Hello All,
Looking for input/opinions on my asset allocation and then location, as well as what the best way to implement the changes.
I decided on a 75/25 stock ratio as I am a young investor and don't want to overestimate my risk tolerance, divided as below:
International (25%)
VFWAX (Intl-US)-20%
VEMAX (Em Markets)-5%
US (50%)
VTSAX (Total US)/VFIAX (S&P)-25%
VSIAX (Small Cap Value)-10%
VMVAX (Mid Cap Value)-5%
VGSLX (REIT)-10%
Bonds (25%)
VWITX (Intermediate Term Muni)
Right now, I have my Roth, my wife's Roth, and a taxable account, each containing about 1/3 of my invested money. They are all invested in the Vanguard S&P right now, but going forward, I will be investing in the Total US fund. Those 2 funds will ideally comprise 25% of my total portfolio. I will also have a 401k starting in 2017, however my contribution (18k) will be a lump sum toward the end of the year from an upcoming bonus, and the employer contribution (36k) will be a lump sum next March.
I'm not sure what the best (ie most tax efficient) way to make these changes is. The value index funds and Reit will be in a Roth, so no problem there. It makes the most sense to me to have my bond allocation in munis in the taxable account, but I'd rather not realize the capital gains from the s&p fund in the taxable account now. Also, not sure where the best place for the international index is. Probably minor issues but interested to hear what others think. My thought on the bonds is my options are to: 1. Be patient, and just preferentially contribute new money to the munis in taxable until they reach their desired percentage. 2. Realize the capital gains (as minimally as possible) and buy the right amount of bonds. or 3. Buy bonds in Roth or in upcoming 401k contribution (not munis of course), and plan to exchange them for equities once I have the cash to buy them in the taxable account. 1 and 2 seem most reasonable to me.
Thanks for the input!
Looking for input/opinions on my asset allocation and then location, as well as what the best way to implement the changes.
I decided on a 75/25 stock ratio as I am a young investor and don't want to overestimate my risk tolerance, divided as below:
International (25%)
VFWAX (Intl-US)-20%
VEMAX (Em Markets)-5%
US (50%)
VTSAX (Total US)/VFIAX (S&P)-25%
VSIAX (Small Cap Value)-10%
VMVAX (Mid Cap Value)-5%
VGSLX (REIT)-10%
Bonds (25%)
VWITX (Intermediate Term Muni)
Right now, I have my Roth, my wife's Roth, and a taxable account, each containing about 1/3 of my invested money. They are all invested in the Vanguard S&P right now, but going forward, I will be investing in the Total US fund. Those 2 funds will ideally comprise 25% of my total portfolio. I will also have a 401k starting in 2017, however my contribution (18k) will be a lump sum toward the end of the year from an upcoming bonus, and the employer contribution (36k) will be a lump sum next March.
I'm not sure what the best (ie most tax efficient) way to make these changes is. The value index funds and Reit will be in a Roth, so no problem there. It makes the most sense to me to have my bond allocation in munis in the taxable account, but I'd rather not realize the capital gains from the s&p fund in the taxable account now. Also, not sure where the best place for the international index is. Probably minor issues but interested to hear what others think. My thought on the bonds is my options are to: 1. Be patient, and just preferentially contribute new money to the munis in taxable until they reach their desired percentage. 2. Realize the capital gains (as minimally as possible) and buy the right amount of bonds. or 3. Buy bonds in Roth or in upcoming 401k contribution (not munis of course), and plan to exchange them for equities once I have the cash to buy them in the taxable account. 1 and 2 seem most reasonable to me.
Thanks for the input!
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