No announcement yet.

asset allocation help

  • Filter
  • Time
  • Show
Clear All
new posts

  • asset allocation help

    thanks for previous help all,  I need some input in asset allocation

    thanks in advance

    age 35, married with kids (one income)

    85/15 stocks/bonds

    50% US 30% intl 15% bonds 5% REIT

    I don't have anything in the taxable account yet

    most of the assets are in the 401k and 457 b, my roth and spousal roth are small (13k and 5.5 k)  so it's a little disjointed


    40% VIIIX (institutional index, S&P tracker   0.02%)

    6% VIEIX (extended US market  0.07% )

    4% NAESX (small cap index   0.06%)  (in Roth)



    24% VTMNX (developed international  0.07)

    6% VEMIX (emerging international  0.11)



    10% PTTRX (Pimco total return 0.47)

    5% VIPIX (vanguard TIPS 0.07)


    5% VGSIX   (REIT 0.26%)   (in Roth)


    bond options in the 401 k and a 457 accounts are the PTTRX and the VIPIX only

    right now tax deferred stuff is all in target date fund with 0.24% ER


    thanks in advance.


  • #2
    Looks like you've put a lot of thought into this already.

    I would push for closer to 100% stocks but I am a novice.  8-)

    What does this mean "right now tax deferred stuff is all in target date fund with 0.24% ER"  Is that your 401k and 457?


    • #3
      yes JPMCB smartretirement 2045 in 401k and JMYAX smartretirement in 457b

      so basically besides the 2 baby backdoor roth accounts all of current assets are in target date funds


      • #4
        Looks like a sound plan to me. Love seeing all those low expense ratios!


        • #5
          Maybe could consider a bit more small cap (JMYAX has about 6.5%, most 2045 TDFs have twice as much, "total" stock is 70/20/10 or 4:1 500/ext), but that's very much a small-adjustment slant/tilt thing.  It's fine.  Might also consider using a more bond-y fund than PTTRX, (or go bond-less), but if that's all you've got, that's fine.

          PIMCO Total Return is a very interesting doesn't behave like a lot of bond funds since it tries to out-gain usual bonds (overweight in 4-6% coupons, with 47% above 4%, avg intermediate bond fund 23%) and is overweight in 30+-year bonds (22%, with avg 3.6%).  It shorts a lot of cash and bonds and has a high turnover (nearly 500%, about twice the category), but it seems to get the job done.  The DIY investing community tends to eschew active funds like that, relying on the adage (and repeatedly demonstrated truth) that active management does not reliably beat the index over time.  That said, it's been in the top-third at 1-3-5 years and top 4%ile at 10, beating the Barclays Agg by anywhere from 0.15% to 1.4% after fees (ER 0.46%, not as awful as most active funds).  Morningstar loves it (and PIMCO in general).  If you're stuck with an active fund for your bond allocation (there's a question of should you even have one, btw), then PTTRX is an acceptable one to be stuck with.

          Short answer: it's fine.


          • #6

            Diversify, reduce risk, add value!

            You earn 12% ARR via presettlement (litigation) funding.
            Click to expand...

            Cut the spamming. This is your 1st warning...
            Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087