I just fired my financial advisor (yay) but am now scrambling to re-allocate a portfolio with a joint taxable account, my own TSP, husband's 401/457, and Roth IRAs for both. I am using all index funds and have it mostly figured out in regards to stock/bond allocation (80/20) and then allocation within the classes. Spreading it out efficiently is painful, but that's not my immediate issue.
In regards to the 20% bond allocation: I was thinking about 15% bonds, 5% TIPS. Assume total assets of the above accounts is $2M, so that I will put $400,000 into bonds. Some or all of that could go into: G Fund, F Fund, Schwab US bond index (SWAGX), a Barclays US Aggregate Bond Index, Schwab TIPS ETF (SCHP).
Access to the F and G Funds is throwing me off. I could cover all of my bond allocation in my TSP, but don't know if I should (would a bond index fund offer something they don't?). I see a lot of praise for both of those TSP funds, and believe that the G fund offers some inflation protection but not in the same manner as a TIPS fund.
The other consideration is that we might start using the 457 first in early retirement, but the bond index fund in there costs 19 basis points compared to 3-5 for all the other options.
Suggestions on how to do my bond allocation? How much G, F, bond index, TIPS?
Many thanks!
In regards to the 20% bond allocation: I was thinking about 15% bonds, 5% TIPS. Assume total assets of the above accounts is $2M, so that I will put $400,000 into bonds. Some or all of that could go into: G Fund, F Fund, Schwab US bond index (SWAGX), a Barclays US Aggregate Bond Index, Schwab TIPS ETF (SCHP).
Access to the F and G Funds is throwing me off. I could cover all of my bond allocation in my TSP, but don't know if I should (would a bond index fund offer something they don't?). I see a lot of praise for both of those TSP funds, and believe that the G fund offers some inflation protection but not in the same manner as a TIPS fund.
The other consideration is that we might start using the 457 first in early retirement, but the bond index fund in there costs 19 basis points compared to 3-5 for all the other options.
Suggestions on how to do my bond allocation? How much G, F, bond index, TIPS?
Many thanks!
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