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Bluedevil156
Follower ○○

Portfolio Guidance, input and opinion

Hello, 

I believe I posted this to the incorrect topic previously, I am hopeful you can all help me  to with some advice and guidance and how best to evaluate this retirement portfolio.

  • 58 years old
  • May retire sooner than planned due to health issues. 
  • Currently contribution annual max to 403 B and wife's 401 K.  Also contribute to a 457 B post tax,
  • Assets in IRA and active work place retirement plans 

I'd appreciate guidance. insight and suggested resources for evaluating funds, allocation and streamlining portfolio. i used x ray, indicates where I am, not where I should be.  

per X Ray

  • 59%  equity
  • 34% bonds
  • Large Core

Thank you in advance  - BD-156

 

NameTickerStock Industry/

Fund Category
Standard

Deviation

3 Year
Beta

3 Year
$ Market

Value
%

Weight
Morningstar

Rating For

Funds
Role in

Portfolio
T. Rowe Price Dividend GrowthPRDGXLarge Blend10.050.8418,379.8320%5Core
Vanguard Total Intl Stock Index AdmiralVTIAXForeign Large Blend11.561.0414,143.6520%3Core
Vanguard Total Stock Mkt Idx AdmVTSAXLarge Blend12.41.0174,262.888%4Core
Vanguard Total Intl Bd Idx Admiral™VTABXWorld Bond-USD Hedged2.610.6165,565.008%4Core
AMG Managers Loomis Sayles Bond NMGFIXIntermediate Core-Plus Bond2.960.7160,181.228%4 
Loomis Sayles Core Plus Bond NNERNXIntermediate Core-Plus Bond2.980.8154,708.807%3Core
Vanguard Interm-Term Invmt-Grade InvVFICXCorporate Bond3.311.0114,131.305%3Supporting
Vanguard Windsor™ Admiral™VWNEXLarge Value13.811.187,419.784%3Core
Vanguard Interm-Term Bond Index AdmVBILXIntermediate Core Bond4.011.282,931.834%5Core
Vanguard Short-Term Investment-Grade InvVFSTXShort-Term Bond1.340.477,475.044%4Supporting
Fidelity® Large Cap Value Enhanced IndexFLVEXLarge Value12.231.065,520.213%4 
Fidelity® Low-Priced StockFLPSXMid-Cap Value11.50.961,690.643%4Core
Vanguard Target Retirement 2025 InvVTTVXTarget-Date 20257.011.038,433.202%5Core
AMG Managers Loomis Sayles Bond NMGFIXIntermediate Core-Plus Bond2.960.726,385.171%4 
T. Rowe Price Instl Large Cap GrowthTRLGXLarge Growth13.521.021,197.661%5Core
Vanguard PRIMECAP AdmVPMAXLarge Growth14.061.120,915.331%4Core
Eaton Vance Core Plus Bond AEBABXIntermediate Core-Plus Bond2.740.415,190.411%5 
MassMutual Select Mid Cap Growth IMEFZXMid-Cap Growth12.881.011,404.081%4 
    0.92,109,936.03100  
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14 Replies
retiredat48
Participant ○○○

Re: Portfolio Guidance, input and opinion

 

Hi BlueDevil...

How about a few questions:

--Will you/spouse have any annual Social Security?  Any pension income...what age?

--What is your approx annual cost to live...your spending needs?  Rough Estimate.

--If you retire early, what do you do to get healthcare insurance?

--Any heirs?  Beneficiaries?

--Are you aware of the term SWR?

--How do you rate your investment knowledge and acumen, scale of 1-10, ten being tops?

--Do you have your current portfolio XRAY results?  Could you please provide:  portfolio yield; percent in each of the nine stock style boxes, such as small cap, growth--3%;  percent international; % cash; portfolio overall expense ratio; percent of bonds in high, medium or low quality.

--Do you know what Safe Withdrawal Rate means?

--Spouse still working?  Will she stay working?

--Do you think intuitively, that you have enough money to retire...now?

--Is blue devil moniker related to Duke University?

disclaimer...I have a son-in-law who graduated from Duke.

I await your reply...

R48

 

 

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Bluedevil156
Follower ○○

Re: Portfolio Guidance, input and opinion

-Will you/spouse have any annual Social Security?  Any pension income...what age? ****yes. we both plan on Social Security, 62 for both of us, hers maybe later.  Estimate $34,000 to $36,000 annually each.

--What is your approx annual cost to live...your spending needs?  Rough Estimate. ***$8,000 to $10,000 per month. No mortgage planned,  

--If you retire early, what do you do to get healthcare insurance? ***I will have discounted retiree healthcare through work, at 50%. Will have to look on open market for a few years. Most concerning to me with second occur of CA.  

--Any heirs?  Beneficiaries? ****2 sons, both on their own, no hard plans to leave money, our legacy may have to be  - not being a burden financially or other wise.

--Are you aware of the term SWR? ***safe withdrawal rate? from below?

--How do you rate your investment knowledge and acumen, scale of 1-10, ten being tops? ***5-6 (self directed for 30+ years always low cost buy and hold mutual fund investor. Also a early user to the "financial engines" asset allocation tool. - Bill  Sharpe's company. (Sharpe Ratio) 

--Do you have your current portfolio XRAY results?  ***yes

Could you please provide: 

portfolio yield;

percent in each of the nine stock style boxes, such as small cap, growth--3%;  percent international; % cash; portfolio overall

  • Large     26 - 28 - 24
  • Medium  6 -  6 -   4
  • Small       2  - 1 -   1

Asset Class

  • Cash  6%
  • US Stock   38%
  • For. Stock   22%
  • Bonds  34%
  • Other  1%

expense ratio ****.35%;

percent of bonds in:

High:

  • None 0%

Medium:

  • Medium - Limited term    10%
  • Medium - extensive term    65%
  • Medium - moderate term  22%

Low:

  • Low - Limited Term 2%

--Do you know what Safe Withdrawal Rate means? ****not exactly . +/-4%?

--Spouse still working?  Will she stay working? ***She is still working, 

--Do you think intuitively, that you have enough money to retire...now? ****yes, if all goes well.  Also will have a small defined benefit pension $20.000- $23,000 per year.  Dependent how long I can stay on.  figures reflect survivor benefit election for wife. 

--Is blue devil moniker related to Duke University? ****Yes Sir, Let's Go Duke!!

 

 

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Bluedevil156
Follower ○○

Re: Portfolio Guidance, input and opinion

R 48.  Thank you for your time and  interest,  I appreciate all observations and suggestions. 

BD-156

0 Kudos
Gary1952
Contributor ○○○

Re: Portfolio Guidance, input and opinion

For me there are too many funds and especially the 1-3% range. I would try to consolidate to 5 equity and 5 bond OEFs. I can relate because I like to have too many as well. I got rid of one this week to go back to 10. I have 1 div growth, 1 div equity, 1 total market, 1 world ex-US equity and 1 large growth. I don't really think about what is core. For bonds I have 2 core which is 1 low duration and 1 unconstrained, then 2 nontraditional and 1 multi-sector fund. I am looking at 1 tax-free fund for my taxable account the beginning of the new year. My bonds are pretty conservative compared to many here on the board. My plan is to generate around 4% of withdrawals once RMDs start. Currently I live on SS and cash I have saved specifically for the next couple of years.

I would learn to use Backtest Asset Allocationin the Portfolio Visualizer program to learn about your funds and what allocation to each you might want to have. Keep asking a lot of questions here. There are many good investors with a lot of info. I have developed quite a bit of investing acumen from the people here.

Sounds like you have a good income stream and a large enough portfolio to retire. Another approach might be to hire a fee consultant to help you map out your retirement if you re not up to doing it yourself. Personally I wouldn't.


@Bluedevil156 wrote:

Hello, 

I believe I posted this to the incorrect topic previously, I am hopeful you can all help me  to with some advice and guidance and how best to evaluate this retirement portfolio.

  • 58 years old
  • May retire sooner than planned due to health issues. 
  • Currently contribution annual max to 403 B and wife's 401 K.  Also contribute to a 457 B post tax,
  • Assets in IRA and active work place retirement plans 

I'd appreciate guidance. insight and suggested resources for evaluating funds, allocation and streamlining portfolio. i used x ray, indicates where I am, not where I should be.  

per X Ray

  • 59%  equity
  • 34% bonds
  • Large Core

Thank you in advance  - BD-156

 

NameTickerStock Industry/

Fund Category
Standard

Deviation

3 Year
Beta

3 Year
$ Market

Value
%

Weight
Morningstar

Rating For

Funds
Role in

Portfolio
T. Rowe Price Dividend GrowthPRDGXLarge Blend10.050.8418,379.8320%5Core
Vanguard Total Intl Stock Index AdmiralVTIAXForeign Large Blend11.561.0414,143.6520%3Core
Vanguard Total Stock Mkt Idx AdmVTSAXLarge Blend12.41.0174,262.888%4Core
Vanguard Total Intl Bd Idx Admiral™VTABXWorld Bond-USD Hedged2.610.6165,565.008%4Core
AMG Managers Loomis Sayles Bond NMGFIXIntermediate Core-Plus Bond2.960.7160,181.228%4 
Loomis Sayles Core Plus Bond NNERNXIntermediate Core-Plus Bond2.980.8154,708.807%3Core
Vanguard Interm-Term Invmt-Grade InvVFICXCorporate Bond3.311.0114,131.305%3Supporting
Vanguard Windsor™ Admiral™VWNEXLarge Value13.811.187,419.784%3Core
Vanguard Interm-Term Bond Index AdmVBILXIntermediate Core Bond4.011.282,931.834%5Core
Vanguard Short-Term Investment-Grade InvVFSTXShort-Term Bond1.340.477,475.044%4Supporting
Fidelity® Large Cap Value Enhanced IndexFLVEXLarge Value12.231.065,520.213%4 
Fidelity® Low-Priced StockFLPSXMid-Cap Value11.50.961,690.643%4Core
Vanguard Target Retirement 2025 InvVTTVXTarget-Date 20257.011.038,433.202%5Core
AMG Managers Loomis Sayles Bond NMGFIXIntermediate Core-Plus Bond2.960.726,385.171%4 
T. Rowe Price Instl Large Cap GrowthTRLGXLarge Growth13.521.021,197.661%5Core
Vanguard PRIMECAP AdmVPMAXLarge Growth14.061.120,915.331%4Core
Eaton Vance Core Plus Bond AEBABXIntermediate Core-Plus Bond2.740.415,190.411%5 
MassMutual Select Mid Cap Growth IMEFZXMid-Cap Growth12.881.011,404.081%4 
    0.92,109,936.03100  

 

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arriba
Participant ○○

Re: Portfolio Guidance, input and opinion

Cherry picking here...

WAY too much foreign stock exposure primarily invested in 3* VTIAX. 

VTIAX is a foreign, large blend index fund, with middle-of-the-road past performance history.  Both its passive style in this particular category and its average-to-weak past performance make this fund one I've never/will never own. 

Tough category, but maybe take a look some of the Morgan Stanley foreign stock funds as possible alternatives.  Definitely reduce foreign stock exposure.  See discussion at 

https://community.morningstar.com/t5/International-Investing/Active-Management-Expense-Worth-the-Cos...

Lots more comments but no time to do so right now.  

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yogibearbull
Valued Contributor

Re: Portfolio Guidance, input and opinion

The OP has provided a consolidated view of his holdings in 403b, 401k, 457b, IRAs, and may be also taxable accounts. That is why some % are small. After retirement, one decision to be made would be whether to rollover/direct-transfer workplace assets into T-IRA - and that should depend on type of funds available there [unique? Institutional? SV?].

YBB
retiredat48
Participant ○○○

Re: Portfolio Guidance, input and opinion


@Bluedevil156 wrote:

R 48.  Thank you for your time and  interest,  I appreciate all observations and suggestions. 

BD-156


Good reply to info request, BD.

Except I don't see your entry for: PORTFOLIO YIELD??

Let me digest this and reply in a couple days.  I'm preparing a soon transition to Florida, coming through Duke and UNC-Chapel Hill!

R48

 

0 Kudos
retiredat48
Participant ○○○

Re: Portfolio Guidance, input and opinion


@retiredat48 wrote:

@Bluedevil156 wrote:

R 48.  Thank you for your time and  interest,  I appreciate all observations and suggestions. 

BD-156


Good reply to info request, BD.

Except I don't see your entry for: PORTFOLIO YIELD??

Let me digest this and reply in a couple days.  I'm preparing a soon transition to Florida, coming through Duke and UNC-Chapel Hill!

R48

 

 


Thread bump...BlueDevil, do you have your portfolio yield from the XRAY??

R48

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retiredat48
Participant ○○○

Re: Portfolio Guidance, input and opinion


@retiredat48 wrote:

@retiredat48 wrote:

@Bluedevil156 wrote:

R 48.  Thank you for your time and  interest,  I appreciate all observations and suggestions. 

BD-156


Good reply to info request, BD.

Except I don't see your entry for: PORTFOLIO YIELD??

Let me digest this and reply in a couple days.  I'm preparing a soon transition to Florida, coming through Duke and UNC-Chapel Hill!

R48

 

 


Thread bump...BlueDevil, do you have your portfolio yield from the XRAY??

R48


BlueDevil...you still around??

R48

 

0 Kudos
Bluedevil156
Follower ○○

Re: Portfolio Guidance, input and opinion

Sorry R48,  out of pocket a few days, 

% Dividend yield TTM = 2.35%

 

0 Kudos
retiredat48
Participant ○○○

Re: Portfolio Guidance, input and opinion


@Bluedevil156 wrote:

Sorry R48,  out of pocket a few days, 

% Dividend yield TTM = 2.35%

 


I'm on travel southward, staying one step ahead of snow, which I haven't seen in 27 years.  Now in Chapel Hill, ...but quite cold.

Will reply soon.  Standby.

R48

 

0 Kudos
retiredat48
Participant ○○○

Re: Portfolio Guidance, input and opinion

 

OK BlueDevil...here's my comments:

Relax, you have it made.  You could retire now if desired.

I like your portfolio low expense ratio (0.35%); I generally like your fund selections.  You have no mortgages.  You have reasonable investment acumen.  

For starters, you state you need (average) $9000/month in retirement to live on.  Perhaps overestimated, but let's use that figure, $108,000 a year in spending.

Your annual income starts with combined $72,000 social security...age 62 figures.  Then a pension of $23,000 annually, with spousal survivorship.  That is $95,000 a year total.

SWR studies, or Safe Withdrawal Rates, generally state you can take 4% from a portfolio, and be above 99% safe that you will not deplete portfolio in 30 years time duration.  You have a $2.1 million portfolio; thus 4% means withdrawing $84,000 a year.  However you only need $13,000 a year (108K - 95K).  This is not even worth calculating, as your withdrawal needs are a very low portfolio percentage.

Note also your portfolio yield is currently  2.35%; so your portfolio income (dividends/interest) far exceed needs.  Notwithstanding, I usually encourage retirees to have an income tilt that gets to 3+% yield.  (Disclaimer...my fixed income bond side is north of 6%).  For you, consider a better mix of high yield (junk) bond funds, and perhaps some leveraged Closed End Funds to boost FI side income.  On the stock side, consider owning some higher dividend yield mutual funds/ETFs, including funds such as dividend growth funds (such as Vanguard's VDIGX, or the ETF) and Income Builder Funds, such as TIBIX.  Get that yield up higher, and it will act as a buffer for mitigating bear markets.

Continuing...

--I consider your current asset allocation is great.  Regarding the per cent international, I support your 22% now.  You have enough money such that you should be HEDGING BAD OUTCOMES.  One such bad future outcome is the USA market severely lagging the world in  next 20 years.  So holding international is a hedge regarding this.  Further, international has lagged last decade yet is beginning to show life.  To me, hold your 22%, and even add to it if international takes off.

--Regarding int'l suggest consider Vanguard's Int'l Small Cap Stock ETF, VSS.  Here, you get a good yield, participate in population growth, in small caps that generally do well long term.

--You will likely have a pretty high marginal tax rate.  Suggest broad use of Exchange Traded Funds in your taxable accounts.  With ETFs you get a tax advantage:  IRS structure allows them to pay only very little in long term cap gains each year; OEFs do not have this feature, and have much higher annual payouts.  Get familiar with this ETF tax feature.  Further, if you hold small cap stock ETFs in taxable, you have very little annual income via dividends.  So, holding small cap ETFs in taxable let's you participate in good growth, w/o paying annual taxes, and if you hold until you die, you get a step-up tax basis to your heirs.

--Your small cap percentage per xray is quite low; suggest adding more in this space.  Small caps historically beat large caps/ it may be time for them to shine.

--I am not a fan of BOND INDEX FUNDS.  Unlike stock funds, bond managers DO ADD value.  Active managers such as at PIMCO, Loomis Sayles and Doubleline (Gundlach) have core bond funds, of high quality, that consistently beat index bond fund performance.  I suggest switching to some (more later).  You will also get a yield boost.

--My final comment is a big hitter...perhaps an "ah ha" moment.  Once you have more than enough, and you do, I recommend retirees consider investing as though THEIR HEIRS OWNED THE PORTFOLIO.  Like, if your two sons inherit, then invest in what their asset allocation should be for their age.  If a college is an heir, invest in their allocation.  For instance, many colleges have a very high percent stock allocations.  While I like your allocation now, I suspect an even higher stock percent is warranted.  Perhaps add saved income to the stock side.  Or hedge more...such as inflation hedge funds.  Do not overly invest in bonds.  Have some fun and maybe take a flier on a single stock such as Amazon!  Learn about FI closed end funds that now yield 8+%, run by PIMCO.  Like, checkout PCI.  Read the forums on these holdings, especially if you retire and have the time.

Whew...Best wishes BlueDevil. 

I am about 7 miles from Cameron Indoors (BlueDevil territory) as I type!

R48

 

0 Kudos
Bluedevil156
Follower ○○

Re: Portfolio Guidance, input and opinion

Thanks very much R48.  I appreciate sharing your valuable insight and tactical guidance. Extremely value and will put many of your recommendations into action. 

Hope the whether cooperated when you were pass through, we've has an abrupt cold snap this week. 

Best regards - BD, Let's go Duke!


@retiredat48 wrote:

 

OK BlueDevil...here's my comments:

Relax, you have it made.  You could retire now if desired.

I like your portfolio low expense ratio (0.35%); I generally like your fund selections.  You have no mortgages.  You have reasonable investment acumen.  

For starters, you state you need (average) $9000/month in retirement to live on.  Perhaps overestimated, but let's use that figure, $108,000 a year in spending.

Your annual income starts with combined $72,000 social security...age 62 figures.  Then a pension of $23,000 annually, with spousal survivorship.  That is $95,000 a year total.

SWR studies, or Safe Withdrawal Rates, generally state you can take 4% from a portfolio, and be above 99% safe that you will not deplete portfolio in 30 years time duration.  You have a $2.1 million portfolio; thus 4% means withdrawing $84,000 a year.  However you only need $13,000 a year (108K - 95K).  This is not even worth calculating, as your withdrawal needs are a very low portfolio percentage.

Note also your portfolio yield is currently  2.35%; so your portfolio income (dividends/interest) far exceed needs.  Notwithstanding, I usually encourage retirees to have an income tilt that gets to 3+% yield.  (Disclaimer...my fixed income bond side is north of 6%).  For you, consider a better mix of high yield (junk) bond funds, and perhaps some leveraged Closed End Funds to boost FI side income.  On the stock side, consider owning some higher dividend yield mutual funds/ETFs, including funds such as dividend growth funds (such as Vanguard's VDIGX, or the ETF) and Income Builder Funds, such as TIBIX.  Get that yield up higher, and it will act as a buffer for mitigating bear markets.

Continuing...

--I consider your current asset allocation is great.  Regarding the per cent international, I support your 22% now.  You have enough money such that you should be HEDGING BAD OUTCOMES.  One such bad future outcome is the USA market severely lagging the world in  next 20 years.  So holding international is a hedge regarding this.  Further, international has lagged last decade yet is beginning to show life.  To me, hold your 22%, and even add to it if international takes off.

--Regarding int'l suggest consider Vanguard's Int'l Small Cap Stock ETF, VSS.  Here, you get a good yield, participate in population growth, in small caps that generally do well long term.

--You will likely have a pretty high marginal tax rate.  Suggest broad use of Exchange Traded Funds in your taxable accounts.  With ETFs you get a tax advantage:  IRS structure allows them to pay only very little in long term cap gains each year; OEFs do not have this feature, and have much higher annual payouts.  Get familiar with this ETF tax feature.  Further, if you hold small cap stock ETFs in taxable, you have very little annual income via dividends.  So, holding small cap ETFs in taxable let's you participate in good growth, w/o paying annual taxes, and if you hold until you die, you get a step-up tax basis to your heirs.

--Your small cap percentage per xray is quite low; suggest adding more in this space.  Small caps historically beat large caps/ it may be time for them to shine.

--I am not a fan of BOND INDEX FUNDS.  Unlike stock funds, bond managers DO ADD value.  Active managers such as at PIMCO, Loomis Sayles and Doubleline (Gundlach) have core bond funds, of high quality, that consistently beat index bond fund performance.  I suggest switching to some (more later).  You will also get a yield boost.

--My final comment is a big hitter...perhaps an "ah ha" moment.  Once you have more than enough, and you do, I recommend retirees consider investing as though THEIR HEIRS OWNED THE PORTFOLIO.  Like, if your two sons inherit, then invest in what their asset allocation should be for their age.  If a college is an heir, invest in their allocation.  For instance, many colleges have a very high percent stock allocations.  While I like your allocation now, I suspect an even higher stock percent is warranted.  Perhaps add saved income to the stock side.  Or hedge more...such as inflation hedge funds.  Do not overly invest in bonds.  Have some fun and maybe take a flier on a single stock such as Amazon!  Learn about FI closed end funds that now yield 8+%, run by PIMCO.  Like, checkout PCI.  Read the forums on these holdings, especially if you retire and have the time.

Whew...Best wishes BlueDevil. 

I am about 7 miles from Cameron Indoors (BlueDevil territory) as I type!

R48

 


 

0 Kudos
retiredat48
Participant ○○○

Re: Portfolio Guidance, input and opinion


48 in bold...You're welcome, Bluedevil; glad to have helped.

 

If you have any questions or clarifications needed, do not hesitate to post same here.

Good luck in your subsequent retirement.

R48

 

@Bluedevil156 wrote:

Thanks very much R48.  I appreciate sharing your valuable insight and tactical guidance. Extremely value and will put many of your recommendations into action. 

Hope the whether cooperated when you were pass through, we've has an abrupt cold snap this week. 

Best regards - BD, Let's go Duke!


@retiredat48 wrote:

 

OK BlueDevil...here's my comments:

Relax, you have it made.  You could retire now if desired.

I like your portfolio low expense ratio (0.35%); I generally like your fund selections.  You have no mortgages.  You have reasonable investment acumen.  

For starters, you state you need (average) $9000/month in retirement to live on.  Perhaps overestimated, but let's use that figure, $108,000 a year in spending.

Your annual income starts with combined $72,000 social security...age 62 figures.  Then a pension of $23,000 annually, with spousal survivorship.  That is $95,000 a year total.

SWR studies, or Safe Withdrawal Rates, generally state you can take 4% from a portfolio, and be above 99% safe that you will not deplete portfolio in 30 years time duration.  You have a $2.1 million portfolio; thus 4% means withdrawing $84,000 a year.  However you only need $13,000 a year (108K - 95K).  This is not even worth calculating, as your withdrawal needs are a very low portfolio percentage.

Note also your portfolio yield is currently  2.35%; so your portfolio income (dividends/interest) far exceed needs.  Notwithstanding, I usually encourage retirees to have an income tilt that gets to 3+% yield.  (Disclaimer...my fixed income bond side is north of 6%).  For you, consider a better mix of high yield (junk) bond funds, and perhaps some leveraged Closed End Funds to boost FI side income.  On the stock side, consider owning some higher dividend yield mutual funds/ETFs, including funds such as dividend growth funds (such as Vanguard's VDIGX, or the ETF) and Income Builder Funds, such as TIBIX.  Get that yield up higher, and it will act as a buffer for mitigating bear markets.

Continuing...

--I consider your current asset allocation is great.  Regarding the per cent international, I support your 22% now.  You have enough money such that you should be HEDGING BAD OUTCOMES.  One such bad future outcome is the USA market severely lagging the world in  next 20 years.  So holding international is a hedge regarding this.  Further, international has lagged last decade yet is beginning to show life.  To me, hold your 22%, and even add to it if international takes off.

--Regarding int'l suggest consider Vanguard's Int'l Small Cap Stock ETF, VSS.  Here, you get a good yield, participate in population growth, in small caps that generally do well long term.

--You will likely have a pretty high marginal tax rate.  Suggest broad use of Exchange Traded Funds in your taxable accounts.  With ETFs you get a tax advantage:  IRS structure allows them to pay only very little in long term cap gains each year; OEFs do not have this feature, and have much higher annual payouts.  Get familiar with this ETF tax feature.  Further, if you hold small cap stock ETFs in taxable, you have very little annual income via dividends.  So, holding small cap ETFs in taxable let's you participate in good growth, w/o paying annual taxes, and if you hold until you die, you get a step-up tax basis to your heirs.

--Your small cap percentage per xray is quite low; suggest adding more in this space.  Small caps historically beat large caps/ it may be time for them to shine.

--I am not a fan of BOND INDEX FUNDS.  Unlike stock funds, bond managers DO ADD value.  Active managers such as at PIMCO, Loomis Sayles and Doubleline (Gundlach) have core bond funds, of high quality, that consistently beat index bond fund performance.  I suggest switching to some (more later).  You will also get a yield boost.

--My final comment is a big hitter...perhaps an "ah ha" moment.  Once you have more than enough, and you do, I recommend retirees consider investing as though THEIR HEIRS OWNED THE PORTFOLIO.  Like, if your two sons inherit, then invest in what their asset allocation should be for their age.  If a college is an heir, invest in their allocation.  For instance, many colleges have a very high percent stock allocations.  While I like your allocation now, I suspect an even higher stock percent is warranted.  Perhaps add saved income to the stock side.  Or hedge more...such as inflation hedge funds.  Do not overly invest in bonds.  Have some fun and maybe take a flier on a single stock such as Amazon!  Learn about FI closed end funds that now yield 8+%, run by PIMCO.  Like, checkout PCI.  Read the forums on these holdings, especially if you retire and have the time.

Whew...Best wishes BlueDevil. 

I am about 7 miles from Cameron Indoors (BlueDevil territory) as I type!

R48

 


 


 

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