Vanguard Portfolio Advice

Amazon L!F3
Jan 7, 2018 25 Comments

I have around 75k in vanguard admiral index funds:

Total stock market index: 30k
Small cap: 15k
Total bond index: 15k
Total international: 13k

What do you guys think? I will be putting more more, should I rebalance?

Update:
I’ll be putting 50k more. So it will look like:

Total Stock: 50k
Small cap 25k
Bond: 25k
International: 23k

Goal is long term, have emergency cash separate.

comments

Want to comment? LOG IN or SIGN UP
TOP 25 Comments
  • Tableau / Eng Johnny27
    It looks very reasonable to me. You can take a look at the portfolios from Wealthfront or Betterment (they're both available for free on their website) to get some ideas on allocation. Or look at the target date Vanguard fund corresponding to your age and look what's inside.
    Jan 7, 2018 0
  • Synopsys / Eng
    dhinchak

    Synopsys Eng

    PRE
    Oracle, Mentor Graphics
    BIO
    Phd. Comp engg. 10 years work exp.
    dhinchakmore
    (Age - 10) in total bond index in tax advantaged account. (110 - age) in stocks, preferably in taxable account divided in two parts: 60% of it in total US stock market and 40% in total international. Rebalance yearly.
    Jan 7, 2018 7
    • Amazon L!F3
      OP
      I have read mixed things about international stocks as major companies of the world are also already listed in US stock markets, is it worth putting 40% in international stocks?
      Jan 7, 2018
    • Synopsys / Eng
      dhinchak

      Synopsys Eng

      PRE
      Oracle, Mentor Graphics
      BIO
      Phd. Comp engg. 10 years work exp.
      dhinchakmore
      It's like vim vs emacs. Just stick with one and don't tinker around. Same for international. Your return 3-4 decades from now, with or without international may be only tiny bit different (due to the correlation that you hinted at).
      Jan 7, 2018
    • Synopsys / Eng
      dhinchak

      Synopsys Eng

      PRE
      Oracle, Mentor Graphics
      BIO
      Phd. Comp engg. 10 years work exp.
      dhinchakmore
      Oh, and no way to guess which one of these two tiny bit different numbers will come up ahead. So, as a strategy, include international. Outcome, who knows.
      Jan 7, 2018
    • Amazon L!F3
      OP
      I am skeptical about 40%. IMHO 20% should be good.
      Jan 7, 2018
    • Amazon L!F3
      OP
      That’s a very old article 2007 however crux of the matter is international stocks add diversity but at higher risk. I agree with starting 20% and then slowly increase.
      Jan 7, 2018
    • Tableau / Eng Johnny27
      You're right, I should have mentioned it was an old article but it's still relevant. I think the US/intl split in target date funds like Vanguard and Fidelity haven't really changed since then.
      Jan 7, 2018
  • Wells Fargo bpiS06
    Better to go to Robo Advisor. They do the asset allocation, rebalancing etc. Keep Vanguard but put money in the Robos also
    Jan 7, 2018 3
    • Tableau / Eng Johnny27
      Problem with using Wealthfront or Betterment while still holding similar funds in your Vanguard account is that you won't be able to enable the tax loss harvesting feature
      Jan 7, 2018
    • Amazon L!F3
      OP
      How much tax loss harvesting useful?
      Jan 7, 2018
    • Tableau / Eng Johnny27
      Good blog about the actual benefits from real people.

      https://blog.wealthfront.com/real-value-tax-loss-harvesting/
      Jan 7, 2018
  • LinkedIn TFinder
    Have two phone call appointments with vanguard personal advisor, and get a personalized investment plan. It is worth it. In the first call, the advisor listens to your goals, and in the second call, he comes up with a very detailed investment plan.
    Jan 7, 2018 5
    • Tableau / Eng Johnny27
      Curious how much those personalized plans cost?
      Jan 7, 2018
    • LinkedIn TFinder
      First call didn’t cost any. I’m waiting for the second call this week, but i already got the investment plan document from the advisor. I will see if the second call costs anything.
      Jan 7, 2018
    • Microsoft foobar12
      Did the second call cost anything?
      Jan 31, 2018
    • LinkedIn 5!
      No, no cost with the second call as well.
      Jan 31, 2018
    • eBay CEbi00
      @5! So, when do they really charge you?
      Jul 30, 2018
  • Nvidia / Eng Rtyup
    I would like to hear thoughts on increasing the bond portfolio. With interest rate increase around the corner, is it a smart idea anymore ?
    Jan 7, 2018 2
  • Synopsys / Eng
    dhinchak

    Synopsys Eng

    PRE
    Oracle, Mentor Graphics
    BIO
    Phd. Comp engg. 10 years work exp.
    dhinchakmore
    Once economy cools off, change that (age - 10) to (age - 20).
    Jan 7, 2018 1
    • Amazon eek a 🐁
      Beware of putting a lot into long duration bonds in a hot economy. You will get pummeled when interest rates rise. In that case you may just sit in high interest saving or short term bonds
      Jan 8, 2018
  • Facebook Sona
    This is fairly similar to my portfolio which is managed by vanguard.
    Jan 7, 2018 0

Join verified employees in our anonymous social network! Download the app!

close