My portfolio a year ago was almost as messed up as yours. Too busy earning money and living to properly manage the investments. Here is what I did. Not that what I did was smart for me, let alone smart for you.
I think the key is to figure out where you would like to be first. That is the most important thing at this point. You have figured out a basic asset allocation which is good. I elected to so with roughly a 70/30 split. Then you should figure out what types of investments you want in which types of accounts. Not sure if this will format correctly, but for each type of asset I chose a primary and secondary type of account to hold that type of asset. So for example, Foreign bonds as a type of asset the Primary place I want that is in an IRA. The secondary location would be a Roth. I never want it in a taxable account. This portfolio is more complicated than it needs to be. I could easily get rid of TIPS, REIT, and Commodities and just go with US Equity, ex-US equity, US Bond, Ex-US Bond, and Cash portfolio. Even simpler would be a total stock and total bond fund.
PrimarySecondary
US Equity Tax/RothTax/Roth
International EquityTax/RothTax/Roth
US Bonds IRA Roth
Foreign Bonds IRA Roth
TIPS IRA Roth
REIT Roth IRA
Commodities IRA Roth
Money Market/CashTaxable
Once you decide where you want your different asset types then you just need to start making changes. In Taxable accounts, sell off anything that has a loss, or very little gain and buy what you have identified as wanting to hold. For me, I decided that I want to hold a total US Stock ETF in my taxable account. I sold all the losers and those with little long term gain and bought a total stock ETF. I chose SCHB.
In the tax advantaged accounts, it is simple. Just sell off everything and buy what you want in that account. For total stock I chose VTI. This way there is no risk of a wash sale with my SCHB in the taxable. For ex-US funds I chose VXUS since it has decent emerging market exposure. Any international that is in my taxable is in SCHF, again to avoid wash sale risks. Look at your portfolio as a whole when meeting your allocation targets. I have nothing but equities in my taxable account. I have ETFs other than SCHB only because selling them would have given me capitol gains that I don't want yet. So while some of my positions aren't "ideal" they will work for now.
Again, first figure out what you your ideal portfolio would look like. Then you can move in that direction. Don't worry about what has happened in the past, just look forward.
I think the key is to figure out where you would like to be first. That is the most important thing at this point. You have figured out a basic asset allocation which is good. I elected to so with roughly a 70/30 split. Then you should figure out what types of investments you want in which types of accounts. Not sure if this will format correctly, but for each type of asset I chose a primary and secondary type of account to hold that type of asset. So for example, Foreign bonds as a type of asset the Primary place I want that is in an IRA. The secondary location would be a Roth. I never want it in a taxable account. This portfolio is more complicated than it needs to be. I could easily get rid of TIPS, REIT, and Commodities and just go with US Equity, ex-US equity, US Bond, Ex-US Bond, and Cash portfolio. Even simpler would be a total stock and total bond fund.
PrimarySecondary
US Equity Tax/RothTax/Roth
International EquityTax/RothTax/Roth
US Bonds IRA Roth
Foreign Bonds IRA Roth
TIPS IRA Roth
REIT Roth IRA
Commodities IRA Roth
Money Market/CashTaxable
Once you decide where you want your different asset types then you just need to start making changes. In Taxable accounts, sell off anything that has a loss, or very little gain and buy what you have identified as wanting to hold. For me, I decided that I want to hold a total US Stock ETF in my taxable account. I sold all the losers and those with little long term gain and bought a total stock ETF. I chose SCHB.
In the tax advantaged accounts, it is simple. Just sell off everything and buy what you want in that account. For total stock I chose VTI. This way there is no risk of a wash sale with my SCHB in the taxable. For ex-US funds I chose VXUS since it has decent emerging market exposure. Any international that is in my taxable is in SCHF, again to avoid wash sale risks. Look at your portfolio as a whole when meeting your allocation targets. I have nothing but equities in my taxable account. I have ETFs other than SCHB only because selling them would have given me capitol gains that I don't want yet. So while some of my positions aren't "ideal" they will work for now.
Again, first figure out what you your ideal portfolio would look like. Then you can move in that direction. Don't worry about what has happened in the past, just look forward.
Statistics: Posted by WeakOldGuy — Mon Oct 21, 2024 12:49 am — Replies 3 — Views 149