You can definitely simplify to a 3-Fund Portfolio, especially if you view "his & hers" accounts as an single household retirement portfolio. You can move from 16 holdings down to 7 at no cost to switch, since these funds are all in tax-advantaged accounts.2.I need some advice on how to streamline our investments across accounts. I’d prefer to go as simple as possible and prefer Index Funds or ETFs. Does our current allocation make sense or can we simplify?
70/30 with 20% of stocks in int'l is 56% US / 14% Int'l / 30% bonds, which is a perfectly fine AA. Her 401k is the biggest account, so put all 30% bonds and all 14% int'l here. All other accounts just hold one US stock fund each. The two S&P-500 funds are highlighted in red/pink because they should probably be swapped out for Total Stock Market (VTI in His Trad Rollover IRA and FZROX in His Roth IRA). That way none of the tax-advantaged accounts are holding S&P-500 and if you ever open a taxable account for retirement, that taxable account can hold S&P-500 and there's no Wash Sale concerns. Apologies if you already have a taxable account, but I didn't see it listed (so just thinking ahead to avoid future problems).
A template spreadsheet to do this kind of simplification and re-balancing to get back on target is here:
Asset Allocation Sheet
AA Current and Proposed
If you're second-guessing your that your AA is too aggressive or not aggressive enough, consider taking the (free) Vanguard Investor Questionnaire to see what AA it recommends based on your personal responses to the quiz. You and your spouse may want to both take the quiz and then sort of average the two AAs it gives, if they're not the same.
Statistics: Posted by bonesly — Mon Apr 08, 2024 12:51 am — Replies 9 — Views 569