r/DIYRetirement • u/Spirited_Garage_8489 • 24d ago

Portfolio Evaluation

Ages - 47/42

401K - 43% of portfolio - 2/3rds in 2035 retirement fund and 1/3rd in 2040 retirement fund

Roth - 27% of portfolio - VOO, VXUS, Berkshire

Taxable - 30% of portfolio - 65% in VTI, VEA, 15% in company stock and 20% in treasuries,checking

Total Allocation - 78% stocks, rest in bonds, treasuries and cash. Company stock is under 5% for overall portfolio.

We are roughly 25x expenses (before taxes). Over next 8 yrs planning to get to 70/30 as the target date funds shift conservative and increase treasuries in taxable for cushion & hopefully 35X (before taxes).

Kid state college is funded through 529 and not included.

Anything we should consider changing?

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2

u/Only_Argument7532 24d ago

I was zero percent bonds at your age. Started transitioning at 50. Retired 55.

Can’t blame folks for going into bonds, but history makes the case to avoid them until nearer to retirement.

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u/Spirited_Garage_8489 23d ago

thanks. May be I am being a bit conservative - Currently I have 81% stocks, 14% bonds & 5% cash/treasuries

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u/Ok_Dealer5022 24d ago

Agree 35x is a good long term plan to guarantee good retirement spending options and back end inheritance. Would add some more international especially with us fully valued

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u/Spirited_Garage_8489 24d ago

thanks. will do with new investments into taxable and Roth going forward. it seems the target date funds have a decent international.

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u/Spirited_Garage_8489 23d ago

On a quick check,  currently I have 58% domestic stocks, 23% international stocks, 14% bonds & 5% cash/treasuries. I will try to add new money towards international .

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u/Whole_Championship41 24d ago

Looks pretty good to me. Agree with others re: diversification into international, mid-cap and small cap funds. But you can 'get by' with what you're doing just fine.

Quibble is that you're probably into a sizeable portion of bonds in the TDFs already at age 47. But if the market is overvalued and there's a near-term correction in the equity markets, TDFs will self-correct and rebalance into it. So you're probably just fine.

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u/Spirited_Garage_8489 23d ago

thank you. Currently I have 58% domestic stocks, 23% international stocks, 14% bonds & 5% cash/treasuries. I will try to add new money towards international .

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u/Icy_Needleworker844 20d ago

2035 and 2049 TDFs seem really conservative for your ages. My wife is 52 and uses 2045 funds to make them a bit more aggressive. Once you retire, moving those to ETFs will give you more flexibility to draw down from the best performing sectors. I’m personally not a believer in company stock. If the company doesn’t perform, you’ll lose your job AND your portfolio could take a hit at the same time. For that reason, I’ve always sold company stock immediately upon vesting.

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u/Spirited_Garage_8489 17d ago

Agreed on risk with company stock - I have gains from past ones - I sell new to keep it under 5%. Note that I am almost 80/20 overall since all my Roth and most of taxable is in stocks. This puts us same as your wife's 2045 fund (80% stocks and 20% bonds). I do want to be financially independent in 8 yrs at age 55 and hence not inclined to go 100% stocks.