Vanguard Portfolio Assistance?

Question

I plan to invest $400,000 in the following taxable account:

40% - Vanguard CA Intermediate term tax exempt fund (VCAIX)
40% - Vanguard Total Stock Market Index Fund (VTSMX)
20% - Vangaurd Tax Managed International Fund (VTMGX)

I am 27 and hope not to touch the money until retirement in at least 30 years. I want a simple portfolio with a 60/40 split (I have a 401k but dont want that to come into consideration here). Am I on the right track or does anyone have any suggestions for improvement?

Thanks in advance!

Answer 1

It looks like a reasonable mix to me. I would suggest minor changes. Vanguard recommends putting no more than 20% of your stock investments in International stocks, and 80% in domestic stocks. Since your stock allocation is 60%, you should theoretically put 12% in foreign stocks and 48% in domestic stocks. The Tax Managed International Fund has almost no emerging markets exposure, While the Total International Stock Fund has approximately 14% emerging market exposure. You should also be in Admiral funds for accounts over $100,000.

You may also want to consider a higher exposure to stocks than a 60/40 mix at age 27. Many people your age would have about a 90% stock exposure. (Look at the Vanguard Target Retirement 2045 Fund (VTIVX); it's 90% stock.) However, you may not have the appetite for higher risk.


I would suggest
40% Vanguard California Intermediate-Term Tax-Exempt Fund Admiral Shares (VCADX)
48% Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX)
10% - Vanguard Tax Managed International Fund (VTMGX)
2% Vanguard Emerging Markets Stock Index Fund Investor Shares (VEIEX)

Answer 2

At your age 40% in muni bonds is too conservative. I'd go 70% in equities and 30% in the CA tax exempts. I'd allocate 20% of the equities in the VG Total Stock Market Index, 20% in a VG MidCap fund, 20% in a VG small cap fund and the remaining 10% in the International fund. As you get closer to the time you want to retire or use these funds you can weight the allocations more to fixed income and less to equities. You're 27 and in this for the long term, you have to be concerned about inflation, equities should outpace inflation, where the fixed income won't.

Good luck!

Answer 3

they are familiar % bypass decrease back over 3, 5, and 10 years and now no longer compounded. merely upload the % bypass decrease back for each 3 hundred and sixty 5 days and divide by way of the quantity of years in contact. If the fund lost 50% the extensive-unfold 3 hundred and sixty 5 days, then it ought to take a a hundred% bypass decrease back here 3 hundred and sixty 5 days to be even. So if the account had 10K had the subsequent returns: 3 hundred and sixty 5 days a million: +10 3 hundred and sixty 5 days 2: -20 3 hundred and sixty 5 days 3: +15 3 hundred and sixty 5 days 4: +5 3 hundred and sixty 5 days 5: +20 finished: +30 or 30/5 = 6% familiar over 5 years and account ought to strengthen to $13,382 yet certainly based on the actual returns each year suitable right here follows how the account did: 3 hundred and sixty 5 days a million: +10, $11,000 3 hundred and sixty 5 days 2: -20, $8,800 3 hundred and sixty 5 days 3: +15, $10,a hundred twenty 3 hundred and sixty 5 days 4: +5, $10,626 3 hundred and sixty 5 days 5: +20, $12,751 that's no longer as much as the familiar bypass decrease back calculation. This decrease quantity relies upon upon a compounded annual yield of four.9806% over 5 years. The compounded yield must be the right quantity to document even with the shown fact that may not. The mutual fund employer makes use of the familiar returns to lie to skills shareholders into making an investment in mutual funds pondering it may provide a faux greater efficient bypass decrease back quantity.

Answer 4

It looks good, but make sure you keep some funds available for traditional stock purchases and trades but otherwise I think you are good to go.

Answer 5

Looks good, but you should leave some in a more liquid account incase some investment opportunity comes along.