My Investment Portfolio

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I write a lot about personal finance. If you are wondering what I’m doing for my own finances, here’s a detailed look at my own portfolio. I’m not going to give you dollar amounts, but percentages. If you want to know the dollar amounts, they can be expressed in one word. I have…enough:

At a party given by a billionaire on Shelter Island, Kurt Vonnegut informs his pal, Joseph Heller, that their host, a hedge fund manager, had made more money in a single day than Heller had earned from his wildly popular novel Catch-22 over its whole history. Heller responds,“Yes, but I have something he will never have . . . enough.”

Assets

My financial assets from largest to smallest include: (all percentages are rounded to the nearest whole percentage)

  • 24% – My taxable mutual funds, which is where I put our retirement savings when I fill our retirement accounts. It is currently invested in:
    • 56% – Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX)
    • 37% – Vanguard Total International Stock Index Fund Admiral Shares (VTIAX)
    • 7% – Vanguard Prime Money Market Fund Investor Shares (VMMXX)
  • 21% – My Thrift Savings Plan (TSP) – Currently invested in this proportion:
    • 91% – US stocks
      • 75% – C Fund
      • 25% – S Fund
    • 1% – International stocks (I Fund)
    • 9% – US bonds split evenly between the G Fund and F Fund
  • 15% – My paid off house.
  • 12% – My wife’s TSP, which is invested 100% in US bonds with a 50/50 split of the G and F Funds.
  • 12% – My wife’s Roth IRA, which is invested in:
    • 53% – Vanguard Total International Stock Index Fund Admiral Shares (VTIAX)
    • 47% – Vanguard Total International Bond Index Fund Admiral Shares (VTABX)
  • 9% – We have two 529 plans with Vanguard invested in their aggressive age-based portfolio.
  • 6% – My Roth IRA, which is 100% invested in the Vanguard Total International Stock Index Fund Admiral Shares (VTIAX).
  • 1% – My wife’s individual 401k, which is 100% invested in the Vanguard Total International Stock Index Fund Admiral Shares (VTIAX).
  • 1% – My wife has a 401k that is invested in the Fidelity® 500 Index Fund (FXAIX).

Liabilities

None. Aside from credit cards we pay off every month, we’re debt free.

Overall Asset Allocation

Excluding the pension and my house, here’s my overall asset allocation courtesy of our favorite tool that made all of this easy, Personal Capital:

Screen Shot 2019-11-03 at 11.29.29 AM

7 thoughts on “My Investment Portfolio

    andrew sellers said:
    November 9, 2019 at 09:42

    Don’t know if you are interested, but in this environment with many projecting lower returns for the US stock market going forward (not that anyone really knows). Managed futures (like Dunn Capital or Chesapeake) may be a vehicle for diversifying.

    Best, Andy

    ________________________________

    Like

      Joel Schofer, MD, MBA, CPE responded:
      November 9, 2019 at 13:15

      I keep it simple and don’t believe you need any diversification beyond stocks and bonds. Real estate would be where I’d go next if I wanted to add an asset class, but I don’t.

      Like

    Serena B said:
    January 8, 2020 at 10:02

    What is your reasoning for investing in 529’s as opposed to mutual funds in your name? Do you assume the children will absolutely need the money for school? What would be the penalty if they don’t use the money and you decide to repurpose the money for you and your wife? Thanks in advance!

    Like

      Joel Schofer, MD, MBA, CPE responded:
      January 8, 2020 at 17:54

      529 are tax advantaged for money you KNOW will go toward educational expenses. If you are not sure, I don’t think there is anything wrong with skipping 529 plans and giving yourself some flexibility. For example, I actually stopped contributing to them 8 or so years ago once they allowed us to transfer the GI Bill to our kids. We have 2 kids and 2 GI Bills, so now I have 529 money I may need for grad school or may not need, in which case I can redesignate a new beneficiary who will use the money for educational expenses or pay a 10% penalty plus tax.

      Like

        Serena B said:
        January 9, 2020 at 11:00

        Thanks for the response, that helps a lot! I thought the penalty tax was a bit higher (in excess of 20% in some instances). Do 529 plans have different penalty taxes dictated by the state?

        Like

        Joel Schofer, MD, MBA, CPE responded:
        January 9, 2020 at 21:23

        I don’t think so. Verify the penalty with the state you use but I think it’s a 10% federal penalty.

        Like

    reefsecurities said:
    February 4, 2020 at 02:14

    Very nice article! I enjoyed a lot Reding it. Thanks for sharing.

    Like

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