Quote:
Originally Posted by jalexand42
I personally wouldn't put any of the 401k assets into bonds for two reasons: the fees on these suck and bond returns are horrible right now.
pedantically, i would say the bolded is market timing and flawed thinking, particularly for someone with a long horizon. diversification, efficient frontier, dry powder for rebalancing, yadda yadda. it's unlikely to matter much though, particularly since hero will have a small amount in fixed income until he's older.
actually a better option might be to buy bonds in the roth. yeah i like this better.
i'm not going to pull all the actual numbers together without some help but how about something like:
Roth 20%
20% TBM (or 10-15% TBM and 5-10% TSM)
401k 40%
32.5% TAP Stk Index
7.5% Vanguard Small Cap
Taxable 40%
20% TSM
20% TISM
this gives 80% equities/20% fixed income with 33% of equities in international.
all of that said, i'm also fine with the "just buy target date funds everywhere" strategy, especially as a first step. simplicity is worth a lot.
Quote:
Originally Posted by tyler_cracker
I also think i'd suck up the tax hit in favor of the instant diversification of the TR fund (or suck up the complexity and do a 3-fund portfolio).
ETA: in case i wasn't clear, jalexand and i are in agreement on basically everything here.
Last edited by tyler_cracker; 08-21-2013 at 01:30 AM.
Reason: SHOW OF SOLIDARITY IMO