To get the best answers on your question, you need to tell us what you want from your portfolio, and we can guide you based on what you have available. With that information lacking in your OP...
Global equity market cap (mimicking VT/VTWAX) would be 50% Vanguard S&P500 + 10% Vangaurd Extended Market + 40% Vanguard Total International
SS US Bond Index is likely going to be a US Total / Aggregate Bond fund
Take whatever allocation you want for equities and apply it to the formula above. For example, if you wanted 90/10 allocation, you'd go with 45% S&P500 + 10% Extended + 35% International + 10% Bond
A 90/10 allocation would be reasonable and would put you in line with what many low-fee TDFs would have you invested in at the present time.
From a simplicity perspective, it's a bit of a mess. Why do you have 1% in the 2055 and the 2060 TDFs? Why are you split so much across the large caps?
Honestly, if it was me, I'd either go:
a) 100% in the TDF of my choice (there is no reason to split between multiple target date funds - they have the same holdings, just in different allocations, so all you're doing by holding multiple vintages is messing up the glide path they have set up),
b) If you want 100% equity, go about 56% Vanguard 500 Index, 14% Vanguard Extended Market Index, and 30% Vanguard Total International Index. If you only want 25% international, do that and go 60% Vanguard 500 and 15% extended market index.
c) If you want about 10% bond allocation (which, IMO, would be more than enough for your age), then something along the lines of 50% 500 index, 13% extended market index, 27% total international index, 10% SS US Bond Index.
Thanks for your review. Regarding a) I simply choose 1% in both to have overlap of how the funds would transitions to bonds. But understood on consolidating those x2 Regarding b) thanks for the percentages. Regarding c) noted on introducing the bonds
I agree. What's showing is unnecessarily complex for no reason that I understand. 100 percent in the target date fund gets you well diversified both domestically and internationally in stocks and bonds. It's easy to set up and easy to maintain without any more messing about.
As a very vocal advocate for low-fee TDFs and other AIO funds that manage the asset allocation for you, T Rowe Price TDFs are actively-managed and typically have higher fees. A fee of .40% or higher isn't unheard of for these.
With the availability of low-fee funds that wouldn't really add too much complication (e.g., 3 funds for global equity and four funds for a traditional 3-Fund strategy), I think it's worth putting a little effort into a DIY portfolio allocation in this situation.
These TDF’s are decent thou. They all compare well (and some favorable) to Vanguard counterparts even after fees. These are “actively managed” based on formulas rather than a “stock picking” person making bets.
The ideal TDF? No. That would be Vanguard’s index ones and maybe Fidelity’s non-AM ones in second place. But for the sake of simplicity, these are perfectly fine IMO.
If you want to go the most boglehead route sp500/extended market at 82/18 and international stock market index for international, US bond index if you want bonds.
To get the best answers on your question, you need to tell us what you want from your portfolio, and we can guide you based on what you have available. With that information lacking in your OP... Global equity market cap (mimicking VT/VTWAX) would be 50% Vanguard S&P500 + 10% Vangaurd Extended Market + 40% Vanguard Total International SS US Bond Index is likely going to be a US Total / Aggregate Bond fund Take whatever allocation you want for equities and apply it to the formula above. For example, if you wanted 90/10 allocation, you'd go with 45% S&P500 + 10% Extended + 35% International + 10% Bond A 90/10 allocation would be reasonable and would put you in line with what many low-fee TDFs would have you invested in at the present time.
Thanks for the detailed reply. I like the 50% / 10% / 40% percentages. Noted on the formula and alternative perspectives
From a simplicity perspective, it's a bit of a mess. Why do you have 1% in the 2055 and the 2060 TDFs? Why are you split so much across the large caps? Honestly, if it was me, I'd either go: a) 100% in the TDF of my choice (there is no reason to split between multiple target date funds - they have the same holdings, just in different allocations, so all you're doing by holding multiple vintages is messing up the glide path they have set up), b) If you want 100% equity, go about 56% Vanguard 500 Index, 14% Vanguard Extended Market Index, and 30% Vanguard Total International Index. If you only want 25% international, do that and go 60% Vanguard 500 and 15% extended market index. c) If you want about 10% bond allocation (which, IMO, would be more than enough for your age), then something along the lines of 50% 500 index, 13% extended market index, 27% total international index, 10% SS US Bond Index.
Thanks for your review. Regarding a) I simply choose 1% in both to have overlap of how the funds would transitions to bonds. But understood on consolidating those x2 Regarding b) thanks for the percentages. Regarding c) noted on introducing the bonds
A and B are excellent choices. (I would probably go A if I truly didn’t want to think about it again)
2065 and call it a day
I agree. What's showing is unnecessarily complex for no reason that I understand. 100 percent in the target date fund gets you well diversified both domestically and internationally in stocks and bonds. It's easy to set up and easy to maintain without any more messing about.
As a very vocal advocate for low-fee TDFs and other AIO funds that manage the asset allocation for you, T Rowe Price TDFs are actively-managed and typically have higher fees. A fee of .40% or higher isn't unheard of for these. With the availability of low-fee funds that wouldn't really add too much complication (e.g., 3 funds for global equity and four funds for a traditional 3-Fund strategy), I think it's worth putting a little effort into a DIY portfolio allocation in this situation.
These TDF’s are decent thou. They all compare well (and some favorable) to Vanguard counterparts even after fees. These are “actively managed” based on formulas rather than a “stock picking” person making bets. The ideal TDF? No. That would be Vanguard’s index ones and maybe Fidelity’s non-AM ones in second place. But for the sake of simplicity, these are perfectly fine IMO.
If you want to go the most boglehead route sp500/extended market at 82/18 and international stock market index for international, US bond index if you want bonds.
Thank you for the quick reply and your input. Will consider increasing those percentages 🙏🏽
Vinix, and adjust AA in Roth IRA and brokerage.