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  1. #1

    Rate/Balance My Taxable Porfolio

    So it has been almost a year since I started taxable investing. Please take a look to see if my portfolio is balanced or too risky for my age. Currently I don't think it's very well balanced since I have significant exposure to crowd funding investments which is too new to tell.

    Everything you see here are in my taxable account

    1. Vanguard Financial ETF: 12k
    2. Vanguard Mid Cap Growth: 10k
    3. Vanguard S&P Small Cap: 6.2k
    4. Vanguard Total Stock Market: 16k

    Muni Bonds
    1. Vanguard High Yield Tax Exempt Fund: 8k

    Individual Stocks: 29k

    Preferred Stocks: 7.5k

    Crowd Funding
    1. Lending Club: 7.5k
    2. Peer Street: 72k

    Risk Tolerance is High, tax bracket: 33%

    Please let me know if there are alarming red flags to reduce unnecessary risk. I am new to investing myself. Spent the last 10 years letting the 401k do its own thing.

  2. #2
    Risk is an incredibly personal decision and comfort level can be different for everyone, I think the most important thing is to stay the course once you have a plan, I have been investing in a taxable account for 5 years and recently increased my muni bond holding so my asset allocation looks like this at 36 (105 minus age in stock):

    38% VTSAX Total US Stock
    31% VTIAX Total International Stock
    31% VWIUX Intermediate Term Tax Exempt Muni

    I prefer having Total US Stock vs different large/mid/small funds for simplicity.

    I like having International Stock weighting to its market percentage. If the Vanguard Total World fund was as cheap as its components I would have it instead.

    I also prefer the intermediate term fund over the high yield because the principal shouldn't go down as much when interest rates rise.

    I was previously at 120 minus age in stock.

  3. #3
    It would be hard to say if this is out of line for your asset allocation for 3 reasons:

    1. I assume this is only part of your overall asset allocation. Maybe you have a large cash position or maybe 100% stocks in your retirement fund?

    2. What is your desired asset allocation?

    3. We don't know what this money is to be used for/what is the time horizon? Is it your EF? If it is your EF (and your only source of emergency funds), then I would say--Yes, too risky. Is it for retirement? Maybe not--see 1. and 2. above.

  4. #4
    I agree with all of this. There's no context in which to evaluate what you've posted. We need more info.

    If you looked at my wife's Roth, you would think she was nuts as it is 100% bonds. However, it's only a small portion of our overall portfolio. You need to look at the big picture to know if this piece of your portfolio makes sense.

  5. #5
    Given your ability to save, you would probably be fine going 60:40. Reason being that you don't need to expose yourself to as much risk since you save 100k+ each year (if my memory is right).


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