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Please help! Lazy Portfolio for 30 years old?

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  • Please help! Lazy Portfolio for 30 years old?

    Hi, I’m 30 years old. I am currently a resident doctor and I’m going into Cardiology fellowship. So it will take me another 4 years to start making some real money. As of now, I have maximized my Roth IRA for the year, my employer offer the 457 plan (unfortunately there is no matching there), and I’m on track to maximize the contribution there as well. Additionally, I have a personal brokage account with have some money in there as well. With my work load, I don’t have time to follow the market, so I have been reading about lazy portfolio, and I have decided to use Vanguard ETF for my investment. I plan to rebalance my portfolio every 6 months. I plan to retire around 60-65ish. Here are my allocations and the ETFs.

    + Bond BND 20%
    +Stock
    -US Large Cap VOO 16%
    Large Cap Value VTV 16%
    Small Cap VB 16%
    -International VXUS 16%
    -Reit VNQ 16%

    Do you think this portfolio is adequate or right for my age? I want to accumulate as much as possible up to age 45, then probably taper down then. What do you think, any suggestion would be appreciated.

    Thanks

  • #2
    You can probably get away with a 90% to 10% Stock, bond mix given your age and time horizon for retirement.
    Brian

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    • #3
      Consider a Couch Potato portfolio. They are made up of mostly Vanguard ETFs.

      Comment


      • #4
        Originally posted by bruingent View Post
        Hi, I’m 30 years old. I am currently a resident doctor and I’m going into Cardiology fellowship. So it will take me another 4 years to start making some real money. As of now, I have maximized my Roth IRA for the year, my employer offer the 457 plan (unfortunately there is no matching there), and I’m on track to maximize the contribution there as well. Additionally, I have a personal brokage account with have some money in there as well. With my work load, I don’t have time to follow the market, so I have been reading about lazy portfolio, and I have decided to use Vanguard ETF for my investment. I plan to rebalance my portfolio every 6 months. I plan to retire around 60-65ish. Here are my allocations and the ETFs.

        + Bond BND 20%
        +Stock
        -US Large Cap VOO 16%
        Large Cap Value VTV 16%
        Small Cap VB 16%
        -International VXUS 16%
        -Reit VNQ 16%

        Do you think this portfolio is adequate or right for my age? I want to accumulate as much as possible up to age 45, then probably taper down then. What do you think, any suggestion would be appreciated.

        Thanks
        I think it is a reasonable allocation for a 30 year old. The big decision is stock to bond. The second biggest is international. You've chosen 80/20 with 20% of equities in international. You're within standard Vanguard guidelines.

        Have you stumbled upon the Bogleheads Index Forum yet? For extremely thorough feedback ( ), you may wish to also ask your question there.

        Comment


        • #5
          Originally posted by Petunia 100 View Post
          Have you stumbled upon the Bogleheads Index Forum yet? For extremely thorough feedback ( ), you may wish to also ask your question there.
          Heehee ... yes, it can be overwhelming, even for a non-novice.

          Comment


          • #6
            I'd suggest you check out my site for portfolio management.

            Comment


            • #7
              Sick of feeling like you're being taken advantage of by the financial services industry just because you have a high income? Wondering what to do with your student loans or how to get a mortgage? Not sure how to buy disability insurance or how to invest your money? Here's a site written for doctors by a physician who wants you to be as successful in your finances as in your practice.


              I would give the site above a look also. He covers a number of doctor/resident specific issues such as disability insurance and the long line of people hoping to prey on your through junk strategies such as whole life.

              Comment


              • #8
                I'm glad to see the responses. I'm in a similar boat, just turned 30 and was financially able to start making non-retirement account investments (i.e. taxable accounts). After some soul searching and reading, I decided to go 80/20 in terms of stocks and bonds. Most of our other retirement accounts are in target funds, so our total allocation is probably more like 85/15 or so. Our bonds are in the total bond market (VBMFX) From that I divided the stock portion into total international (VGTSX) and total stock (VTSMX). My plan is to rebalance monthly, by, making my contribution to the appropriate fund(s) to maintain the 40/40/20 ratio. I want something relatively easy, cause I don't know that much. Originally I found the 3 fund lazy portfolio of 34/33/33, but I felt that was just too high in bonds for my age.

                Not sure if our way is the best way, just what we're doing right now. Good luck!

                Comment


                • #9
                  If you want something simple but with a high return, put a large chunk of your money in an S&P 500 Index Fund (Charles Schwab has a very good one). It's tough to beat this fund's return over a long investment period, and it's also tough to find a lower fee.

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