• Planning the Joint Retirement Portfolio: December 2007 Update

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    This is part 5 of our Planning the Joint Retirement Portfolio series. See what we went out to do here, how we got our magic number (part 1), assessed our portfolio back then (part 2), the big picture of our portfolio (part 3), and then a detailed plan allocation (part 4).

    It has been almost a year since we’ve started the joint retirement portfolio series, and almost 6 months since we’ve last looked at our joint retirement portfolio. Since then, we’ve done many changes to get it to our model portfolio. We’ve sold some, bought some, and cleaned things up a little. Our current asset allocation is depicted in the pie chart below.

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    Compared to our model portfolio, we’re still not quite there yet.

    When we first started this exercise, we showed you what was in our portfolio. Here are the detailed holdings in our portfolio as of today.

    FundTicker% of Portfolio
    TOTAL99.9%
    Roth IRA (Vanguard)
    AmerenAEE0.9%
    BoeingBA0.5%
    General MotorsGM0.6%
    Northern TrustNTRS1.3%
    PrologisPLD1.0%
    Vanguard Total Bond Market IndexVBMFX13.7%
    TOTAL PERCENTAGE OF PORTFOLIO ASSETS18%
    Roth IRA (Fidelity)
    Fidelity Real Estate InvestmentFRESX7.7%
    Fidelity Small Cap ValueFCPVX8.5%
    TOTAL PERCENTAGE OF PORTFOLIO ASSETS16.2%
    401(k)
    AllianceBernstein International Value Fund (A)ABIAX11.7%
    Dreyfus Premier S&P STARS Opportunity Fund (R)DSORX7.1%
    Fidelity Advisor Small Cap Fund (T)FSCTX6.9%
    Neuberger Berman Socially Responsive Fund (Investor)NBSRX2.7%
    STI Classic Small Cap Value Equity ISCETX11.2%
    TOTAL PERCENTAGE OF PORTFOLIO ASSETS39.6%
    SIMPLE IRA (Vanguard)
    Vanguard Target Retirement 2045VTIVX26.1%
    TOTAL PERCENTAGE OF PORTFOLIO ASSETS26.1%

    The remaining 0.1% is cash that is floating around in some of the accounts.

    We made most of the changes to our portfolio last summer. We now plan on reassessing our target allocations every six months or so, and then adjusting if necessary. Much of the difficulty of getting a cohesive portfolio is balancing the available account in each of our brokerage accounts, namely Her’s 401(k). Another obstacle is the minimums required to invest in many mutual funds at Fidelity or Vanguard. In order to get around that, we’re currently looking at ETFs; that is not looking like an attractive option due to the high trading fees relative to our balances at Fidelity and Vanguard.

    We welcome your comments and suggestions on our current portfolio.

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