What we own? Asset Allocation

I always liked Jim Collins’s what we own and why we own it blog posts. So in that vein, here is the Mr. & Mrs. Dress Pockets breakdown excluding cash and 529 college savings. Overall our Simple Path to Wealth portfolio has two primary components: VTSAX and VBTLX (or their many equivalents). Keep it simple stupid. Thanks Uncle Jim!

The bonds are held primarily in tax deferred 401k and 403b buckets. The Roth IRA and HSA accounts are more equity aggressive to concentrate tax free growth. It took me awhile to figure out I could balance asset allocation in aggregate instead of in each bucket separately.

Betterment has been kept as a hedge to make sure my 98% US market bias isn’t leading us astray. Betterment has also provided an education in asset location and tax loss harvesting. Betterment’s timing of automatic deposits, dividends and a change from quarterly to monthly fees irked me into closing my Betterment taxable brokerage in March 2021. This relatively small amount of money was used to pay down the mortgage and tax loss harvesting nearly offset all the gains. Looking back I followed Mrs. Dress Pockets to Betterment out of fear of missing out 😉 I still follow fintech more than I should. Robinhood, Acorns Round-Ups, M1 Finance, oh my.

Overall allocation: pie chart thanks to Financial Engines the only place I currently have a combined view of our investments.

Allocation percentages below are respective to each investment account bucket.

• Mr. Fidelity 401k
  • Total Stock Market Fund 72%
  • Total Bond Market Fund 28%

• Mr. Vanguard Roth IRA
  • VTSAX 100%

• Mrs. Fidelity 403b
  • VITPX (institutional VTSAX) 84%
  • FXNAX and VBLIX (bonds) 16%

• Mrs. Fidelity 457b
  • VITPX 100%

• Mr. & Mrs. Joint Vanguard Brokerage (after tax)
  • VTSAX 100%

• Mr. Fidelity HSA
  • FSKAX 47% (auto investing all future HSA contributions)
  • VTI 53% (purchased in a poor attempt to time the market, auto investing not available)

• Mrs. Betterment Roth IRA
  • US stock ETFs 19.8% (VTI, VTV, VOE, VBR)
  • International stock ETFs 34.6% (VEA, VWO)
  • Bond ETFs 4% (VTIP, AGG, BNDX, EMB)

• Mrs. Betterment Brokerage (after tax)
  • US stock ETFs 28% (VTI, ITOT, VTV, SCHV, VOE, VBR, IWN)
  • International stock ETFs 2.4% (VEA, IEFA, SCHF, VWO)
  • Bond ETFs 11.2% (VTIP, MUB, TFI, AGG, BNDX, EMB, VWOB)

Note: The two Betterment accounts are grouped together using their tax coordinated portfolio feature: Stock ETFs 84%, Bond ETFs 16% (auto adjusted based on account owner age)