Portfolio insight

Investing
#1

Hello,

I have a few question on my portfolio strategy as I am doing my annual review and getting ready to max out 2023 IRA. :blush:

Background:
401K: Company sponsored 2055 Target Date Index Fund. I meet the company match.

Roth IRA: I set my first IRA up in 2021 so I’ve been working through optimal investing strategy… I initially started with a Total Market Fund, then decided to go the S&P 500 Route.
In 2022 I started following PFC, and learned that TDIF are better suited for say 401K or IRA accounts (VS brokerage) so in 2022 I bought all shares in TDIF 2060 ETFs

  • FDKLX Target Date 2060 405 Shares Cheaper- 14.82/share
  • FSKAX Total Market Fund 1.6 Shares 119/share
  • FXAIX- S&P 500 38 Shares 154/share

Brokerage: VTI and chill

HSA: Not invested yet, I meet the cash threshold amount to invest. HSA is next on the list to research :slight_smile:

Questions:
I feel like all 3 tickers in my IRA are the same, and there isn’t much of a need to hold all 3. Should I convert FSKAX and FXAIX to FDKLX Target Date Index fund? Then for 2023 max out with the same TDIF?

Does the overall portfolio make sense? I am being very aggressive with my brokerage, hoping the bonds in 401K and IRA will balance things out.

Thank you!!
Beth

#2

Hi Beth! Thank you for breaking down all the details. You are doing a great job and I love how intentional you are with your personal finances!

To answer your second question, tour overall portfolio makes a lot of sense to me. As far as your first question, your Roth IRA has a good amount of overlap in the three funds that you hold. For example, FDKLX contains the total US stock market inside of it. And FSKAX has the S&P 500 inside of it! So is there a point to hold all three? Not really. It’s not a bad thing though. But to simplify it and not have to worry about rebalancing over time, I would consider just holding the TDF inside the Roth IRA!

I hope this helps! Keep us posted with any other questions!

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#3

Thank you!! That is helpful, I will keep on the path!
The only thing now is do I make the effort to consolidate the funds in the IRA? Or just go forward only buy the TDIF and leave the other funds as is?

I found this post and picture which describes what you’re saying above:

#4

Hi @AriMoon! Awesome! I don’t have a strong view on if you should consolidate or just invest future contributions in the TDF. I think either way will work perfectly and the difference between them is very slight. Since you are using a 2060 TDF, it’s primarily stocks already so having the two stock index funds won’t make much of a difference. If you like simplicity, i’d probably consolidate to only have one fund!

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