Portfolio insight


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:

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:

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!!

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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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:

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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