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Portfolio Review

edited January 2014 in Fund Discussions
I lurked on Fund Alarm and visit MFO a couple of times a week. All of our mutual funds are between Vanguard and TRP. The only which is not in our Roth IRA is the Star fund as I use this for a savings account because CD's don't pay much. My wife and I are both 51 and contribute the max amount to the IRA's each year by Dollar Cost Averaging. We both contribute to 401K up to match. I'm retired from the Air Force so I receive a pension check each month and we both work full time. Our portfolio returned 7.72% in 2013 and I do all my own investing. When the market turned down in 2008 and later, I continued to invest in these funds and had I think in my view a good end of year reinvestment for 2013 for St & Lt Cap gains and dividends.

Looking for feedback and possible changes that I could make on my own to increase growth. According to different retirement calculators, I am on the right path to ensuring I have money when it comes to retirement age, whenever that may be. The numbers represented is the percentage of the portfolio where the money is allocated.

Kind Regards John.

PRLAX 4 TRP Latin America
VFSVX 3 Vanguard FTSE All-Wld ex-US SmCp Idx Inv
VGXRX 4 Vanguard Global ex-US Rel Est Idx Inv
TRAMX 6 T. Rowe Price Africa & Middle East
VEMAX 3 Vanguard Emerging Mkts Stock Idx Adm
VEUSX 4 Vanguard European Stock Index Adm
VHDYX 5 Vanguard High Dividend Yield Index Inv
PRMTX 5 T. Rowe Price Media & Telecommunications
PRGTX 5 T. Rowe Price Global Technology
VGSIX 4 Vanguard REIT Index Inv
PRNEX 8 T. Rowe Price New Era
PRHSX 9 T. Rowe Price Health Sciences
PRWCX 4 T. Rowe Price Capital Appreciation
VWELX 5 Vanguard Wellington Inv
VGSTX 6 Vanguard STAR Inv
VWINX 8 Vanguard Wellesley Income Inv
PRSVX 5 T. Rowe Price Small-Cap Value
PRFDX 4 T. Rowe Price Equity Income
VMGMX 4 Vanguard Mid-Cap Growth Index Admiral
VGAVX 4 Vanguard Emerg Mkts Govt Bd Idx Admiral

Comments

  • I will leave the picking of any newer funds to the experts here but the one thing that stands out to me is that you have a lot of sector funds. At age 51, I would simplify by reducing the number of funds starting with some of the sector funds. PRLAX and TRAMX are pretty volatile. You already have emerging markets in VEMAX. PRMTX probably has stocks you already have in other funds. While I like health sciences, I would pare back PRHSX to 5%. You can exchange those funds into the other ones. VEUSX might be another one to think about. I'm sure it is covered with your global funds. That would be a start and I would be comfortable with ten funds that your allocation is spread around. Looks like you have about twenty right now.
  • Dearjafink63: I really am working against my own interest as a holder of TROW, but let's cut this down to eight funds, with about 12% in each.
    Regards,
    Ted
    PRLAX 4 TRP Latin America- Sell
    VFSVX 3 Vanguard FTSE All-Wld ex-US SmCp Idx Inv-Sell
    VGXRX 4 Vanguard Global ex-US Rel Est Idx Inv-Sell
    TRAMX 6 T. Rowe Price Africa & Middle East-Sell
    VEMAX 3 Vanguard Emerging Mkts Stock Idx Adm- Keep
    VEUSX 4 Vanguard European Stock Index Adm-Keep
    VHDYX 5 Vanguard High Dividend Yield Index Inv-Sell
    PRMTX 5 T. Rowe Price Media & Telecommunications-Sell
    PRGTX 5 T. Rowe Price Global Technology-Keep
    VGSIX 4 Vanguard REIT Index Inv-Sell
    PRNEX 8 T. Rowe Price New Era-Sell
    PRHSX 9 T. Rowe Price Health Sciences- Keep
    PRWCX 4 T. Rowe Price Capital Appreciation-Keep
    VWELX 5 Vanguard Wellington Inv-Keep
    VGSTX 6 Vanguard STAR Inv-Sell
    VWINX 8 Vanguard Wellesley Income Inv-Sell
    PRSVX 5 T. Rowe Price Small-Cap Value-Keep
    PRFDX 4 T. Rowe Price Equity Income-Sell
    VMGMX 4 Vanguard Mid-Cap Growth Index Admiral-Keep
    VGAVX 4 Vanguard Emerg Mkts Govt Bd Idx Admiral-Sell
  • PRLAX 4 TRP Latin America ( Sell )
    VFSVX 3 Vanguard FTSE All-Wld ex-US SmCp Idx Inv ( Sell )
    VGXRX 4 Vanguard Global ex-US Rel Est Idx Inv ( Sell )
    TRAMX 6 T. Rowe Price Africa & Middle East ( Sell )
    VEMAX 3 Vanguard Emerging Mkts Stock Idx Adm ( Keep )
    VEUSX 4 Vanguard European Stock Index Adm ( Sell )
    VHDYX 5 Vanguard High Dividend Yield Index Inv ( Sell )
    PRMTX 5 T. Rowe Price Media & Telecommunications ( Sell )
    PRGTX 5 T. Rowe Price Global Technology ( Sell )
    VGSIX 4 Vanguard REIT Index Inv ( Keep )
    PRNEX 8 T. Rowe Price New Era ( Sell )
    PRHSX 9 T. Rowe Price Health Sciences ( Keep )
    PRWCX 4 T. Rowe Price Capital Appreciation ( Keep )
    VWELX 5 Vanguard Wellington Inv ( Sell )
    VGSTX 6 Vanguard STAR Inv ( Keep )
    VWINX 8 Vanguard Wellesley Income Inv ( Keep )
    PRSVX 5 T. Rowe Price Small-Cap Value ( Keep )
    PRFDX 4 T. Rowe Price Equity Income ( Sell )
    VMGMX 4 Vanguard Mid-Cap Growth Index Admiral ( Keep )
    VGAVX 4 Vanguard Emerg Mkts Govt Bd Idx Admiral ( Sell )

    ARTGX ( Add )
    MACSX ( Add )
    PONDX ( Add )

    I would use VGSTX, PRWCX, and VWINX as your core positions around 10-20% each. Use the other funds ( as your risk tolerance allows ) to build yourself a well rounded portfolio. Of course, this is all based on my opinion.
  • beebee
    edited January 2014
    With VGSTX you actually own all of these funds as well:
    image

    Funds that have preformed similarily over 3, 5 & 10 year time frames I would consider correlated. I would say VGSTX and VWELX could easily be combine with Ted choice being my nod as well...so just merge VGSTX into VWELX. VWINX provides a little better downside protection, but at the expense of upside potential. Here again, the nod goes to VWELX over longer time frames:
    image

    I agree with Ted that a midcap index can provide some added octane to your portfolio. I monitor my midcap fund (like VHCOX) as it move above and below my steady eddy fund...in this case VWELX. Add to your midcap when it is lagging VWELX and take profits when it's out performing VWELX...exchanging between these two funds works nicely as a method of strategic reallocation. Which basically mean pay attention to the performance rather than a pre-set timeframe (periodic reallocation). Here VHCOX and VWELX charted over ten years. As you can see VHCOX adds some octane. Take these strategic outperformances and add them to your Moderate Allocation fund (VWELX):
    image

    You can do this same chart exericise with PRWCX and your TRP funds. I like to use M* chart tool to compare funds over different time frames. Not sure your are getting much diversification by holding PRGTX and PRMTX...maybe choose one or the other. The same might be said for PRFDX and PRWCX...combine into PRWCX. Until you see it stumble, keep PRHSX...Ted will keep you up to date with this fund.

    Good luck with your fund diet.
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