Personal Investments • Re: Portfolio review request - Finally above water!

1. Roth IRA Allocation: Should I hold only stocks in my Roth IRA to maximize tax-free growth? Should I stop buying bonds in this account?

That would be in adherence with Tax-Efficient Fund Placement, so that would be my recommendation, despite not looking at your holdings in detail. Roth and Taxable at 100% stocks, with bonds & cash (and the balance of stocks in Trad Tax-Deferred accounts, if possible (it's not always possible).

2. Inherited IRA MMFs: How should the MMF in my inherited IRA be invested? Should I consolidate all bonds into the inherited IRA and use the remaining MMF cash to buy stocks?

I would split the cash among US stock (SPTM), Int'l Stock (SPDW), and Bonds (SPAB) such that when you zero the cash, your overall portfolio across all accounts meets your 80/20 asset allocation (AA) with 20% of stocks in int'l (if you go <20%, just go with 0% as it's not enough to "move the needle").

3. Taxable Brokerage MMFs: Should I invest all MMFs in my taxable brokerage accounts into stocks for tax efficiency?

Generally yes, as noted in #1 above. However, if you need the cash for spending or some other purpose (like pre-paying that moderately high-rate mortgage note), then no. See Prioritizing Investments.

4. Asset Placement Optimization: What else should I consider when optimizing asset placement across accounts?

See #1 above for the Wiki link on tax-efficient placement.

5. Rebalancing Across the Portfolio: How should I approach rebalancing my AA across the entire portfolio?

Here's what I see for 80/20 with 20% int'l in your Current holdings along with a Proposal to simplify from 16 holdings down to 7 (includes consolidating the $1.9K Schwab Taxable over to Fido Taxable), eliminate the Wash Sale issue with SPDR Portfolio S&P 1500 (SPTM) in Taxable and in tax-advantaged accounts, and perfectly match your target AA.



A template spreadsheet (not your data) to do this kind of assessment and rebalance planning is linked below.
Asset Allocation Sheet
AA Current and Proposed

6. Cash and AA: Should all my cash holdings be included in my AA? Does it make sense to treat cash as part of the "bond" side of my AA? What factors should I consider to decide how much cash to hold?

Cash that is not for your retirement portfolio (e.g., your emergency fund, new car fund, home repair/upgrade fund), should NOT be included in the AA assessment and rebalance for your retirement portfolio.

7. Life Insurance Proceeds: Should I invest the $200K life insurance proceeds into the 3-fund portfolio and/or use some for remodeling to accelerate rental income?

See #3 above for the Wiki link on prioritizing investments (I'd probably use the $200K cash to pay down the mortgage note, if you're already getting the full employer match in your 401k (if any since you didn't list one in your retirement portfolio accounts)).

Statistics: Posted by bonesly — Thu Jan 16, 2025 3:04 pm

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