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Well ...

After posting about my consdieration to move a 401(k) to my Rollover IRA at Vanguard (http://boards.fool.com/Message.asp?mid=24923981), I started thinking about how my retirement assets are allocated. I had played around with Vanguard's allocation information before, but not in too much depth. Plus, I had not recorded any oustide investments (my two 401(k) accounts outside Vanguard).

Today I entered those outside investments (one at NYLife Investment Management and one at T. Rowe Price) and took a deeper look at the Portfolio Allocation tool on the Vanguard website. I was impressed!

If you have an account at Vanguard, I'd certainly suggest taking a look. Other places probably have similar tools, but I'm not sure how in depth they go. Vanguard's is pretty good.

Here is the current make-up of all of my retirement accounts.

FACTS
* I am 34 years old
* My compensation is just under $100K
* I currently contribute 5% to my 401(k) and receive a 3% match.
* I intend to maximize my Roth IRA contribution in 2007.
* My total retirement portfolio consists of the following:
* 401(k) w/current employer (held at T. Rowe Price)
* 401(k) w/former employer (held at NYLife)
* Roth IRA (held at Vanguard)
* Rollover IRA (held at Vanguard)
* I currently own the following funds:
.
CURRENT 401(k)
Oakmark Interational I (OAKIX)
TRP Equity Index 500 (PREIX)
TRP Equity Income (PRFDX)
TRP Small-Cap Value (PRSVX)
TRP Mid-Cap Growth (RPMGX)
.
FORMER 401(k)
MainStay S&P 500 Index (MSXAX)
Davis NY Venture (NYVTX)
American Funds EuroPacific Growth (RERCX)
American Funds Growth Fund of America (RGACX)
.
ROTH IRA
Vanguard Target Retirement 2035 (VTTHX)
.
ROLLOVER IRA
Vanguard Target Retirement 2035 (VTTHX)

My portfolio is currently allocated as follows:

U.S. Large-cap Stock - 57.1%
U.S. Mid-cap Stock - 17.1%
U.S. Small-cap Stock - 9.2%
Europe Stock - 8.7%
Pacific Stock - 4.8%
Canada Stock - 0.3%
Emerging Markets Stock - 2.1%
Long-term Bonds - 1.1%
Mid-term Bonds - 2.5%
Short-term Bonds - 3.0%

What do you think of this current allocation? I'm thinking (as I previously posted) of increasing my allocation to U.S. small caps or, perhaps, international. If I move 100% of my former 401(k) to the Vanguard Small Cap Index for example, my allocations would change as follows:

U.S. Large-cap Stock - 32.6% (-24.6)
U.S. Mid-cap Stock - 13.3% (no change)
U.S. Small-cap Stock - 35.6% (+28.5)
Europe Stock - 7.0% (-1.7)
Pacific Stock - 3.3% (-1.5)
Canada Stock - 0.0% (-0.3)
Emerging Markets Stock - 1.7% (-0.4)
Long-term Bonds - 1.1% (no change)
Mid-term Bonds - 2.5% (no change)
Short-term Bonds - 3.0% (no change)

The only aspect I don't like is that this scenario may overweight to U.S. small caps. It also takes nearly 4% away from international.

A second option is to move $10,000 to the Small Cap fund and the rest to VTTHX. This scenario would produce the following allocations:

U.S. Large-cap Stock - 37.0% (-20.2)
U.S. Mid-cap Stock - 19.1% (+1.8)
U.S. Small-cap Stock - 26.8% (+19.7)
Europe Stock - 8.0% (-0.8)
Pacific Stock - 3.8% (-1.0)
Canada Stock - 0.0% (-0.3)
Emerging Markets Stock - 1.9% (-0.1)
Long-term Bonds - 1.3% (+0.2)
Mid-term Bonds - 2.9% (+0.3)
Short-term Bonds - 3.4% (+0.4)

This scenario creates better U.S. stock allocations, but raises my allocation to bonds by nearly 1%.

Thoughts?


CPAScott
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