How should I diversify this portfolio?
Current investment situation: 28 years old, and I have a Rollover IRA currently valued at $12.5k (all in VTI). I have a Roth IRA valued at $36.5k (51.12% VOO, 22.59% FXAIX, 12.33% VTI, 9.94% VXUS, 2.08% SPY, and 1.94% QQQ). Then, I have a 401k worth $125k all…
Current investment situation: 28 years old, and I have a Rollover IRA currently valued at $12.5k (all in VTI). I have a Roth IRA valued at $36.5k (51.12% VOO, 22.59% FXAIX, 12.33% VTI, 9.94% VXUS, 2.08% SPY, and 1.94% QQQ). Then, I have a 401k worth $125k all in WBRPSX. There's so much unnecessary overlap here. Anyways, I've been maxing my Roth and am on track to max my 401k this year. That said, I have way too much money sitting in HYSA (like over $200k). I need to start slowly building up a brokerage account because I'm not getting the return I should be getting. What do you recommend I purchase? VTI and VXUS at an 80-20 split? I plan on purchasing $X every week. Thanks in advance!
Collected discussion
https://www.bogleheads.org/wiki/Three-fund_portfolio something along the lines of that would make sense. given your age, the bond portion being at 0% would be reasonable. the world market cap generally floats somewhere between 65/35 and 60/40 US/International, so being in that ballpark would make sense. If you want really simple, you can just buy VT. And before you start investing in a taxable brokerage, are you fully maxing all of your tax advantaged space (workplace plans like 401k/403b/TSP, personal plans like an IRA and HSA if you have an eligible insurance plan)? if not, start by filling that (and using the cash you have on hand to fill in the missing money from your budget). If those are all full (or have a plan to be full by the end of the year), then taxable investing makes sense.
how have you been able to save so much by 28? Wow!
honestly the fund overlap barely matters, voo vti fxaix spy are just the same us large cap five times over, redundant but pretty harmless. the thing actually screaming off the page is the 200k+ sitting in a hysa. thats the real drag, not which S&P clone you happen to own. id honestly worry way more about the pace youre moving that cash off the sidelines than about nailing a perfect 80/20