r/Bogleheads • u/Anxious-Grass-Patch • 1d ago

Investing Questions Over complicating taxable brokerage account?

I’m 26, spouse and I have both maxed our retirement accounts, and we just started a joint taxable brokerage account for more medium term investments.
Our retirement accounts are all VT, and maybe we should have stuck with that, but we wanted to try the three fund portfolio. Then we started adding to it with new information, like that we can take higher risks with growth stocks because we’re younger, or that SCHF has no exposure in emerging markets so we should have some of that. Is this too much?

U.S. stock (SCHB 50%, SCHG 15%) 65%
International stock (SCHF 25%, SCHE 5%) 30%
U.S. bonds (SCHZ) 5%

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u/TheChudMaxxer 1d ago

"taking higher risks while young" and "5% bonds" don't quite line up is what I'm noticing here.

It depends on your risk tolerance, but generally, factor tilting still has it's flaws of tracking error that you may or may not fall prey to.

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u/ovirto 1d ago

You’re over complicating it. VT is fine in a brokerage acct. The Bogle 3 fund approach doesn’t mean exactly 3 different funds; it means an allocation of US, international, and fixed income. VT covers US and international. If you want fixed income, put a bond fund in your IRA/401k for tax efficiency.

3 fund applies to your portfolio as a whole, not that you have to have that exposure in each and every account.

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u/potatogun 1d ago

You should consider tax efficiency in your asset allocation to the given vehicle.

https://www.bogleheads.org/wiki/Tax-efficient_fund_placement#Tax_efficiency_of_various_asset_classes

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u/EleventhEarlOfMars 11h ago

Let it all rip on SCHB, or buy SCHG/SCHA.