Newbie needs help with 403b
Posted: Mon Dec 17, 2012 9:46 pm
Hi all,
I am a new member but not new to Boglehead. I have been reading up on this forum for roughly 8 months now and have gone through wiki and few of rec reading materials. My wife recently got hired and that is going to change our financial situation in a sense that we can pay our debt somewhat aggressively and may be save some for retirement at the same time.
Emergency funds: 1- 2 months in Credit Union account
Debt:
Student loans:
Mine ( ~ 5600 at 5% private)
Hers:(~ 7000 at 8 % private, 16000 USD ~ at 11 % overseas student loan with early payment penalty)
Car loan - ~ 9800 Car @ 2% for 28 months remaining
Loan from a close relative ~ 65000 @ 0%, no need to pay it urgently but we are going to make some regular payment to return the favor.
Credit card - none
Currently renting, no plan to buy house in near future.
Tax filing status
Married filing jointly
Household income: 50k (until now) ---> mid70s (for both of us next year)
State tax: 5%
Age: 28 Mine /29 Hers
Desired Asset allocation: 80% stocks / 20% bonds
Desired International allocation: 30% of stocks
Current retirement assets
Taxable
none
His 401k no company match
none
His Roth IRA at Vanguard
100% VFIFX ER 0.19 (USD 3000 total invested roughly two years ago, has not gained or lost much overall).
Her 403b
Company match upto 5%
Available funds
Funds available in her 403(b)
Equities:
American Funds Capital World Growth and Income Fund RWIGX 0.45%/0.45%
American Funds Growth Fund of America RGAGX 0.33%/0.33%
Columbia Small Cap Value Fund CSCZX 1.10%/1.10%
Eaton Vance Large-Cap Value Fund 0.73%/0.73%
ING Global Real Estate Fund IGLIX 0.99%/0.99%-
Prudential Jennison Mid-Cap Growth Fund PEGZX 0.79%/0.79%
RidgeWorth Mid-Cap Value Equity Fund SMVTX 1.07%/1.07%
Sentinel Common Stock Fund SICWX 0.78%/0.78%
Sentinel Small Company Fund SAGWX 1.10%/1.10%
Thornburg International Value Fund TIVRX 1.04%/0.99%
TIAA-CREF Growth & Income Fund 0.62%/0.62%
TIAA-CREF International Equity Fund TREPX 0.68%/0.68%
TIAA-CREF International Equity Index Fund Premier TRIPX 0.24%/0.24%
TIAA-CREF Large-Cap Value Fund Premier TRCPX 0.62%/0.62%
TIAA-CREF Large-Cap Value Index Fund Institutional TILVX 0.08%/0.08%
TIAA-CREF Mid-Cap Growth Fund—Premier TRGPX 0.64%/0.64%
TIAA-CREF Mid-Cap Value Fund—Premier TRVPX 0.61%/0.61%
TIAA-CREF S&P 500 Index Fund—Institutional TISPX 0.07%/0.07%
TIAA-CREF Small-Cap Blend Index Fund—Institutional TISBX 0.15%/0.15%
TIAA-CREF Social Choice Equity Fund—Premier TRPSX 0.34%/0.34%
Real Estate
Variable annuity
TIAA Real Estate Account (no ticker number) 0.92%/0.92% --
Fixed Income
Variable annuity
1)CREF Bond Market Account 0.45%/0.45% --
2)CREF Inflation-Linked Bond Account 0.45%/0.45% --
Mutual fund
PIMCO Total Return Fund—Institutional PTTRX 0.46%/0.46%
Money market
Variable Annuities
CREF Money Market Account 0.42%/0.42%
Multiasset
JP Morgan Investor Balanced fund - Select OIBFX 1.42%/1.23%
TIAA CRED Life Cycle 2010 TCTPX 0.69%/0.54%
TIAA CRED Life Cycle 2015 TCFPX 0.71%/0.56%
TIAA CRED Life Cycle 2020 TCWPX 0.72%/0.57%
TIAA CRED Life Cycle 2025 TCQPX 0.73%/0.58%
TIAA CRED Life Cycle 2030 TCHPX 0.74%/0.59%
TIAA CRED Life Cycle 2035 TCYPX 0.75%/0.60%
TIAA CRED Life Cycle 2040 TCZPX 0.75%/0.60%
TIAA CRED Life Cycle 2045 TTFPX 0.80%/0.61%
TIAA CRED Life Cycle 2050 TCLPX 0.85%/0.61%
TIAA CRED Life Cycle 2055 TTRPX 1.39%/0.62%
TIAA CRED Life Cycle Retirement Income Fund TIRPX 0.77%/0.53%
Questions:
1. What funds you will advise us we should pick for her 403b. Because of 5% company match, we want to invest aleast that much towards 403b. Rather than picking up one of life cycle fund for example, 2040; I think it would be good learning experience to pick up fund and rebalance as needed to get some experience with small amounts.
I was thinking following allocation:
20% PIMCO Total Return Fund—Institutional PTTRX 0.46%/0.46%
20% International Equity Index Fund Premier TRIPX 0.24%/0.24%
60% TIAA-CREF S&P 500 Index Fund—Institutional TISPX 0.07%/0.07%
Greatly appreciate your comments on what am I missing, alternative approaches and anything else
Let me know if I can provide with any additional information. Thank you.
Darkhorse
I am a new member but not new to Boglehead. I have been reading up on this forum for roughly 8 months now and have gone through wiki and few of rec reading materials. My wife recently got hired and that is going to change our financial situation in a sense that we can pay our debt somewhat aggressively and may be save some for retirement at the same time.
Emergency funds: 1- 2 months in Credit Union account
Debt:
Student loans:
Mine ( ~ 5600 at 5% private)
Hers:(~ 7000 at 8 % private, 16000 USD ~ at 11 % overseas student loan with early payment penalty)
Car loan - ~ 9800 Car @ 2% for 28 months remaining
Loan from a close relative ~ 65000 @ 0%, no need to pay it urgently but we are going to make some regular payment to return the favor.
Credit card - none
Currently renting, no plan to buy house in near future.
Tax filing status
Married filing jointly
Household income: 50k (until now) ---> mid70s (for both of us next year)
State tax: 5%
Age: 28 Mine /29 Hers
Desired Asset allocation: 80% stocks / 20% bonds
Desired International allocation: 30% of stocks
Current retirement assets
Taxable
none
His 401k no company match
none
His Roth IRA at Vanguard
100% VFIFX ER 0.19 (USD 3000 total invested roughly two years ago, has not gained or lost much overall).
Her 403b
Company match upto 5%
Available funds
Funds available in her 403(b)
Equities:
American Funds Capital World Growth and Income Fund RWIGX 0.45%/0.45%
American Funds Growth Fund of America RGAGX 0.33%/0.33%
Columbia Small Cap Value Fund CSCZX 1.10%/1.10%
Eaton Vance Large-Cap Value Fund 0.73%/0.73%
ING Global Real Estate Fund IGLIX 0.99%/0.99%-
Prudential Jennison Mid-Cap Growth Fund PEGZX 0.79%/0.79%
RidgeWorth Mid-Cap Value Equity Fund SMVTX 1.07%/1.07%
Sentinel Common Stock Fund SICWX 0.78%/0.78%
Sentinel Small Company Fund SAGWX 1.10%/1.10%
Thornburg International Value Fund TIVRX 1.04%/0.99%
TIAA-CREF Growth & Income Fund 0.62%/0.62%
TIAA-CREF International Equity Fund TREPX 0.68%/0.68%
TIAA-CREF International Equity Index Fund Premier TRIPX 0.24%/0.24%
TIAA-CREF Large-Cap Value Fund Premier TRCPX 0.62%/0.62%
TIAA-CREF Large-Cap Value Index Fund Institutional TILVX 0.08%/0.08%
TIAA-CREF Mid-Cap Growth Fund—Premier TRGPX 0.64%/0.64%
TIAA-CREF Mid-Cap Value Fund—Premier TRVPX 0.61%/0.61%
TIAA-CREF S&P 500 Index Fund—Institutional TISPX 0.07%/0.07%
TIAA-CREF Small-Cap Blend Index Fund—Institutional TISBX 0.15%/0.15%
TIAA-CREF Social Choice Equity Fund—Premier TRPSX 0.34%/0.34%
Real Estate
Variable annuity
TIAA Real Estate Account (no ticker number) 0.92%/0.92% --
Fixed Income
Variable annuity
1)CREF Bond Market Account 0.45%/0.45% --
2)CREF Inflation-Linked Bond Account 0.45%/0.45% --
Mutual fund
PIMCO Total Return Fund—Institutional PTTRX 0.46%/0.46%
Money market
Variable Annuities
CREF Money Market Account 0.42%/0.42%
Multiasset
JP Morgan Investor Balanced fund - Select OIBFX 1.42%/1.23%
TIAA CRED Life Cycle 2010 TCTPX 0.69%/0.54%
TIAA CRED Life Cycle 2015 TCFPX 0.71%/0.56%
TIAA CRED Life Cycle 2020 TCWPX 0.72%/0.57%
TIAA CRED Life Cycle 2025 TCQPX 0.73%/0.58%
TIAA CRED Life Cycle 2030 TCHPX 0.74%/0.59%
TIAA CRED Life Cycle 2035 TCYPX 0.75%/0.60%
TIAA CRED Life Cycle 2040 TCZPX 0.75%/0.60%
TIAA CRED Life Cycle 2045 TTFPX 0.80%/0.61%
TIAA CRED Life Cycle 2050 TCLPX 0.85%/0.61%
TIAA CRED Life Cycle 2055 TTRPX 1.39%/0.62%
TIAA CRED Life Cycle Retirement Income Fund TIRPX 0.77%/0.53%
Questions:
1. What funds you will advise us we should pick for her 403b. Because of 5% company match, we want to invest aleast that much towards 403b. Rather than picking up one of life cycle fund for example, 2040; I think it would be good learning experience to pick up fund and rebalance as needed to get some experience with small amounts.
I was thinking following allocation:
20% PIMCO Total Return Fund—Institutional PTTRX 0.46%/0.46%
20% International Equity Index Fund Premier TRIPX 0.24%/0.24%
60% TIAA-CREF S&P 500 Index Fund—Institutional TISPX 0.07%/0.07%
Greatly appreciate your comments on what am I missing, alternative approaches and anything else
Let me know if I can provide with any additional information. Thank you.
Darkhorse