Moving 401k to Schwab

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Moving 401k to Schwab

Postby rsgdmd » Sun Dec 30, 2012 3:17 pm

I'm new to this board, but not to investing. I used to have my office's 401k/profit share plan with AXA-Equitable (thru an association) and just switched to an Schwab, using a separate administrator, who will also do recordkeeping. Reason for the move was to save money on expenses (AXA took 0.5% to run the plan in addition to ERs), move plan expenses to business expenses, and to have better, less costly options. So, I've got 750K to now invest. My thoughts were to go with combo of ETFs and funds. BTW, I'm 54 and have another almost 500k in old IRAs, SEP and Roth's, 70/30 equity/bonds).
So, my thoughts were 40% bonds, 60% equities.
For bonds:
BOND (PIMCO total return ETF) -20%
SCHP (Schwab TIPS ETF) - 10%
CIU (Intermed. term corporate) - 10%
Equities:
SWTSX (Schwab total market index fund) - 30%
SCHD (Schwab US dividend focused ETF) - 10%
VT (Vanguard total world stock ETF) 10%
VHT (Vanguard health ETF) 10%

BTW, Schwab ETFs have no fees. What do you think?
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Re: Moving 401k to Schwab

Postby livesoft » Sun Dec 30, 2012 3:49 pm

I think you need a better plan. Have you done any reading of things on this web site?

Welcome.
It's all about short-term opportunistic rebalancing due to a short-term change in one's asset allocation, uh, I mean opportunistic rebalancing, uh I mean rebalancing, uh I mean market timing.
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Re: Moving 401k to Schwab

Postby retiredjg » Sun Dec 30, 2012 4:41 pm

I think you don't really need 7 funds in your 401k. Two or 3 should probably do it since you have so much flexibility in your other accounts. Rather than do a "patch" job, have you considered a little bit of a makeover to simplify things?

Re VT - Vanguard's Total World - this fund contains both US stocks and foreign stocks, so it does not make a lot of sense to hold VT and Schwab's Total Market at the same time.

You could get more comprehensive help if you post more information. See the link below. Welcome to the forum!
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Re: Moving 401k to Schwab

Postby ruralavalon » Sun Dec 30, 2012 6:08 pm

Welcome to the forum :) .

Here is a simpler way, with less overlap and unnecessary duplication --

40%, Schwab Total Stock Market Index SWTSX, er = 0.09%; or SCHB, er = 0.04%
20%, Schwab International Index SWISX, er = 0.19%; or SCHF, er = 0.09% (developed markets only)
30%, Schwab Total Bond Market SWLBX, er = 0.29%
10%, Schwab Treasury Inflation Protected Secs SWRSX, er = 0.29%; or SCHP, er = 0.07%

Wiki article link: Charles Schwab .

As retiredjg suggests, its probably best to coordinate with your other investments.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started
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