Up until this point, I only invested in 401k, vanguard roth, I am 29yr old, single. I hope I can learn more about investment from the community here.
here's my break down.
Have emerg. fund 6 months.
credit card Debt: $2800 ( will pay off very soon)
student loan: $firstname.lastname@example.org%
tax filing status: single
tax rate: fed 28% State 6.37%
state of residence: nj
Desired Asset allocation: 85% stocks / 15% bonds
Desired International allocation: not sure.
Current retirement assets
low 6 figures.
Cash - 39% (down payment)
401k (previous employer)
2.5% SSgA Cash Series U.S. Government Fund - Class L (0.75%)
4.5% Janus Balanced Fund - Class s (JABRX) (1.09%)
2.6% Janus Forty Fund - Class S (JARTX) (1.18%)
1.9% Goldman Sachs Structured International Equity Fund - Class A (GCIAX) (1.25 %)
1.3% Franklin Mutual Global Discovery Fund - Class R (TEDRX) (1.51%)
401k (current employer)
42% JP Morgan LifePath Index 2050 NL-G 0.12%
company match 50%
Roth Ria at Vanguard
11% Target Retirement 2050 VFIFX 0.19%
New annual Contributions
$17500 401k (50% company match)
$30000 (short term goal, down payment)
$5000 - 7500 taxable
1. roll the old high cost 401k over to current employer plan. Yes? I wish i knew better. I just found their expense ratio as im typing today.
2. Any more tax-advantaged account I can add to my portfolio?
3. My short term goal is to buy a house, So I am actively putting money in my savings account. after maxing out my 401k and ira. Is there a better way to do this to reach my goal sooner? such as opening up a general account with vanguard mutual fund hoping to grow my down payment quicker. bad idea? good idea?
4. I will be making more this year. I am not a big spender. I suppose my annual expense won't increase much from 2012. any way i can utilize the extra income? I do plan to put more money into my down payment savings.
Do funds always have a ticker? I can't find two the tickers for two of my funds.
ren20 wrote:Thank you for the input.
I am also wondering if it's really a good time to buy a house? i understand the interest rate is low. This is gonna be the biggest purchase of my life. It's exciting also intimidating. At this rate, I will probably be able to save up enough by the end of the year.
I can't find tickers for these two funds
P Morgan LifePath Index 2050 NL-G
SSgA Cash Series U.S. Government Fund - Class L
SSgA is in my old 401k plan. I will roll them into IRA. Rolling them into traditional IRA wont require me to pay tax, correct?
ren20 wrote:Just rolled the old 401k over to vanguard. Their Rep was very helpful, guided me thru every step.
That will simplify things up a bit for me.
I have total bond index 20%, total stock market 50%, and total international index 30% in the rollover IRA. Does this conflict my roth ira? I have a target retirement 2050 fun in the roth.
Grt2bOutdoors wrote:You have some very nice choices especially with those Vanguard funds.
If you aren't the type to monitor the portfolio and just want to set it and forget it then any of the Lifepath funds calibrated to your risk tolerance levels would be fine. If the balance of your 401k plan becomes substantial enough that you want to save 2 or 3 bps, then I'd say slice n dice. For pennies now, I'd just go with the Lifepath fund - keep it simple, Blackrock probably does a fine job.
ren20 wrote:[b]Rollover Ria at Vanguard [b] (updated 1/30/2012)
5% Total stock market index adminral shares vtsax
3% total international stock index vgtsx
2% total bond market index vbmfx
ren20 wrote:I read and read again the boglehead guide. but I am actually doing this, I am still feeling clueless.
ren20 wrote:Are you suggesting I should keep all in target date retirement fund?
ren20 wrote:That's one of the area that's also confusing me. I have target date in my Roth, Then 3 funds in my rollover ira. Do I treat them as two separate accounts? I guess my question is, since I have 3 accounts for retirement fund. How should I look at them? and manage them?
ren20 wrote:Please excuse my lack of knowledge on the subject. Thanks again for the help.
pingo wrote:After you buy a house, you'll have a lot of after-tax money to invest. Can you find out if your 401k allows after-tax employee contributions as well as the ability to regularly roll those amounts out of the plan (and, thus, into your Roth account) ? (Please read the link.)
ren20 wrote:I couldn't find the related information on the provider's website. will call to find out. it would be nice to have the option, isn't it?
pingo wrote:Given your tax bracket and new increase in income, do you expect to phase out of Roth IRA eligibilty anytime in the future? (Having a Rollover IRA will affect your ability to make Backdoor Roth contributions if you can't make them directly. It doesn't mean you should move it to the new 401k right now, but you want to be sure you can do so, in case you need to in the future.)
ren20 wrote:I believe I've already hit the threshold for 2012. Probably right on the edge . will find out when the w2 comes in. tho wasn't so clear on what happen after if I reach the threshold, I still contributed $5000 to the roth in 2012.
ren20 wrote:I am about 25k from my goal for the down payment. With my current rate of saving, I should reach my goal by the end of the year safely. I will receive my bonus this month. about 10K. Initially, I elected to contribute all of it to my 2013 401k to avoid the heavy tax. I can still change the election of my bonus money. If I am not mistaken, bonus is taxed at 45%. What would you do with the bonus money? If I contribute all of it. Starting from May/June, I will have extra 1400 before tax each month.
ren20 wrote:Provider is JPmorgan. tho the data sheet says blackrock in the header.
pingo wrote:ren20 wrote:I am about 25k from my goal for the down payment. With my current rate of saving, I should reach my goal by the end of the year safely. I will receive my bonus this month. about 10K. Initially, I elected to contribute all of it to my 2013 401k to avoid the heavy tax. I can still change the election of my bonus money. If I am not mistaken, bonus is taxed at 45%. What would you do with the bonus money? If I contribute all of it. Starting from May/June, I will have extra 1400 before tax each month.
Just shootin' from the hip here: I suppose I'd contribute the bonus to the 401k and expect to add even more to your house and emergency savings for the moment. [...]
ren20 wrote:I rolled the old 401k over to vanguard rollover ira.
ren20 wrote:I no longer am eligible for roth [...]
ren20 wrote:[...] so my contribution goes to ira now.
ren20 wrote:I got a mid year 25% pay raise, along with the extra money each month for maxing out 401k.
What are my options with the extra cash now?
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