I would suggest at age 59 that you consider having about 50% stocks and 50% bonds, with about 20% of stocks in internatonal (that is int'l at 10% of overall portfolio).
Portfolio size $437k; planning to invest $58k/yr. With that amount of hoped-for annual saving you can fully fund the two 403bs, his IRA, and also open and fully fund an IRA for her; that is what I would suggest you do rather than do taxable investing. You do need to be aware of phase outs for the IRAs, which reduce the maximum amount you can contribute annually as your income (Modified AGI) rises, please see for example : Wiki article link: Traditional IRA
At a combined marginal tax rate of 31% (25% federal, 6% state), it might well be best for you to use taditional IRAs rather than Roth IRAs for your future contributions, please see : Wiki article link: Traditional versus Roth
; and viewtopic.php?f=1&t=104122&newpost=1523869
The idea is to develop a portfolio that combines broad diversification (to reduce your risk) with low expenses (to increase your net gain). You start by selecting the best choices in the 403bs (where the choices are limited), and then completing the asset allocation using the nearly unlimited choices in the IRAs.
I suggest that you do not use blended funds like Star, Wellington, Wellesley, etc.
They are all good funds, but are mixed stock/bond funds and because of that using them will make it harder to keep track of your asset allocation percentages in the future.
I suggest initially using Dodge and Cox International Stock (DODFX) in his 403b, it is a good well managed moderate cost international fund. Ultimately I prefer Vanguard's Total International fund (in the IRAs), its a very low cost index fund which is very widely diversified covering developed markets including Canada, emerging markets, and both large and small cap stocks.
Here is a portfolio idea you could consider, current portfolio size $437k. All Percentages and amounts are rounded off. His 403b at Lincoln
(80%; $349k; add $23k/yr plus 2.2k match)
50%, $218k, Vanguard total bond market index signal (VBTSX), er = 0.11%
24%, $105k, Vanguard total stock mkt index signal (VTSSX), er = 0.07%, <= covers large, mid & small cap domestic stocks
06%, $26k, Dodge and Cox International Stock (DODFX), er= 0.65%, <= you would alter this % later as you build up Vanguard Total International in the IRAsHer 403b at Lincoln
(16%; $72k; add $23k/yr)
13%, $57k, Columbia large cap indexZ (NINDX), er = 0.17%, <= S&P 500 index fund
03%, $13k, Columbia small cap index Z (NMSCX), er = 0.20%, <= S&P Small Cap 600 index fund
(4.5:1 ratio of these two should approximate total market)His Roth IRA at Vanguard
(04%; $16k; add $5.5k/yr?)
04%, $16k,Vanguard Total International Stock Index Fund Admiral Shares (VTIAX), er = 0.16%Her IRA at Vanguard
(00%; $00; add $5.5k/yr ?)
00%; $00, Vanguard Total International Stock Index Fund Investor Shares (VGTSX), er = 0.22%, <= can switch to even less expensive Admiral shares in a year or two when holding equals $10k
This gives you a simple portfolio using just 5 - 6 funds, which is very widely diversified, with very low expenses, making the best use of the low expense index funds in the two 403bs, and which should be easy to manage and rebalance going forward. All rebalancing could be done inside his 403b, at least initially. Wiki article link: Rebalancing
gopro wrote:Keep in mind that my husband can roll over to ira in april and wife can in sept....
Given the good low cost index fund choices in the 403bs (all that's missing in the 403bs is a good low cost international index fund, which can get in your regular IRAs without the rollovers -- a little Dodge & Cox Int'l will do just fine in his 403b), I see almost no advantage to in-service transfers to rollover IRAs at this point. Since you are continuing to work and contribute to the 403bs, that will add 2 more accounts to manage.
Finally, I would suggest that you read a couple of the books on these reading lists, to help you understand the reasons for the suggestions, and to understand how to manage the portfolio in the future -- http://www.bogleheads.org/readbooks.htm
; and Wiki article link: Books: Recommendations and Reviews
I hope that this helps.