lhl12 wrote:25/25 on TBM/TIPS seems too heavily weighted to TIPS to me. I'd suggest 35/15 instead. Others may differ, though.
Thanks so much -- I'll go with that.
I am a big fan of simplification, and would therefore put everything at Vanguard (plus your bank for the checking account and ATM card only.). I would not break the CD's - 2016 is not that far off and those rates aren't terrible. Think of the CD's as if they were VBTLX for asset allocation purposes for now, then move them over to VBTLX as they mature.
OK, sounds good: We'll do that. We also have $20K in Roth CDs and I am inclined to move those, though. 3-1/2 yrs. from now is too long to wait for those 1.75% CDs to mature.
I have found that as I age, my ability (and tolerance) for managing complexity has declined. Why not move to the simplest structure possible, freeing up more time and mental energy for your husband and yourself to enjoy these years together?
Yes, that's what I love about the Boglehead approach and now the idea of moving everything to Vanguard. Husband is very pleased as well.
If the goal is to pass the Roth to the kids, then I would make it 100% equities and keep it that way for the duration.
Vanguard offers brokerage accounts if you need one. That way you can see everything all in one place. I'm not sure why you would still need one, though.
Only reason I will use a brokerage account is to liquidate the stocks I'm transferring from Scottrade. Once all is moved to Vanguard, I'll get the 25 free trades which will care for the stocks and the two mutual funds that carry a fee to sell. Might also use if want to buy a Vanguard ETF from time to time.
livesoft wrote:IMHO, Scottrade is probably the least desirable brokerage with regards to fees and services. TDAmeritrade, Fidelity, Schwab, and Vanguard are better and lower cost.
Thanks for your comments! Glad you seconded this decision. Enjoyed lots of free trades at Scottrade, but that expired and don't need to buy anymore -- just sell. Contemplated making a circuitous route to Vanguard by taking advantage of Fidelity's very nice IRA transfer rewards, but I just want to be done.
I would recommend that you move everything to Vanguard since you can do so without tax cost. You might sell something every week and send the money to Vanguard to invest. That way, you will not be out of the market for your entire portfolio while you fix things.
What I plan to do unless it's not a good idea is transfer the Scottrade portfolio in kind to Vanguard all at once. There's enough in Vanguard funds already so that when added to what's already there, Flagship Svcs. status is attained. Then I can sell the stocks in the brokerage accounts for free (25 free trades and $2 thereafter) vs. $7 or more ea. at ST. I won't be able to trade for 2 wks. or so, but the $$ will remain invested during that period.
As for the 401(k), why are you not contributing? Since it is such a small fraction of your portfolio, I'd use only one fund in it. It might as well be the cheapest.
Not contributing because we're already taking husband's MRD from his IRAs plus a little extra and it seemed like we dipped into his IRA more because I contributed to my 401K. Plus we're already overloaded on IRAs vs. taxable. Both of us are, though, contributing full to Roths to make up for not contributing to the IRA. Not sure all this makes sense, but I like the idea of putting $$ in Roth more than in a 401K or IRA. Thanks for your suggestion of the V. 500% index.
As for the Roth and whether to have bonds or equities, I put both in my Roth IRA, but if I see a buying opportunity I will exchange from bonds to equities. Once those equities go up, I exchange back to bonds+equities. I don't like to lose money in my Roth IRA, so I will not go 100% equities unless I feel the chance of loss is very low. Even if your Roths are really for your heirs, your heirs would probably not be invested 100% in equities right now anyways. Since the Roths are precious tax-free space, I would suggest a mix of equities and bonds to reduce the chances of losses there.
That's the course I was leaning toward: I may go with 60% V. Ttl. Stk. Mkt./40% V. Ttl. Bd. Mkt. Or 100% V. Wellington, tho that's not an index fund. We plan to cash out the Roth 1.75% CDs and xfer them to Vangd. soon.
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