englishgirl wrote:Well, if you don't have access to any index funds, and all funds are the same type of thing/company (I assume this is some sort of state retirement plan and not a fund company??), then I'd stick with the 2050 fund as you're doing. It doesn't seem as if you have much choice in the matter!
I would check out what the stock/bond ratio of the 2050 fund, and make sure that you're comfortable with it. If not, you could always choose one marked with a different retirement year to get the stock/bond AA you prefer.
I don't think I'd bother with taxable investing if you're not maxing your tax deferred options, though.
AFFISHES wrote:The 2050 fund is ok. Its made of all index funds and is fairly cheap at .26 er, and the AA is good, but not neccassarly what I would pick (not to thrilled about the REIT or commodity portions my house equity is already 60% of my net worth). This is what 98% of the fund is made up of:
Russell 1000 Index Non-Lendable Fund E 49.90
BlackRock MSCI ACWI ex-U.S. IMI Index Non-Lendable 26.60
Fund F Developed Real Estate Index Non-Lendable Fund E 10.18
U.S. Debt Index Non-Lendable Fund E 7.88
BlackRock Dow Jones-UBS Commodity Index Daily Fund E 3.94
Any more thoughts or comments? Mostly the best way to break up my TR and LS funds into single funds, and what to make of my 457B/DC plan?
AFFISHES wrote:Overall a simple portfolio of 60/20/20 comprised of index funds is my ultimate goal.
ruralavalon wrote:AFFISHES wrote:Overall a simple portfolio of 60/20/20 comprised of index funds is my ultimate goal.
To be clear, is that index funds consisting of:
60% domestic stocks
20% international stocks?
I still haven't been able to find fund information on "U.S. Debt Index Non-Lendable Fund E" on the Colorado PERA site, does your plan info tell you a ticker symbol, or what index that fund tracks?
I believe the U.S. Debt Index Non-Lendable Fund E is actually one of the funds in the TR account. From what I can find it is the US Treasury portion. The fixed income fund for pera is PERAdvantage fixed income fund with a ER of .5 made up of 75% PIMCO total return and 25% BlackRock US debt index fund.
ruralavalon wrote:The desired asset allocation using index funds is:
60% domestic stocks
20% international stocks.I believe the U.S. Debt Index Non-Lendable Fund E is actually one of the funds in the TR account. From what I can find it is the US Treasury portion. The fixed income fund for pera is PERAdvantage fixed income fund with a ER of .5 made up of 75% PIMCO total return and 25% BlackRock US debt index fund.
I still can't find that U.S. Debt Index Non-Lendable Fund E. I also can't find a "PERA Fixed Income fund", can you post a link?. I can only find a "PERA Income Fund", which is 60% bonds and cash.
I you do use the PERAdvantage Income Fund, which is about 60% bonds, in "His 457b/DC", and couple that with a Vanguard bond index fund in the rollover IRA, then the allocation worksd out nicely. That way your overall portfolio comes out almost exactly at your desired bond allocation of 20%, and gives both domestic and international stock allocations almost exactly where you want them as well.
So that you would change to:
Taxable @ Vanguard
17.2% VTIAX (Total International), er = 0.16%
9% PERAdvantage Income fund (~ 60% in bonds, so bonds = ~ bonds @ 5.4 % of total portfolio; also ~ 10% int'l stocks; also ~ 30% domestic stocks), er = 0.26%
His Roth IRA @ Vanguard (add $5.5k/yr; ~ 21% of annual contributions)
60% VTSAX (Total Stock Market), er = 0.05%
His Rollover IRA @ Vanguard
14% Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX), er = 0.10%
The more difficult challenge may be to arrange your future contributions (you indicate about $26k/yr) so that you can adhere to your desired asset allocation. Do I understand correctly that in the 401k you can use separately any of the constituent funds of the PERAdvantage accounts? Can you also do that in the 457b/DC plan? Let us know, and we can try to offer a plan of which accounts to recieve what general amounts in the future.
If so, perhaps this outline on what to do with future contributions:
1. larger contributions (say around $5.2k/yr = 20% of annual contributions) to taxable to keep your int'l where you want it, and with a low expense ratio;
2. max out the IRA at $5.5k/yr, for bonds ($5.5k/yr = ~ 21% of annual contributions);
3. In the 401k use PERAdvantage for US Large Cap Stk, er = 0.36%
4. in the 457b/DC plan use PERAdvantage for US Large Cap Stk, er = 0.36%
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