mort439 wrote:Hi, I am fairly new to the investing business even though I have had investments since 1999. It was just something I was told to do by fellow employees at my work. I didn't really know what is was about..lol Anyways I read the post by "Laura" and I have the following information and hope you guys can give me some solid advice. I have investments allll over the place and would like to consolidate if possible. Well, here it goes;
1) Head of household
2) 70,000 income
3) 2700 in a Money Market fund, 1200 in an online savings account - 1-2 months
4) File married jointly
5) 120,000 in mortgage debt at 3.25% on a 30 year loan
6) Credit debt- usually paid of monthly but due carry a debt of 100-200.00 montlhy at times
7) My wife and I both have Roth IRA's through First Investors at this time..
8) Wife- had tradionial IRA rolled into Roth- current balance of 19,600(total return/select growth funds)<--Please list all fund names/tickers..
9) I have had a Roth at current value of 16,700(Growth and income fund)
10) I have a TSP account also which is a tradionial IRA valued at 5,200(Military)
11) I have a 457 through my employer that is at 28,600
11) Massachusetts Tax rate is at 5.25% on income. Fed rate - 15% on taxable income over $17,850 to $72,500
12) Age 42/Wife 39
13) Allocation- 60% Stocks, 20% Bonds, 20% oversea's stocks ?<--An 80/20 AA is higher than I would recommend for your ages.
14) Would like to get into Vanguard accounts as my current account holder is not in my best interest.<--IRAs can be transferred to Vanguard. Vanguard will initiate the transfers after you contact them and fill out paperwork.
15) 120.00 a month into money market,<--what is this to be used for?
50.00 a month into IRA, Wife's is on hold, 457 is 100.00 a month
TSP is 5% of income monthly which is around 70.00<--TSP is probably preferred over 457 or IRA because of super-low costs, but to be sure, you might list lowest cost funds available in the 457.
mort439 wrote:Thank you! I am in the process of moving our Roth's over to Vanguard. I was going to do a VTI , Bond and Wellington mix but you believe international would be better?
**Take a look at the Three-fund portfolio: http://www.bogleheads.org/wiki/Three-Fund_Portfolio
My 457 is solid being I don't think I can move the funds from one account to another(roth) without just cashing it out and then investing it. I would get taxed on that before investing it so I don't know if thats a good idea. Do you believe I should move everything to one accout? For instance the TSP? Or just keep the two seperate? I know I am all over the map on this stuff. I am not an expert by any means, lol..
**No, you can't move what is in the 457 while you are working there. But you should be able to change to different funds. Again I reference the above link.
**Also can you now invest in TSP or is that from a previous job? If it is for your current job that is the best place to be. Do you get any match at 457? Always do the match for free money.
**What are the ERs and what is available in 457? If you have some in each category below .5 ER they would do.
I suggest you consider putting in all that is allowed into the TSP each year you can. There is nothing else that can compare to the ERs there and you can get well-diversified funds there. The only shortage is no Emerging markets in the international fund. See the Wiki here for info on TSP: http://www.bogleheads.org/wiki/TSP
The usual recommendation is:
401k (or 457) to the match
Roth or tIRA
fill the 401k (or TSP, 457) Please don't call TSP a 401k because it is not, even though somewhat similar.)
then taxable ( including I-Bonds, CDs, etc.)
You can probably get a good choice from 457 using: Look up ERs
Vanguard total bond
Vanguard institutional Index (S&P)
Vanguard Small-cap (do you have?)
Vanguard (do you have?) or TIAA-CREF International (?ER cost?)
The above is similar to the three fund portfolio (see above). You could have the same in your Roth IRA at Vanguard or mix and match to get the same overall with your desired AA (asset allocation). At Vanguard you could even do just one fund in your Roth such as a Target Retirement (Just look at % stocks/bonds) or Life Strategy Aggressive, Moderate,or Conservative.
I appreciate the help..
mort439 wrote:Well I looked into transferring my First Investors Roth into the TSP but they don't accept Roth IRA's.. So that brings me back to Vanguard I guess...That was not what I wanted to hear..Oh well...
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