Traditional IRA Rollover (I have a Roth already) Advice

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Topic Author
letsmakesomething
Posts: 24
Joined: Mon Nov 05, 2012 12:32 am

Traditional IRA Rollover (I have a Roth already) Advice

Post by letsmakesomething »

Hello All,

I recently changed employers and need to move my 401k with my previous employer to a traditional IRA. The reason for the move to a traditional IRA is the 401K provider from my preious employer charges a .75 management fee, though I have a targeted Index funds plan selected. I am no longer contributing to this 401k bc I am no longer with the employer. I want to eliminate the management fee (which was a bout $600 this last year) bc they didn't do anything for me and this is still a fee I had to pay.

My current employer is more of a start up comapany and does not yet have a 401k plan set up, but will in the future. In the meantime I am looking to roll my 401k into a traditional IRA. I already have about 1/3 of my retirement funds in a Roth IRA which is invested in the Lazy portfolio Core 4 as follows:

Vanguard Total Bond Market Index Fund BND (.08%)
Vanguard Total Stock Market Index Fund VTI (.05%)
Vanguard Total International Stock Index Fund VXUS (.14%)
Vanguard REIT Index Fund VNQ (.10%

I now want to invest my 401k rollover funds in a traditional IRA and want to use another Lazy portfolio, but maybe not the same one which is using the core 4.

My specific question is this: are there any suggestions for what lazy portfolio I should invest the other 2/3 of my retirement investments into my Traditional IRA rollover?

I am 32 years old. Thank you for taking a look and all the advice, it is much appreciated!
Last edited by letsmakesomething on Sun Feb 08, 2015 4:32 pm, edited 1 time in total.
User avatar
LAlearning
Posts: 1365
Joined: Wed May 09, 2012 12:26 pm
Location: Los Angeles

Re: TRADITIONAL IRA ROLLOVER (I HAVE A ROTH ALREADY) ADVICE!

Post by LAlearning »

Just because you change location of money, doesn't mean you change strategy or add funds. Two separate lazy plans do not beat a single one...
I know nothing!
User avatar
BL
Posts: 9874
Joined: Sun Mar 01, 2009 1:28 pm

Re: Traditional IRA Rollover (I have a Roth already) Advice

Post by BL »

If you have decided upon the Lazy Portfolio, why do you want to change? The whole idea is that you don't have to do much with it. Adding more would just complicate, and not necessarily improve the portfolio.

I don't have any need for Reit, so I would have chosen the 3-Fund Portfolio (search in Wiki).
Some prefer a tilt to Small value instead of Reit, but no one knows which (if any) will do better from now on.

Simple is good!

Some might split them up so you wouldn't have all in each one, but still have the same over-all portfolio.
Topic Author
letsmakesomething
Posts: 24
Joined: Mon Nov 05, 2012 12:32 am

Re: TRADITIONAL IRA ROLLOVER (I HAVE A ROTH ALREADY) ADVICE!

Post by letsmakesomething »

LAlearning wrote:Just because you change location of money, doesn't mean you change strategy or add funds. Two separate lazy plans do not beat a single one...
I am changing my investments bc when the funds were in my 401k I had limited options and had a single target fund selected. So you are suggesting to keep to the same Lazy portfolio with the %'s of allocation now taking into consideration my Roth plus my Traditional IRA?
Topic Author
letsmakesomething
Posts: 24
Joined: Mon Nov 05, 2012 12:32 am

Re: Traditional IRA Rollover (I have a Roth already) Advice

Post by letsmakesomething »

BL wrote:If you have decided upon the Lazy Portfolio, why do you want to change? The whole idea is that you don't have to do much with it. Adding more would just complicate, and not necessarily improve the portfolio.

I don't have any need for Reit, so I would have chosen the 3-Fund Portfolio (search in Wiki).
Some prefer a tilt to Small value instead of Reit, but no one knows which (if any) will do better from now on.

Simple is good!

Some might split them up so you wouldn't have all in each one, but still have the same over-all portfolio.
Why don't you have a need for reit? What small caps would you use to tilt the core 3?
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