Should I pick 3? (VTSAX, VASGX, VGTSX)
VASGX is a life strategy fund. Did you mean to list total bond?
Or just go with the retirement 2045 fund?
Thanks for the help. It's nice to find some like minded people. I wonder what my employer will think when I tell them I don't want to participate in their 401K.
Don't be too hasty with that decision. It would help if you followed the recommended posting format (linked above). Then we can review the 401k funds. If there are too many to list, just list the ones with lower expense ratios.
beegee wrote:Here are some more details. Thanks for the help.
Emergency funds: I do not currently have
It would be wise to have an emergency fund, especially with your wife's variable income.
Tax Filing Status: Married Filing Jointly - 3 kids
Tax Rate: xx% Federal, xx% State - I make 60K/year and the wife (when she's not on maternity leave) makes about 40K
State of Residence: MN
Desired Asset allocation: Not sure. Willing to be aggressive at this point as I likely have at least 25 years until retirement.
A stock allocation of around 65-75% would be in an acceptable range, but you really should read up on risk before making a decision. Check the Wiki for asset allocation and Risk.
Desired International allocation: Would like exposure to international markets
Recommended range for international is between 20% and 40% of equity.
Please provide a hint as to the size of your current total portfolio: Approximately 16K in Roth IRA at local brokerage and 17K through my work's traditional 401K/profit sharing plan (they do not match).
My wife has no retirement accounts. We have a house in her name.
Is this a second house, or the one you are living in?
New annual Contributions
At the moment I'm making contributions of $100/month to my roth and $30/week to my work's 401K.
I'm considering the following: Roll over Roth to Vanguard (I don't even know what my guy currently has me invested in, but this seems like a no-brainer to avoid his fees?).
Transferring the Roth to Vanguard is an excellent idea. How much are you paying for management, and why don't you know what you own?
Roll over work's 401K to vanguard and convert it to roth so that furture earnings won't be taxed. Invest it all in a Vanguard target retirement fund 2045.
TR 3035 is 90% stock, too high in my opinion, and you have to check with your company to see if they allow an in service rollover. Does your 401k have a Roth option? I don't know if a Roth conversion is a good idea right now. I understand your reasoning, but I think it may be more important to invest the money rather than spend it on taxes. You could also increase contributions to your Roth once it's transferred to Vanguard.
My works' 401K is in an "aggressive" portfolio. It's spread out over 18 funds with expense ratios ranging from .86% to 1.5%
Please post the funds available in your 401k.
1. Is this smart?
Moving Roth to Vanguard is smart. I don't know if converting to Roth is smart, and I'd be a little cautious about being too aggressive. You may have the emotional tolerance to lose 40-45% of your money, but you really don't have the financial risk capacity to lose that much.
2. Am I correct when I say that it's smart to convert my 401K to a roth so that future earnings won't be taxed?
I don't think so considering your current situation.
3. Can I even roll over a 401K that I have through my current employer?
Depends on your employer's rules.
4. The custodian of my work's 401K is the Newport Group. On top of that we have another company that provides "advice and model portfolio’s construction, fund selection and maintenance, detailed quarterly investment review". Is it safe to assume that I'm paying these people, along with the Newport Group, and the expense ratios of the individual funds themselves?
Oh, it's very safe.
Thanks again for your help.
pkcrafter wrote:beegee wrote:3. Can I even roll over a 401K that I have through my current employer?
Depends on your employer's rules.
beegee wrote:I wonder what my employer will think when I tell them I don't want to participate in their 401K.
beegee wrote:Thanks everyone for your input. I need to vent....
Toons wrote:50K in student loan debt ,Car loan?
Get Rid of the debt