Advice on 401k and IRA

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Advice on 401k and IRA

Postby darrel » Sat Jun 19, 2010 10:36 pm

Emergency funds = 4 months
Debt: mortgage 4.625% (7 years left)

Tax Filing Status: Married filing Jointly

Tax Rate: 09% Federal 07% State Oregon (calculate from my 2009 return)

Age: 48

Desired Asset allocation: I don’t know. I’d like advice.

Current portfolio: 5 figures, it is greater than $50,000

Taxable
00% cash (for investing – do not include emergency funds)
00% fund name (ticker symbol) (expense ratio)
00% stock company name (ticker symbol)

Roth at Fidelity (just opened account with monthly auto deposit)
00% FIDELITY ASSET MANAGER 20% (FASIX) (0.58%)

Rollover IRA at Fidelity (only account the currently has money in it)
xx% fund name (ticker symbol) (expense ratio)
10% AMERICAN CENTURY MID CAP VALUE INVESTOR CL (ACMVX) (1.01%)
08% INVESCO U.S. GOVT FUND INVT (AGIVX) (0.98%)
05% ARTIO GLOBAL HIGH INCOME FUND CL A (BJBHX) (1.01%)
11% BUFFALO MID CAP FUND (BUFMX) (1.02%)
05% MANNING & NAPIER WORLD OPPT SER CL A (EXWAX) (1.18%)
05% FIDELITY CONTRAFUND (FCNTX) (1.02%)
05% FIDELITY SMALL CAP DISCOVERY FUND (FSCRX) (1.13%)
05% FIDELITY SELECT SOFTWARE & COMPUTER (FSCSX) (0.90%)
04% FIDELITY INTER BOND (FTHRX) (0.45%)
04% JANUS OVERSEAS FUND CLASS T (JAOSX) (0.95%)
12% OAKMARK INTERNAT'L I (OAKIX) (1.17%)
05% PARNASSUS EQUITY INCOME PORTFOLIO (PRBLX) (1.00%)
07% PERMANENT PORTFOLIO (PRPFX) (0.82%)
05% TCW EMERGING MARKETS INCOME CL N (TGINX) (2.41%)
09% YACKTMAN FUND (YACKX) (0.93%)


401k at Fidelity (just opened account; the following percentages are my selected allocations)
xx% fund name (ticker symbol) (expense ratio)
20% Fidelity Contrafund (FCNTX) (1.02%)
10% Spartan 500 Index - Investor Class (FUSEX) (0.10%)
20% Fidelity Low-Priced Stock Fund (FLPSX) (0.99%)
10% Spartan Extended Market Index Fund - Investor Class (FSEMX) (0.10%)
10% T. Rowe Price Mid Cap Growth SHS (RPMGX) (0.83%)
10% Fidelity Small Cap Stock Fund (FSLCX) (0.96%)
10% Vanguard REIT Index Fund SignalTM (VGRSX) (0.14%)
05% PIMCO High Yield Institutional CL (PHIYX) (0.56%)
05% PIMCO Total Return Inst CL (PTTRX) (0.64%)
Company Match? Yes $4000 a year

Total of All Accounts Together (not each account individually) equals 100%

New annual Contributions
$8000 401k (including matching contributions)
$2400 roth

Funds available in his 401(k)
Fund name (ticker symbol) (expense ratio)
Fidelity Contrafund (FCNTX) (1.02%)
Spartan 500 Index - Investor Class (FUSEX) (0.10%)
Fidelity Low-Priced Stock Fund (FLPSX) (0.99%)
Spartan Extended Market Index Fund - Investor Class (FSEMX) (0.10%)
T. Rowe Price Mid Cap Growth SHS (RPMGX) (0.83%)
Fidelity Small Cap Stock Fund (FSLCX) (0.96%)
Vanguard REIT Index Fund SignalTM (VGRSX) (0.14%)
PIMCO High Yield Institutional CL (PHIYX) (0.56%)
PIMCO Total Return Inst CL (PTTRX) (0.64%)
American Funds® Growth Fund of America® Class R4 (RGAEX) (0.70%)
Fidelity Independence Fund (FDFFX) (0.92%)
T. Rowe Price Value SHS (TRVLX) (0.91%)
Goldman Sachs Mid Cap Value CL A (GCMAX) (1.19%)
T. Rowe Price Mid Cap Growth SHS (RPMGX) (0.83%)
American Funds® EuroPacific Growth Fund® Class R4 (REREX) (0.86%)
Vanguard STAR Total Intl Stk Idx (VGTSX) (0.32%)
Aston/River Rd Sm Cap Val CL I (ARSIX) (1.17%)
Harbor International Inv CL (HIINX) (1.22%)
Prudential Jennison Small Company CL A (PGOAX) (1.23%)
Fidelity Freedom Income Fund (FFFAX) (0.50%)
Fidelity Puritan Fund (FPURX) (0.67%)
Managed Income Portfolio () (0.55%)
Fidelity Money Market Trust Retirement Money Market Portfolio (FRTXX) (0.45%)
Fidelity Freedom 2020 Fund (FFFDX) (0.74%)
Fidelity Freedom 2025 Fund (FFTWX) (0.76%)
Fidelity Freedom 2030 Fund (FFFEX) (0.79%)


Questions:
1. I just rolled over my old 401k to an IRA at Fidelity. Can I move it to an IRA at Vanguard? Also I just opened a Roth IRA at Fidelity. Can I also move it to Vanguard?
2. Based on boglehead principles what would be the best funds to invest my IRA in? What about my 401k?
3. Is it worth paying for “detailed financial plan at a discount” with the Vanguard Voyager services?
4. Is a savings account with 1.4% APR a good place for all my emergency funds and savings?
5. My Roth I just opened and auto deposit $200 a month. So currently everything will go into FASIX. Once I have $2500 in FASIX I can use that money to some other fund. But my auto contribution will keep going into FASIX. Any advice on best funds to buy once I get to $2500?
Last edited by darrel on Sat Jun 19, 2010 11:52 pm, edited 1 time in total.
darrel
 
Posts: 6
Joined: 19 Jun 2010

Re: Advice on 401k and IRA

Postby grok87 » Sat Jun 19, 2010 10:50 pm

darrel wrote:Emergency funds = 4 months
Debt: mortgage 4.625% (7 years left)

Tax Filing Status: Married filing Jointly

Tax Rate: 09% Federal 07% State Oregon (calculate from my 2009 return)

Age: 48

Desired Asset allocation: I don’t know. I’d like advice.

Current portfolio: 5 figures, it is greater than $50,000

Taxable
00% cash (for investing – do not include emergency funds)
00% fund name (ticker symbol) (expense ratio)
00% stock company name (ticker symbol)

Roth at Fidelity (just opened account with monthly auto deposit)
00% FIDELITY ASSET MANAGER 20% (FASIX) (0.58%)

rollover IRA at Fidelity (only account the currently has money in it)
xx% fund name (ticker symbol) (expense ratio)


401k at Fidelity (just opened account; the following percentages are my selected allocations)
xx% fund name (ticker symbol) (expense ratio)
20% Fidelity Contrafund (FCNTX) (1.02%)
10% Spartan 500 Index - Investor Class (FUSEX) (0.10%)
20% Fidelity Low-Priced Stock Fund (FLPSX) (0.99%)
10% Spartan Extended Market Index Fund - Investor Class (FSEMX) (0.10%)
10% T. Rowe Price Mid Cap Growth SHS (RPMGX) (0.83%)
10% Fidelity Small Cap Stock Fund (FSLCX) (0.96%)
10% Vanguard REIT Index Fund SignalTM (VGRSX) (0.14%)
05% PIMCO High Yield Institutional CL (PHIYX) (0.56%)
05% PIMCO Total Return Inst CL (PTTRX) (0.64%)
Company Match? Yes $4000 a year

Total of All Accounts Together (not each account individually) equals 100%

New annual Contributions
$8000 401k (including matching contributions)
$2400 roth

Funds available in his 401(k)
Fund name (ticker symbol) (expense ratio)
Fidelity Contrafund (FCNTX) (1.02%)
Spartan 500 Index - Investor Class (FUSEX) (0.10%)
Fidelity Low-Priced Stock Fund (FLPSX) (0.99%)
Spartan Extended Market Index Fund - Investor Class (FSEMX) (0.10%)
T. Rowe Price Mid Cap Growth SHS (RPMGX) (0.83%)
Fidelity Small Cap Stock Fund (FSLCX) (0.96%)
Vanguard REIT Index Fund SignalTM (VGRSX) (0.14%)
PIMCO High Yield Institutional CL (PHIYX) (0.56%)
PIMCO Total Return Inst CL (PTTRX) (0.64%)
American Funds® Growth Fund of America® Class R4 (RGAEX) (0.70%)
Fidelity Independence Fund (FDFFX) (0.92%)
T. Rowe Price Value SHS (TRVLX) (0.91%)
Goldman Sachs Mid Cap Value CL A (GCMAX) (1.19%)
T. Rowe Price Mid Cap Growth SHS (RPMGX) (0.83%)
American Funds® EuroPacific Growth Fund® Class R4 (REREX) (0.86%)
Vanguard STAR Total Intl Stk Idx (VGTSX) (0.32%)
Aston/River Rd Sm Cap Val CL I (ARSIX) (1.17%)
Harbor International Inv CL (HIINX) (1.22%)
Prudential Jennison Small Company CL A (PGOAX) (1.23%)
Fidelity Freedom Income Fund (FFFAX) (0.50%)
Fidelity Puritan Fund (FPURX) (0.67%)
Managed Income Portfolio () (0.55%)
Fidelity Money Market Trust Retirement Money Market Portfolio (FRTXX) (0.45%)
Fidelity Freedom 2020 Fund (FFFDX) (0.74%)
Fidelity Freedom 2025 Fund (FFTWX) (0.76%)
Fidelity Freedom 2030 Fund (FFFEX) (0.79%)


Questions:
1. I just rolled over my old 401k to an IRA at Fidelity. Can I move it to an IRA at Vanguard? Also I just opened a Roth IRA at Fidelity. Can I also move it to Vanguard?
2. Based on boglehead principles what would be the best funds to invest my IRA in? What about my 401k?
3. Is it worth paying for “detailed financial plan at a discount” with the Vanguard Voyager services?
4. Is a savings account with 1.4% APR a good place for all my emergency funds and savings?
5. My Roth I just opened and auto deposit $200 a month. So currently everything will go into FASIX. Once I have $2500 in FASIX I can use that money to some other fund. But my auto contribution will keep going into FASIX. Any advice on best funds to buy once I get to $2500?

Hell darrel and welcome to the forum,
As far as asset allocation, I would recommend roughly age in bonds as a good rule of thumb. So maybe 54/46?
First of all I would roll all of your IRAs (rollover IRA and Roth) to Vanguard.
Here's how I would invest the money in your current Rollover IRA:

Rollover IRA 100%
18% Vanguard S&P 500 Index
18% Vanguard Small Cap Value
18% Vanguard Total International
23% Vanguard Intermediate Treasury (or FDIC insured CDs)
23% Vanguard TIPs

Here's how I would invest your future contributions:

401k $8000 = 77%
Spartan S&P 500 Index 16%
Spartan Extended Market Index 15%
Vanguard Total International 18%
5% Vanguard REIT Index
Pimco Total Return 23%


Roth $2400 = 23%
Vanguard TIPs

Not sure about the financial plan- maybe those who have used Vanguard for this can chime in. I think the 1.4% savings account is a good deal.
cheers,
grok, CFA | "You can only convince people who think they can benefit from being convinced."- Taleb
grok87
 
Posts: 6433
Joined: 27 Feb 2007

thanks for the additional info

Postby grok87 » Sun Jun 20, 2010 8:04 pm

Darrel,
Thanks for adding the additional info on how your rollover ira is currently invested. My investment advice is unchanged.
cheers,
grok, CFA | "You can only convince people who think they can benefit from being convinced."- Taleb
grok87
 
Posts: 6433
Joined: 27 Feb 2007

Vanguard TIPs

Postby darrel » Sun Jun 20, 2010 10:21 pm

What is Vanguard TIPs? I searched the vanguard sight and couldn't find anything.

Thanks for the help
darrel
 
Posts: 6
Joined: 19 Jun 2010

Re: Vanguard TIPs

Postby grok87 » Sun Jun 20, 2010 11:00 pm

darrel wrote:What is Vanguard TIPs? I searched the vanguard sight and couldn't find anything.

Thanks for the help

Sure no problem. I was referring to the Vanguard TIPs fund. The ticker is VIPSX.
cheers,
grok, CFA | "You can only convince people who think they can benefit from being convinced."- Taleb
grok87
 
Posts: 6433
Joined: 27 Feb 2007

Postby dkdoy » Sun Jun 20, 2010 11:08 pm

More good info on Tips on the Wiki page http://www.bogleheads.org/wiki/Treasury ... Securities
User avatar
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Posts: 503
Joined: 13 Jun 2009
Location: Oregon


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