Bogleheads.org

There a bit of prejudice against managed funds at Bogleheads, but I happen to own Cap Appreciation at age 71. But it's only 3% of our joint Qualified Assets. I agree with you that it is risky, but you don't describe whether that has bothered you at all, until now. A halfway measure could be to stop reinvesting divs and CG distributions. We keep two years in cash, to avoid possible selling-low during retirement. Bogle thought TRP was a reputable active fund provider, including being willing to close funds with high past performance to avoid harming existing shareholders (including this fund) and not hyping up star managers. Their sin was ERs being too high. Personally, I wouldn't consider Cap Appreciation ER of .68 as "too high"

Hi,

For 15 years now, my Roth IRA has been with T. Rowe Price's Capital Appreciation Fund (PRWCX) and now at 60, with 5-7 more years left until retirement, I am wondering if this fund is a bit too risky/aggressive? I know it has has a stellar run for many years now, but I am wondering about it's performance going forward. I have 175K in it and I maxed it out every year with $7,500.

Many other retirement asset are in my TIAA 403(b) ($626,000.00).

Would a more conservative choice be one of the Vanguard balanced index funds, like Vanguard Balanced Index Admiral Shares, or maybe the Vanguard Life Strategy Moderate Growth Fund, or a mix of Wellington and Wellesley?

Thanks
Michael

Makefile wrote: ↑Mon Jan 23, 2023 8:28 pm

bsteiner wrote: ↑Mon Jan 23, 2023 7:52 pm Your taxable account is what’s left after you fund your retirement accounts. That could be a great deal or nothing or anything in between, depending on your income and expenses.

Agreed. High-income investors have taxable accounts not because of some shrewd calculation of taxable vs. tax deferred vs. Roth but because their tax advantaged space is full. Sometimes the 59 1/2 rule comes up in discussion in FIRE areas as a reason to have taxable assets prior to that, but the OP here is 60.

What assets would make one a "high income investor"?

Longdog wrote: ↑Mon Jan 23, 2023 8:04 pm Is your employer's contribution of 9.5% tied in any way to your own contributions? If you stop contributing entirely, will they continue to put in 9.5%?

Long dog,

No the plans are totally separate! My employers 9.5% is called the Defined Plan and the Deferred Plan is the supplemental plan that the employee can voluntarily contribute any % there desire. So the 9.5% is NOT tied to my own contributions and the 9.5% continues regardless.

What other sources of income will you have in retirement? What are your expenses? Do you have a Roth option for your 403b? If your salary is $72k and you are deferring 13% and then you have standard deduction, it sounds like you might just barely be in the 22% bracket, but if you have other deductions, like an HSA, it might be less. (ETA, yep looks like you are just inside the 22% bracket). Might be worthwhile to keep deferring, unless you are awaiting a large pension you haven't mentioned. sailaway, Thanks, My other source of income in retirement for, of course ,will be social social which is showing at 67 payment of $2769, at 70 $3485. My expenses in retirement will be around $3500 or so a month. My 403(b) just recently added a Roth opti...

I am looking at my 2021 tax returns.....

federal taxable income: $46,322.00
state taxable income: $63,831.00

Triple digit golfer wrote: ↑Mon Jan 23, 2023 7:22 pm How can it be a mistake? What's the alternative, to forego tax advantaged investments?

That's is why I am asking! I am trying to learn and get constructive advice.

livesoft wrote: ↑Mon Jan 23, 2023 7:19 pm

michaelc wrote: ↑Mon Jan 23, 2023 7:16 pm My salary is 72K so 22% tax bracket, I believe.

But what is your taxable income? With your standard deduction you could be deferring enough of your earned income to be in the 12% tax bracket.

To be honest, im not sure. Can you tell me how I can find this out?

Hello, I am 60 male, single, no kids and ZERO debt, in great health. My current retirement savings is right at 800K. However, these assets are the total for my 403(b) and my Roth. My 403(b) has 625K and my Roth has 175K. I DO NOT have a taxable account for retirement and now I am wondering if this is a mistake. I have 2 plans in my employer's 403(b), which is with TIAA. The Defined Plan is what my employer voluntarily contributes, which is 9.5%. The Deferred Plan is the supplemental plan that the employee contributes, which I do at 13%. I was thinking about stopping contributing to my Deferred Plan, and use that 13% to open a taxable account for retirement with Vanguard. It comes out to $725 a month. I have 5-7 more left till retirement, s...

Hello, I am 60 male, single, no kids and ZERO debt. My current retirement savings is right at 800K. However, these assets are the total for my 403(b) and my Roth. My 403(b) has 625K and my Roth has 175K. I DO NOT have a taxable account for retirement and now I am wondering if this is a mistake. I have 2 plans in my employer's 403(b), which is with TIAA. The Defined Plan is what my employer voluntarily contributes, which is 9.5%. The Deferred Plan is the supplemental plan that the employee contributes, which I do at 13%. I was thinking about stopping contributing to my Deferred Plan, and use that 13% to open a taxable account for retirement with Vanguard. It comes out to $725 a month. I have 5-7 more left till retirement, so that can add up ...

Tony-S wrote: ↑Mon Jan 02, 2023 3:02 pm

michaelc wrote: ↑Sat Dec 31, 2022 3:48 pm Is T. Rowe Price Capital Appreciation Fund (PRWCX) a great sole core fund for a ROTH IRA, or can one be a lot better?

Yes, it's a great choice for a Roth IRA. It's what I have for mine. It's a nice blend of stocks and bonds and has pretty much smoked every S&P 500 index fund out there for the last 20 years.

I agree! Someone here please point me to a better balanced fund that has had much better returns over the last 20 years with a relatively low expense ratio at or below .68.

whodidntante wrote: ↑Sat Dec 31, 2022 10:21 pm It's a large-cap growth fund with a somewhat high expense ratio. I would avoid it.

It is a balanced fund, 65/35.

My strict requirements for possibly hiring a financial advisor/planner would be they MUST be a RIA (registered investment advisor), that is registered with the SEC and can readily provide their firm's ADV forum, clearing spelling out their fee structure showing exactly how they get paid.
If they cant, RUN DOWN WALK away from them!

Never been a fan of target date funds. They are not all created equally, and all have different glide paths. Which fund/funds are you using?

Hi,

Is T. Rowe Price Capital Appreciation Fund (PRWCX) a great sole core fund for a ROTH IRA, or can one be a lot better?

Thanks
Michael

Congratulations on your preparation and your medical coverage. You are correct, that is a BIG deal! DW has a TIAA 403b with excellent vanguard fund choices. She just retired at 61. Because the fees are low, funds are great, and withdrawals and rebalancing are easily automated, we plan to leave it with The 403b in retirement. I manage her investments in exchange for an occasional hug and/or kiss using 3 fund portfolio principles, currently 45% total market, 10% international equities, and 45% in short and intermediate bond funds. It automatically rebalances on her birthday each year. In January, she’ll begin taking monthly withdrawals based on 4% annual withdrawal rate. That monthly withdrawal is easily set and put on automatic. The one cav...

researchmed

"Are you using any of the 403b plan's Traditional Annuity, in either the illiquid or liquid version?"

Yes I am. I have assets in BOTH our TIAA Traditional Defined Plan (illiquid) and the Deferred Plan (liquid) and automatically contribute to both
each bi-monthly paycheck.

Hi, I am 60 and my 403(b) is with TIAA, currents assets at $600K. I have my Roth IRA assets at 200K, so TOTAL portfolio at 800K. I max out my Roth every year at 7K and contribute 23% of my 72K salary to my 403(b). I am single, no kids , excellent health and ZERO debt. I plan on work between 5-7 more years until retirement. I have a 24 month emergency fund, in cash. My asset allocation is "moderate-conservative" at around 55% equities, 45% fixed. My employer's health insurance continues after retirement with my employer paying 80% and myself 20%, a HUGE bonus, I think. If I wait till 70 to take SS, it is showing my monthly payment at $3200. My question is for for all the TIAA folks here with 403(b)s, when you retirement do you or w...

Thanks,
I can work another 2 1/2 years, was just wondering how close I am now.

Hi,

I am 59 1/2, single, no children, NO debt ad great health. I would like to retire in 6 months at 60....can I??

My retirement portfolio is currently at 825K. My current allocation is 60/40. I also have 52K is Ally Saving accounts, which includes 30K as my 24 month emergency fund. My monthly social security payment would be $1800 at 62, $2200 at 65, $2600 at 67 and $3200 if I wait till 70.

I have NO plans for large purchases when entering retirement and I calculate my monthly income to live comfortably is $3750. My current health insurance continues after retirement at my current rate with I pay 20% and employer 80%.

Thanks
Michael in NJ

Hi,

I was wondering what investors here, particularly Vanguard investors, feel about investing in bitcoin, blockchain technologies, cyrtrocurrencies, digital assets as a small part of their portfolio?
I was listening this morning to Ric Edelman the CEO of Edelman Financial Engines and he feels that in 2022 and going forward, this should be 1 to 5% of a fully diversified retirement portfolio.

Any thoughts would be appreciated!

Thanks
Michael in NJ

My 403(b) is with TIAA, spread out using various funds and some in TIAA Traditional. My mix is about 60/40.

VBIAX is index and VWELX is actively managed. That's basically the difference.

Hi, As I approach 59.5 years old, I would like to move to the more conservative allocation of 50/50 for my Roth IRA.I am currently at about 70/30 with my Roth. I plan to retirement in about 4 more years and I am no longer comfortable with any large declines to my portfolio and think I should be more in the preservation stage, as opposed to accumulation stage. I am single, no kids and ZERO debt and currently 850K in my retirement portfolio. I am looking for suggestions in creating a index conservative 50/50 mix for my Roth. The only true 50/50 index fund that I know of is the Vanguard Tax Managed Balanced Fund Admiral Shares (VTMFX) . But I was told this fund is NOT appropriate for a ROTH IRA. Any suggestions?? My Roth IRA is at $175,000. (M...

retiredjg,

Thanks for taking the time with your detailed responses! The 32% is a mix of BOTH my 403(b) contributions AND my ROTH. I max out my Roth every year with $7000. Also, I am just thinking about maybe working part time in retirement at some fun job, 12-15 hours a week max!

I have to wait till 65 to retire to be eligible for my employer plan for my current health insurance to continue for life.

Yes, I have have my Roth for about 13 years now.

By the way, I turn 59 1/2 on Feb 9th.

Hi,

My asset allocation, between my Roth and 403(b), is right around 55% equities and 45% fixed. My health insurance with my employer continues after retirement for life, employer pays 80%, I pay 20%. I anticipate my monthly expenses to be right around $3,750 in retirement when I turn 65. I have ZERO debt and in great health. Current retirement assets at 850K, with 6 more years till retirement.

I an wondering if I really need to keep contributing 32% of my salary at this point, or can I back off a it? My goal is to get to right around 1.25 million at 65. My monthly social security payment is estimated to be: $1750 at 62, $2500 at 67 or $3101 at 70.

Yes, I max out my Roth every year ($7000) and contribute 13% to my 403 and employer contributes 9.5%.

What??? My 50K in Ally is strict in the event of a job loss, NO retirement savings!

Why would I have 500K in Ally??? I have 50K in Ally as my emergency fund.

Ok, im in the 22% tax bracket, as my salary is 70K.

Hi

I am 59, single, no kids and ZERO debt. My retirement savings, totally 850K is a mix of my TIAA 403(b) and my TRP Roth IRA. 675K in my 403(b) and 175K in my Roth. I contribute 32% of my salary toward retirement savings, but I do NOT have any retirement saving in a taxable account. Big mistake and it so, exactly what am I missing out on??

I plan on working 6 more years, retiring at 65. but my work part time, maybe 15 hours or less.

Thanks
Michael in N

Hi,

For a 59 year old, with 6 more years left till retirement, would the Wellesley Income fund be considered too conservative? I want to move out of my Roth IRA, which is with T Rowe Price and the Capital Appreciation Fund, and into a more conservative fund with much lower expense ratio. Capital
Appreciation is a bit expensive at .71 expense ratio. I am nervous of a stock market crash and dont want to lose 30-40% of my 175K Roth assets. My other retirement assets are 670K in my 403(b).

Thanks

Hi,

For a 59 year old with 6 more years left till retirement, is Vanguard Tax Managed Balanced Admiral (VTMFX), a good conservative choice for a taxable account? I never had a taxable account for my retirement savings, just my 403(b) and my Roth IRA, currently at 850K.

Thanks
Michael

100% equities at 59 in a ROTH?? No thanks! Way to aggressive at my age for my comfort level.

I am 59, single, no kids, NO debt, considering transferring my Roth IRA with TRP Capital Appreciation over to Vanguard. The reasons are I want to get a bit more conservative and lower expense ratio. I have 175K in this Roth now and max it out every year ($7000). I plan on working 6 more years and retire and 65.
I am considering transferring to one of these 3 Vanguard funds:

Balanced Index Admiral Shares
Wellington Admiral Shares
Life Strategy Growth

I know there are all very close, but which fund may be the best choice for me? Also, my 403(b) with TIAA is currently at 670K

Thank You
Micheal in NJ

What about if I bump up my 32% of salary to retirement to 37%? More likely to get to 1.2M? I also will have an inheritance of about 140K in the coming years, which I am thinking will use to fund a long term care fund.

I dont make a lot of money at all....my salary is a measly 70K. Like I stated, no debt, NO mortgage. SS would be around $3000/mo if I wait to age 70. My EF is in addition to my retirement and is 47K. I have NO expenses except for utilities, property taxes, etc.

Hi,

I will be turning 59 shortly and have about $790,000 in my retirement portfolio and plan to return in 6 years at 65. I currently contribute 32% of my salary to retirement and my current allocation is about 55% equities and 45% fixed. At 59, should I been more in the preservation mindset, than accumulation mindset?? Should I be slightly more conservative with my allocation, and can I now back off a bit on saving 32% toward retirement, yet still reach my goal of 1.2mil?

I have ZERO debt and a 24 month emergency fund. I am single, no children.

My goal in 6 years is to be about 1.2mill in retirement. Is this a realistic goal?

Thanks
Michael in NJ

Thanks, I will look into that.

No pension, my retirement savings will be my 403(b), Roth and Social Security. My goal is to get to just a bit over 1 million. I am a super saver and save 40% of my salary towards retirement.

I am comfortable with an 18 month emergency fund and for me that is 30K in Ally Bank online savings account. The account will NEVER get touched and ONLY get tapped in the event of a job loss.
I have a secondary emergency fund of $2500 which is for any household/auto/personal situation, also in Ally Bank.

Hi,

What would be considered a reasonable asset allocation for a 58 year old, single, no kids, ZERO debt with 7 more years left to retire. My current retirement portfolio is 800K and current allocation is around 58% equities 42% fixed. My 403(b) is with TIAA-CREF and my Roth IRA is with T. Rowe Price.

Thanks
Michael in NJ

I didnt start retirement savings until 32 with my 403(b) and I am 58 now and have accumulated $800K so far.. I plan to retire in 7 years at 66. However, I am single with no kids, so it was much easier. I also have ZERO debt.

Thank you all!

The 2 recent RIA's I met with for a free consultation, both told me I would be crazy to dump my TRP Capital Appreciation Fund in my Roth, so I am just ride it out for a few more years.

dukeblue,

In my 403(b) with TIAA-CREF, I have access to all of their funds, in addition my employer just added the Schwab S&P 500 Index Fund and some Vanguard funds. My Roth is directing with TRP, using TRP Capital Appreciation Fund. I save 32% of my salary towards retirement. I accumulated my $750,000 retirement savings with 26 years of saving. My goal is to be at 1.2M by age 66 and then retire. I am currently 58 1/2.

My Roth is soley in TRP Capital Appreciation and I was just wondering if there is a better choice for a single core fund. The ER is kind of high at .71.

Hi,

Just generally speaking, do most here feel that the Wellesley Fund Admiral Shares (VWIAX) would be a bit too conservative for a 58 year old with 7, 8 more years left to retirement as a core single fund in a Roth IRA?

My current retirement amount is now at $750,000 between my 403(b) and my Roth IRA.

Thanks
Michael in NJ