Search found 26241 matches

by ruralavalon
Sat Mar 09, 2024 3:38 pm
Forum: Personal Investments
Topic: Checkup: I'm way behind. Hope for late bloomers?
Replies: 42
Views: 5387

Re: Checkup: I'm way behind. Hope for late bloomers?

In my opinion you will likely be fine given your high savings rate, your use of tax-advantaged accounts, your use of very diversified index funds with very low expense ratios, and being debt free other than the mortgage note. Age: 41/41 with four children Tax Filing Status: Married Filing Jointly State: No income tax in MCOL area Debt: Mortgage ($267K @ 3.125% against $503K home value). Cars paid off. No CC debt. Income: $150K base salary + variable annual bonus. Last bonus was $17K (most of which went into the Roths), but this was on the high side. Savings rate: Minimum of ~$30K/year between 401(k) and HSA in payroll deductions. I try to max out his/her Roths with what's left, so ideally it's more like $45K. Investments: 401(k): $25K - Van...
by ruralavalon
Sat Mar 09, 2024 3:05 pm
Forum: Personal Investments
Topic: Finally ready to improve, consolidate and own my plan to retirement!
Replies: 27
Views: 2787

Re: Finally ready to improve, consolidate and own my plan to retirement!

yogesh wrote: Sat Mar 09, 2024 12:24 pm Taxable
$134K AAPL - sale and buy VTI eventually
$3K VTI

His 401k
410.1K BND
338.9K VOO

His Roth IRA
$159K VOO

Her 401k
$276K VOO

Her Roth IRA
$46K VOO
This adds up to $1,367k, not the "$1.583M ($1.408M investments / $175K cash)" initially stated by TX_Aggie.

That's why I asked TX_Aggie for the percentage of the total portfolio in each account, like this:
His traditional IRA, aa%
His Roth IRA, bb%
Her traditional IRA, cc%
Her Roth IRA, dd%
Total = 100%
by ruralavalon
Sat Mar 09, 2024 2:45 pm
Forum: Personal Investments
Topic: Help find Fidelity low Expense funds to: FFFIX, PABGX, ISTIX
Replies: 27
Views: 1853

Re: Help find Fidelity low Expense funds to: FFFIX, PABGX, ISTIX

Your current employer's plan offers excellent very diversified index funds with very low expense ratios, you are fortunate :D . A single BlackRock LifePath target date fund by itself would be an excellent choice, they are very diversified index funds with very low expense ratios. Morningstar (01/31/2019), Target-Date Funds Don't Get Much Better Than This . Using an allocation fund seems to insulate the investor against behavioral errors and so produce higher investor returns. Morningstar, Mind the Gap 2019 . If you want to set your own asset allocation then instead I suggest a combination of these three funds: 1) S&P 500 INDEX FUND ER, 0.010%; 2) VG IS TL INTL STK MK Stock Intl, ER 0.0600%; and 3) US BOND INDEX FUND, ER 0.030%. I sugge...
by ruralavalon
Sat Mar 09, 2024 11:30 am
Forum: Personal Investments
Topic: 16 yr old - how can I best take on high risk?
Replies: 65
Views: 5234

Re: 16 yr old - how can I best take on high risk?

High risk doesn't equal high returns, it just means high risk.
by ruralavalon
Sat Mar 09, 2024 11:22 am
Forum: Personal Investments
Topic: Finally ready to improve, consolidate and own my plan to retirement!
Replies: 27
Views: 2787

Re: Finally ready to improve, consolidate and own my plan to retirement!

For approximately size of portfolio you said "$1.583M ($1.408M investments / $175K cash)."

Please tell us what percentage of your total portfolio is currently in each account, like this:
His traditional IRA, aa%
His Roth IRA, bb%
Her traditional IRA, cc%
Her Roth IRA, dd%
Total = 100%
by ruralavalon
Sat Mar 09, 2024 10:21 am
Forum: Personal Investments
Topic: Finally ready to improve, consolidate and own my plan to retirement!
Replies: 27
Views: 2787

Re: Finally ready to improve, consolidate and own my plan to retirement!

Age: 49 yrs, 11 mos, 1wk. About to hit 50. 😰 Desired Asset allocation: ?% stocks / ?% bonds Desired International allocation: ?% of stocks I'm not sure. It's why I'm here. I feel like I lost 15 years to my EJ advisor in a massively over-conservative, high fee allocation. My gut says 80-90% stocks / 10-20% bonds / 0% international. My thought on the 0% international is that I'm technically invested internationally because stocks I own (AAPL, MSFT, GOOGL, NVDA, etc) do business internationally, and Asset allocation is a very personal decision which must be based on your ow individual ability, willingness and need to take risk. Will you be eligible for a substantial pension? In general at age 50 I would suggest around 30% of portfolio in fixe...
by ruralavalon
Fri Mar 08, 2024 10:02 pm
Forum: Personal Investments
Topic: Finally ready to improve, consolidate and own my plan to retirement!
Replies: 27
Views: 2787

Re: Finally ready to improve, consolidate and own my plan to retirement!

In my opinion the first priority is move all accounts from Edward Jones to a low cost fund provider like Vanguard, Fidelity or Schwab. Any one of the three would be a good choice in my opinion. It's largely a matter of personal preference, my personal preference is Vanguard because they offer by far the largest selection of low-cost funds and ETFs to use. Do Fidelity or Schwab have a local customer service office in your area? If so that may be a consideration in which fund firm you choose. Once you choose a low cost fund provider, call them (or go to the local customer service office). (1) Open traditional rise and Roth IRAs. Ask them to help you rollover all four IRAs from Edward Jones to the four new IRAs with the low cost provider you h...
by ruralavalon
Fri Mar 08, 2024 6:37 pm
Forum: Personal Investments
Topic: Help find Fidelity low Expense funds to: FFFIX, PABGX, ISTIX
Replies: 27
Views: 1853

Re: Help find Fidelity low Expense funds to: FFFIX, PABGX, ISTIX

Your current employer's plan offers excellent very diversified index funds with very low expense ratios, you are fortunate :D . Help in identify options to simplify my old 401k Portfolio and find something equivalent or better either in a standalone IRA or existing employer 401K Old 401K portfolio from prior employer at Fidelity (I sold other 4-5 funds and kept these 3 based on performance): FFFIX = Fidelity Advisor Freedom 2045 I (FFFIX) .75% PABGX = T. Rowe Price Blue Chip Growth Advisor Class(PABGX) 0.97%? ISTIX = Delaware Ivy Science and Technology Fund Class 1.00% There is a monthly charge of about $23.50 a Month or about $270-$300 a Year on an average balance of $115,000-$120,000. Current employer 401k is 100% SP& 500 Index fund a...
by ruralavalon
Fri Mar 08, 2024 6:14 pm
Forum: Personal Consumer Issues
Topic: [What TV Show Have You Recently Watched?]
Replies: 5973
Views: 689969

Re: [What TV Show Have You Recently Watched?]

The Alleyn Mysteries, on Amazon Prime.

This is a BBC detective series set in the late 1940's based on novels written by Ngaio Marsh. Quirky characters with obscure motives. Two seasons, nine episodes.

Recommended.
by ruralavalon
Fri Mar 08, 2024 3:02 pm
Forum: Personal Investments
Topic: Time to convert mutual funds to ETF?
Replies: 28
Views: 2293

Re: Time to convert mutual funds to ETF?

PhinanceMD wrote: Fri Mar 08, 2024 2:54 pm So you can't convert mutual fund to ETF then in the future back to a mutual fund?
Correct.
by ruralavalon
Fri Mar 08, 2024 2:59 pm
Forum: Personal Investments
Topic: Time to convert mutual funds to ETF?
Replies: 28
Views: 2293

Re: Time to convert mutual funds to ETF?

Hi all, curious what you guys think of converting my mutuals funds in taxable account: Total US Stock (VTSAX, exp 0.04%) and Total Inter Stock (VTIAX, exp 0.12%) to their respective ETFs VTI (0.03%) and VXUS (0.08%). I had avoided them in the past because of concerns about day trading etc, but it seems like a lower expense ratios and more tax efficiency? No brainer? I'm assuming it just involves a quick phone call to Vanguard. Any potential drawbacks? Those Vanguard ETFs are just a different share class of those mutual funds, and have identical tax-efficiency. The small differences in expense ratio are very likely inconsequential. So why bother to do the conversion? What is your purpose? The conversion does require a require phone call, it...
by ruralavalon
Fri Mar 08, 2024 2:50 pm
Forum: Personal Investments
Topic: 16 yr old - how can I best take on high risk?
Replies: 65
Views: 5234

Re: 16 yr old - how can I best take on high risk?

I have a 50 year time horizon so it is safe to say I am not at all worried about short-term risk. I want to take advantage of my youth to assist my returns since I have such an enormous amount of time before I think about retiring. I want to deviate from a total market fund in a way that allows me to carry risk through the years for a premium even if it is very slight. I am currently tilted small and value through AVGE. Is this the right move for me? How can I best capture risk premiums? First things first. 1) First, educate yourself. I suggest a quick education for the beginner by reading both Dr.Bernstein's short pdf book If You Can , and the wiki article "Bogleheads® investment philosophy" see the link in my signature below. I...
by ruralavalon
Fri Mar 08, 2024 2:29 pm
Forum: Personal Investments
Topic: Finally ready to improve, consolidate and own my plan to retirement!
Replies: 27
Views: 2787

Re: Finally ready to improve, consolidate and own my plan to retirement!

TX_Aggie, please amend your original post using the edit button (pencil icon near the upper right corner of your post), to add the stock names and the fund names and expense ratios of the funds you listed.

Also please add the fund names, tickers and expense ratios of all funds offered in your employer's 401k plan. We cannot suggest the better funds to use without knowing what the current available choices are.

Please don't make members who want to help you have to look up what you are talking about.
by ruralavalon
Fri Mar 08, 2024 2:19 pm
Forum: Personal Investments
Topic: Help find Fidelity low Expense funds to: FFFIX, PABGX, ISTIX
Replies: 27
Views: 1853

Re: Help find Fidelity low Expense funds to: FFFIX, PABGX, ISTIX

I am trying to simplify my and my parents portfolio (it was managed by a financial planner but did horrible). I'll stick to my portfolio in this question as I hold a prior employer 401K fund in Fidelity that I've now simplified to the 3 funds: FFFIX PABGX ISTIX What I am also keeping an eye is that they are charging about $23.50 per month on an average balance of $115,000-$120,000. I cannot seem to understand what would be equivalent ETFs or Mutual Funds that I can buy in my existing employers 401k as they are only charging $20 for the entire year? My other 401k with my current employer is 100% SP& 500 Index fund at this point. I do have a brokerage option in that and so I I'd have to sell the above funds as they cannot be transferred ...
by ruralavalon
Fri Mar 08, 2024 11:09 am
Forum: Personal Investments
Topic: 401k funds for 27 year old
Replies: 66
Views: 4550

Re: 401k funds for 27 year old

Rocinante Rider wrote: Thu Mar 07, 2024 6:37 pm
johnkgan wrote: Thu Mar 07, 2024 6:30 pm Just got back to this thread after work. Thanks a lot again for all your kind responses and the information shared. They were very educative and I will keep all of those in mind now and in future.
You are very welcome, and best of luck to you. You're off to a great financial start, and I bet that most of us wish we'd had your interest and attention to BH principles when we were your age. I know that I do.
+ 1, you will do well.

I wish I had been aware of these issues at age 27. I did not begin serious contributions to investing until my late 30s.
by ruralavalon
Fri Mar 08, 2024 11:03 am
Forum: Personal Consumer Issues
Topic: [What TV Show Have You Recently Watched?]
Replies: 5973
Views: 689969

Re: [What TV Show Have You Recently Watched?]

Bancroft, on Amazon Prime.

This is a British mystery/drama, in two seasons. "Detective Superintendent Elizabeth Bancroft (Parish) finds out her colleague, DS Katherine Stevens (Marsay) was given a cold case to solve who really killed Laura Fraser (Sacofsky) back in 1990. The investigation ties back into Bancroft's own dark past." Wikipedia.

Recommended.
by ruralavalon
Thu Mar 07, 2024 5:35 pm
Forum: Personal Investments
Topic: Help with new 401k options
Replies: 15
Views: 1252

Re: Help with new 401k options

Hi, my husband’s finally going to be eligible for a 401k at his company and they sent over his investment choices which frankly look terrible, so I wanted to get advice from the smartest people I know to help me figure out what to do. Thanks in advance for any comments! Here is some more information to help: Emergency funds: 5 months in cash Debt: we have a $320k mortgage, 2.875% interest rate, pay an extra $250/mo - I lease a car, this is the best option for me. Husbands car is owned outright and we hope to last another five years. We are saving cash to replace. Tax Filing Status: Married Filing Jointly Tax Rate: 19.5% effective Federal (total tax/AGI) not including Medicare FICA etc 6.2% State State of Residence: CT Age: 40 & 43 Desi...
by ruralavalon
Thu Mar 07, 2024 3:27 pm
Forum: Personal Investments
Topic: Help with new 401k options
Replies: 15
Views: 1252

Re: Help with new 401k options

Hi, my husband’s finally going to be eligible for a 401k at his company and they sent over his investment choices which frankly look terrible, so I wanted to get advice from the smartest people I know to help me figure out what to do. Thanks in advance for any comments! Here is some more information to help: Emergency funds: 5 months in cash Debt: we have a $320k mortgage, 2.875% interest rate, pay an extra $250/mo - I lease a car, this is the best option for me. Husbands car is owned outright and we hope to last another five years. We are saving cash to replace. Tax Filing Status: Married Filing Jointly Tax Rate: 19.5% effective Federal (total tax/AGI) not including Medicare FICA etc 6.2% State State of Residence: CT Age: 40 & 43 Desi...
by ruralavalon
Thu Mar 07, 2024 12:18 pm
Forum: Personal Investments
Topic: How to determine fund quality?
Replies: 15
Views: 776

Re: How to determine funds quality?

Hello. Within my 401k I have a international fund and a bond fund. Both are index funds with low expense ratios. So to me they seem to be good options. When I compared the funds composition to Vanguard’s they were slightly different. The bond fund seems to have fewer government bonds. And the international funds top company’s were different. Are these bond and international funds good / sufficient enough to make up a bond and international position of a portfolio? I would like to know how the quality of the fund is determined other then expense rato. I have provided both funds bellow. International https://docs.retirementpartner.com/fundov/EMPOWER_D2915A_FUNDOV.PDF Bond https://docs.retirementpartner.com/fundov/EMPOWER_D2675A_FUNDOV.PDF Th...
by ruralavalon
Thu Mar 07, 2024 12:00 pm
Forum: Personal Investments
Topic: 401 Khaos [Change in employment. How to manage 401(k)s?]
Replies: 17
Views: 1463

Re: 401 Khaos [Change in employment. How to manage 401(k)s?]

Colorado21a wrote: Wed Mar 06, 2024 3:53 pm Lots going on here and looking for some sage advice. Here’s the scoop:

1. I have a sizable 401k after 22 years with one company and was just recently laid off. 401k is with Alight.
2. My wife is leaving a company and will join a new company in May. She has a sizable 401k rollover with Fidelity, a smaller one with Voya that will be eligible for rollover, and a very small TIAA CREF 403b account.

. . . . .
Rollover decisions depend primarily on the funds offered and expenses in the new employer's plan as compared to the former employer's plans.

What funds are offered in each plan? Please give fund names, tickers and expense ratios.

In each plan what additional fees (if any) are charged plan participants?
by ruralavalon
Thu Mar 07, 2024 11:48 am
Forum: Personal Investments
Topic: 401 Khaos [Change in employment. How to manage 401(k)s?]
Replies: 17
Views: 1463

Re: 401 Khaos [Change in employment. How to manage 401(k)s?]

My concern is that we are likely paying admin fees on all these 401k accounts where if I roll them all over I can invest in index / ETF funds thru Vanguard or Fidelity and I don’t pay those at all correct? Don't just assume that the plan participants pay administrative or record keeping fees, many plans do not require that. Check to see what the current employer's plan requires. Good to know. Is there a difference to rolling over a 401k to a new employers 401k plan vs just rolling it over to an IRA that’s outside of any company’s plan? There are four more advantages to rollover of an old 401k into the current employer's plan. Move to new 401(k) . . . . . Advantages: It may clear the way to do a Backdoor Roth IRA for higher income individua...
by ruralavalon
Thu Mar 07, 2024 11:41 am
Forum: Personal Investments
Topic: New portfolio and 401k advice
Replies: 22
Views: 2340

Re: New portfolio and 401k advice

DIYtrixie wrote: Thu Mar 07, 2024 4:22 amContribution to a Roth IRA has income limits; a contribution to a Roth 401k does not.
That's correct.
by ruralavalon
Thu Mar 07, 2024 11:24 am
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 11037
Views: 2066562

Re: What Movie Have You Recently Watched?

Silver Streak, on Amazon Prime.

This is a 1976 comedy starring Gene Wilder, Jill Clayburgh and Richard Pryor, with many actors you will recognise in supporting roles.

A bookish editor of self-help books wants a quiet, peaceful train trip from Los Angeles to Chicago. He meets and falls in love with a beautiful woman, is ensnared in an art fraud conspiracy and three murders, is thrown from the train 4 times, and has many adventures.

Recommended, this is one of my favorite train movies.
by ruralavalon
Wed Mar 06, 2024 6:40 pm
Forum: Personal Investments
Topic: 401 Khaos [Change in employment. How to manage 401(k)s?]
Replies: 17
Views: 1463

Re: 401 Khaos [Change in employment. How to manage 401(k)s?]

Lots going on here and looking for some sage advice. Here’s the scoop: 1. I have a sizable 401k after 22 years with one company and was just recently laid off. 401k is with Alight. 2. My wife is leaving a company and will join a new company in May. She has a sizable 401k rollover with Fidelity, a smaller one with Voya that will be eligible for rollover, and a very small TIAA CREF 403b account. 3. We collectively have exponentially more 401k $ than Roth $. My questions are as follows: 1. Is it best to rollover the 401k’s when eligible to do so? In general rollover of old accounts with former employers is a good idea. It depends primarily on the funds to offered and expenses. If the current employer's plan offers good diversified funds with ...
by ruralavalon
Wed Mar 06, 2024 3:46 pm
Forum: Personal Investments
Topic: What Fidelity MM Account?
Replies: 7
Views: 1103

Re: What Fidelity MM Account?

DireStraits wrote: Wed Mar 06, 2024 10:33 am Trying to save myself some time and research. I'm looking for a MM account at Fidelity that has similar yields as VMFXX. I need to temporarily park some cash for my Mom in something that is liquid and is currently producing higher yields than a savings account.

I'm currently not with Fidelity, but am in the process of switching my accounts from VG.
My suggestion for temporarily parking cash at Fidelity is Fidelity® Government Money Market Fund (SPAXX), current SEC Yield = 4.96%.

The yield of Fidelity money market funds is lower than on similar money market funds at Vanguard because the Fidelity expense ratios are higher.

Fidelity Money Market Funds

Vanguard money market funds
by ruralavalon
Wed Mar 06, 2024 3:33 pm
Forum: Personal Investments
Topic: 401k funds for 27 year old
Replies: 66
Views: 4550

Re: 401k funds for 27 year old

I disagree with @ruralavalon's suggestion above on using the target date funds for two reasons. 1) Presence of 10% bonds in the target date fund, which for a 27 year old I strongly feel should NOT be there 2) Target date funds have 40% of the stocks allocation to international equities. I feel that's a bit too much, but the OP will have to make a decision whether he is ok with a 60:40 split. I don't disagree with the diversification benefit of using international equities, but should be limited to 20%. 1) I don't believe that youth by itself warrants an investor using an asset allocation of 100% stocks. 2) I agree that an asset allocation around 20-30% of stocks in international stocks is more reasonable, but nobody has created an allocati...
by ruralavalon
Wed Mar 06, 2024 3:17 pm
Forum: Personal Investments
Topic: Retired teachers seek advice moving IRAs to Roth.
Replies: 21
Views: 2107

Re: Retired teachers seek advice moving IRAs to Roth.

You said "Tax Rate: 22% Federal, 22% State". Does Louisiana really tax your income at a 23% marginal rate?

Will either or both of you be eligible for both a substantial pension and Social Security benefits?

If not then it's probably better NOT to do conversions from traditional IRAs to Roth IRAs. Most people (without a pension or very large balances in traditional tax-deferred accounts) will likely be in a lower tax bracket during retirement. So for most people traditional will likely be better than Roth.

TFB blog post, The Case Against Roth 401(k): Still True After All These Years. " I think for most people the majority, if not 100%, of the contribution should go to a Traditional 401(k). "
by ruralavalon
Tue Mar 05, 2024 1:48 pm
Forum: Personal Investments
Topic: Retired teachers seek advice moving IRAs to Roth.
Replies: 21
Views: 2107

Re: Retired teachers need some advice on this plan....

Don't take investment advice promoted with a free steak dinner . Enjoy the dinner, and forget the advice. It might (or might not) be a good idea to convert some traditional IRA to Roth IRA before you start your Required Minimum Distributions (RMDs). It all depends on facts which we don't know, such as -- What is your current tax bracket, both federal and state? How large are your annual Social Security benefits, and are the benefits indexed to inflation? How large are your annual pension benefits? How much do each of you currently have in traditional tax-deferred accounts? What accounts do you currently have, and what funds do you currently use in each account? OP, if you post your information in the "Asking Portfolio Questions" ...
by ruralavalon
Tue Mar 05, 2024 11:15 am
Forum: Personal Investments
Topic: VTI
Replies: 21
Views: 4725

Re: VTI

UpstateNY86 wrote: Thu Dec 27, 2012 2:21 pm What are the pros and cons of owning VTI verses SPY? Aren't they essentially the same thing. I have an extra 800 dollers and want to put it into my roth and then into a nice stock tracking index.
Thank You!
They are very similar, and have had very similar performance. Portfolio Visualizer, 2002-2024

Vanguard Total Stock Market ETF (VTI) ER 0.03% is more diversified and has a lower expense ratio than SPDR® S&P 500 ETF Trust (SPY) ER 0.095%.
by ruralavalon
Tue Mar 05, 2024 10:57 am
Forum: Personal Investments
Topic: Retired teachers seek advice moving IRAs to Roth.
Replies: 21
Views: 2107

Re: Retired teachers need some advice on this plan....

Welcome to the forum :) 72 and 70 yrs old. Medicare, Social Security, small state pensions are sufficient for our living expenses. We went to one of those free steak dinners and listened to investment advice. The one takeaway that I liked was the idea that we could move some of our IRAs to ROTHs before possible tax increases when the Tax Cuts and Jobs Act sunsets in January 2026.. About half of our investments in a taxed joint account is in fixed income. So, here is my plan: Move the fixed-income money into ETFs, e.g. IVV, VTI to reduce the income for 2024-2026. That would give us a larger buffer to move the IRAs to ROTHs. I realize the risk that the account could drop with the market. If that happens, I think we are healthy enough to wait ...
by ruralavalon
Tue Mar 05, 2024 10:44 am
Forum: Personal Investments
Topic: Schwab Investing Themes - Opinions?
Replies: 12
Views: 1261

Re: Schwab Investing Themes - Opinions?

Claudia Whitten wrote: Mon Mar 04, 2024 1:45 pm I see that Schwab has created investment vehicles called "thematic investing," essentially allowing investors to buy baskets of stocks with any amount above $250 around specific "themes," such as "artificial intelligence":

https://www.schwab.com/thematic-investing

https://www.investors.com/etfs-and-fund ... good-idea/

What are you opinions of such approaches?
Sounds like nonsense to me.

Seems like just a new marketing strategy for Schwab.
by ruralavalon
Tue Mar 05, 2024 10:18 am
Forum: Personal Investments
Topic: 401k funds for 27 year old
Replies: 66
Views: 4550

Re: 401k funds for 27 year old

Hi there, I request your advice: I am 27 years old. My new employer provides 401k and contributes 6%. I chose 10% contribution with 1% increase every year. I got prompted to choose the investment fund for the future contributions in Fidelity Net Benefits. I see the following options. I would appreciate your recommendation on % contribution, which fund/s to invest and %investments in those funds. Thank you! VANG TOT INTL STK IS (VTSNX) (Large Cap) FID FRDM INX 2060 T (Blended Fund investments : a list of these for every 5 years from 2005 to 2065) VANG CORE BOND ADM (Sub class: Income) VANG RET SAV TR IV (Sub class: Stable Value) VANG INST TOT STK MK (VITNX) (Saw this in the main list though I don't see this in the choices when I choose to c...
by ruralavalon
Tue Mar 05, 2024 10:03 am
Forum: Personal Investments
Topic: To buy BND or not now ??
Replies: 63
Views: 8507

Re: To buy BND or not now ??

Would you buy BND NOW in Tax deferred ? We are mostly in CDs with 4 to 5% return with quite some still left in money market in SPAXX (4.99% yield). We are retired, 67 DW is 62, AA is 70/30 Thanks Currently bond fund share prices are low and yields are high. Now is a better time than usual to buy something like Vanguard Total Bond Market ETF (BND), current SEC Yield = 4.53%. Morningstar (10/02/2023), At Long Last, Bonds Once Again Matter . "For the first time in many years, U.S. bonds now merit consideration from total-return investors." What about for those of us who ‘stay the course’ and did not sell in 2022? Should we hold and wait for recovery (7 yrs?), buy more BND, or sell and move $$ to tbills? In tax deferred space. Don't ...
by ruralavalon
Tue Mar 05, 2024 9:57 am
Forum: Personal Investments
Topic: Good or bad time to invest in S&P 500 for Roth IRA?
Replies: 30
Views: 3804

Re: Good or bad time to invest in S&P 500 for Roth IRA?

Hello, Thanks so much for all of the replies, they are very helpful. As the name suggests, I am a very new investor. The Roth IRA I opened only last year was my first actual investments other than just keeping cash in a savings or checking account. So, I am still learning as I go along. In addition to the Roth IRA, I currently have 47,500$ in a high yield savings account with 4.35% APY. I also have about 9000$ in another checking account (that's what I'll use to transfer the 7,500$ from). I also have an I-bond, which has grown to a value of 10,800$. I am in the 12% tax bracket (single filer) 4-6% state taxes (California) and will still have to pay taxes (independent contractor), I assume about 3000$-4000$, so that will reduce my overall as...
by ruralavalon
Tue Mar 05, 2024 9:38 am
Forum: Personal Investments
Topic: How to construct 3 fund portfolio.
Replies: 16
Views: 1917

Re: How to construct 3 fund portfolio.

Is it reasonable / possible to only use one account to rebalance? Yes it's both reasonable and practical. It's best to have at least one large tax-advantaged account which receives large annual contributions, so that rebalancing can easily be done in that one account. Currently that would be your traditional IRA at Vanguard (49% of portfolio). In the future, after years of contributions, that might be your 401k account. Thank you for answering. Hypothetically after years of using the traditional IRA to rebalance would it be a good idea to work towards only holding bonds within that account? And only holding a total US stock market within the Roth account and eventually having the 401k as the only account to hold all three funds, (internati...
by ruralavalon
Mon Mar 04, 2024 3:33 pm
Forum: Personal Investments
Topic: How to construct 3 fund portfolio.
Replies: 16
Views: 1917

Re: How to construct 3 fund portfolio.

Thelastmileoftheway wrote: Mon Mar 04, 2024 2:32 pmIs it reasonable / possible to only use one account to rebalance?
Yes it's both reasonable and practical.

It's best to have at least one large tax-advantaged account which receives large annual contributions, so that rebalancing can easily be done in that one account.

Currently that would be your traditional IRA at Vanguard (49% of portfolio).

In the future, after years of contributions, that might be your 401k account.
by ruralavalon
Mon Mar 04, 2024 11:04 am
Forum: Personal Investments
Topic: Fidelity 500 Index Fund (FXAIX) vs. Schwab S&P 500 Index (SWPPX) vs. VOO vs. Vanguard 500 Index Fund Adm Shares (VFIAX)
Replies: 20
Views: 3097

Re: Fidelity 500 Index Fund (FXAIX) vs. Schwab S&P 500 Index (SWPPX) vs. VOO vs. Vanguard 500 Index Fund Adm Shares (VFI

sycamore wrote: Mon Mar 04, 2024 10:57 am
terran wrote: Mon Mar 04, 2024 9:35 am ...and Portfolio Visualizer only allows three portfolios at a time.
FYI, You can include a fourth fund by changing the Benchmark from None to Specify Ticker. Like so: https://www.portfoliovisualizer.com/bac ... mW5AAdxA9a
Thank you for this information :D
by ruralavalon
Mon Mar 04, 2024 11:01 am
Forum: Personal Investments
Topic: How to construct 3 fund portfolio.
Replies: 16
Views: 1917

Re: How to construct 3 fund portfolio.

Hello, I am currently invested primarily in target date funds throughout my portfolio, so my knowledge about investing is limited. I just wish to understand more about creating a 3 fund portfolio across various accounts. I understand that you need to look at all of your accounts as a whole. I wish to understand more about fund placement and rebalancing across multiple accounts. I intend to stay invested in target date funds, I just would like to know if I understand the concepts. If I were to create a 3 fund portfolio how would I accomplish this? This is my current portfolio. 401k 2065 target date fund expense ratio 0.07 13% of portfolio Roth IRA at Vanguard Target retirement 2055 (VFFVX) expense ratio 0.08 38% of portfolio Tradition IRA a...
by ruralavalon
Mon Mar 04, 2024 10:31 am
Forum: Personal Investments
Topic: To buy BND or not now ??
Replies: 63
Views: 8507

Re: To buy BND or not now ??

Rajsx wrote: Sat Dec 16, 2023 4:16 pm Would you buy BND NOW in Tax deferred ?

We are mostly in CDs with 4 to 5% return with quite some still left in money market in SPAXX (4.99% yield).

We are retired, 67 DW is 62, AA is 70/30

Thanks
Currently bond fund share prices are low and yields are high. Now is a better time than usual to buy something like Vanguard Total Bond Market ETF (BND), current SEC Yield = 4.53%.

Morningstar (10/02/2023), At Long Last, Bonds Once Again Matter. "For the first time in many years, U.S. bonds now merit consideration from total-return investors."
by ruralavalon
Mon Mar 04, 2024 10:09 am
Forum: Personal Investments
Topic: Is it good time to start investing in S&P 500 index fund
Replies: 12
Views: 2707

Re: Is it good time to start investing in S&P 500 index fund

Welcome to the forum :D . I also suggest you start a new thread in the Personal Investments forum and post your portfolio information in that thread using the Asking Portfolio Questions format.) I am a complete newbie to investing and have been reading about S&P 500 index funds as good for beginners. But recent S&P highs makes me rethink if it’s a good time to invest or wait for it to fall before making the 1st investment. I have about $10,000 to start and would appreciate any suggestions on how to start. In my opinion almost any investing question using the word "time" is probably the wrong question. In there a retirement plan offered at work (like a 401k, 403b, 457b, SEP, SIMPLE IRA, TSP, etc )? If so is there an employe...
by ruralavalon
Mon Mar 04, 2024 9:57 am
Forum: Personal Investments
Topic: Good or bad time to invest in S&P 500 for Roth IRA?
Replies: 30
Views: 3804

Re: Good or bad time to invest in S&P 500 for Roth IRA?

Hi, Last year, I opened my first Roth IRA. I funded it with the max 7000$, putting 3000$ into VASGX fund and 4000$ into VFIAX fund. The market was more sluggish then, but now stocks seem to be hot and my 7000$ have grown to about 8500$ in about a year, for a nice return. Now it's time to fund the Roth for 2023, and I was wondering if I should invest again in the same funds. I assume the great returns I got right now are due to the fact that I invested in the funds when the markets were low. So, if I invest in these funds now that the markets are hot, would I not set myself up for losses as soon as the market cools down again? Basically, the opposite of what happened with my first investment? Should I rather invest in something else and wai...
by ruralavalon
Mon Mar 04, 2024 9:22 am
Forum: Personal Investments
Topic: Fidelity 500 Index Fund (FXAIX) vs. Schwab S&P 500 Index (SWPPX) vs. VOO vs. Vanguard 500 Index Fund Adm Shares (VFIAX)
Replies: 20
Views: 3097

Re: Fidelity 500 Index Fund (FXAIX) vs. Schwab S&P 500 Index (SWPPX) vs. VOO vs. Vanguard 500 Index Fund Adm Shares (VFI

Expense ratios: Fidelity 500 Index Fund (FXAIX): 0.01% Schwab S&P 500 Index (SWPPX): 0.02% Vanguard S&P 500 ETF (VOO): 0.03% Vanguard 500 Index Fund Admiral Shares (VFIAX): 0.04% One would expect the fund with the lowest expense ratio to perform better, right? Well, check a comparison chart of these four and let me know your thoughts, please. While they're often neck-and-neck, sometimes one outperforms the others over a given timeframe, and it's not the one with the lowest expense ratio. This begs the question: Are there factors other than expense ratio that we should consider when evaluating funds that track the same index? The expense ratio differences are too small to be important. Just use the one native to the fund company whe...
by ruralavalon
Mon Mar 04, 2024 9:13 am
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 5249
Views: 900060

Re: What are you up YTD? [Year To Date]

HeavyChevy wrote: Mon Mar 04, 2024 5:51 am Two months in, up nearly exactly 1X, or one year's expenses.
Me too, up almost exactly one year of retirement spending needs.
by ruralavalon
Sun Mar 03, 2024 11:13 am
Forum: Personal Investments
Topic: Should we consider a Roth 401k?
Replies: 8
Views: 467

Re: Should we consider a Roth 401k?

Is there a rule of thumb or any specific guidelines to help someone understand if a Roth 401k makes sense for their personal financial situation? I understand there are a number of variables that go into deciding to utilize a roth 401k vs traditional 401k. We are currently 42 and 41 with a young child with the following assets. 1.1M in traditional 401k 225k in taxable brokerage 175k Roth 15K HSA 15K 529 140k Cash in a MM earning 5.4% 100k equity in home / 220k mortgage remaining locked in a 3% on a 30 year. More information is needed. What is your current tax bracket, both federal and state? Will either of both of you be eligible for both a substantial pension and Social Security benefits? What are your professions or occupations? Most peo...
by ruralavalon
Sun Mar 03, 2024 11:02 am
Forum: Personal Investments
Topic: New portfolio and 401k advice
Replies: 22
Views: 2340

Re: New portfolio and 401k advice

Example portfolio. Here is an example portfolio that you could consider. This is a three-fund type portfolio. Current portfolio size = $265k. New annual contributions = about $83k. The asset allocation is: 20% bonds; 20% international stocks; and 60% domestic stocks. The percentages given are percentages of the total portfolio, not of a given account. The suggestion is to switch both the existing balances and the new contributions to the funds indicated. Sometimes I state 00% to indicate funds you might want to add in the future. Taxable account @ Vanguard (71% of portfolio) 41%, Vanguard Total Stock Market Index Fund (VTSAX), the ETF share class is VTI 20%, Vanguard Total International Stock Index Fund (VTIAX), the ETF share class is VXUS...
by ruralavalon
Sat Mar 02, 2024 2:49 pm
Forum: Personal Investments
Topic: New portfolio and 401k advice
Replies: 22
Views: 2340

Re: New portfolio and 401k advice

When logging into my 401k portal, I noticed there was a slider to adjust Roth contributions. However, I have been under the assumption that I wasn't eligible to make Roth contributions due to exceeding incoming limits, unless through a backdoor Roth contribution, which I am still learning. . . . . You can make Roth contributions to a 401k regardless of your level of income. Be sure to investigate the rest of the questions I asked. If your employer's plan contains the elements necessary for a Mega-Backdoor Roth , then you contribute much more to your 401k account. Yes, my employer offers HSA (admittedly, I need to educate myself more on this), and HDHP, which I won't be able to enroll in until next year but something I need to research and ...
by ruralavalon
Sat Mar 02, 2024 9:13 am
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 5249
Views: 900060

Re: What are you up YTD? [Year To Date]

I take 1/12 of my annual Required Minimum Distribution (RMD) automatically paid each month directly to my bank checking account. That plus my monthly Social Security benefit (also automatically deposited in my bank checking account) more than covers my retirement spending needs/wants. So since this "more than covers", I suppose you take the excess at the end of the year and reinvest it? Give it away? Spend it? "More than covers" includes my charitable donations. For the excess I either reinvest, spend on Christmas presents, or splurge on something like a trip. Last year the splurge included a new desktop computer and a new television. Year before last the excess was all reinvested. This year probably a nice trip.
by ruralavalon
Sat Mar 02, 2024 9:09 am
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 11037
Views: 2066562

Re: What Movie Have You Recently Watched?

Mr. Holmes, on Amazon Prime.

This is a mystery set in rural Sussex in 1947. Sherlock Holmes has been retired 30 years and lives in a farmhouse with a housekeeper and her young son. Holmes keeps bees to occupy his time. He struggles to reconstruct his last case (shown in flashbacks). His mind is deteriorating.

Recommended.
by ruralavalon
Sat Mar 02, 2024 8:47 am
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 5249
Views: 900060

Re: What are you up YTD? [Year To Date]

bgf wrote: Fri Mar 01, 2024 4:35 pm
ruralavalon wrote: Fri Mar 01, 2024 10:55 am Age 78 retired,no pension or annuity, my asset allocation is 60/40.

Total return of my portfolio is + 3.36% year to date.

That's about my expected withdrawal rate for the entire year.
Would you consider just selling what you need for the year now and locking up a full years expenses with zero risk?
No. I like my simple, automatic, no-hassle system.

I take 1/12 of my annual Required Minimum Distribution (RMD) automatically paid each month directly to my bank checking account. That plus my monthly Social Security benefit (also automatically deposited in my bank checking account) more than covers my retirement spending needs/wants.