Allocation update help

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mossyroc
Posts: 17
Joined: Fri Mar 24, 2017 11:49 am

Allocation update help

Post by mossyroc » Fri May 19, 2017 1:30 pm

Emergency funds: Three-ish months
Debt: 30k student loans (but as an RN working with underserved pop. I should be able to get 65-80% forgiven)
Student loan interest rate: 3.76%
Tax Filing Status: single
Tax Rate: 25% Federal, 0% State
State of Residence: WA
Age: 32
Desired Asset allocation: 70% stocks / 30% bonds
Desired International allocation: 20% of stocks

Portfolio size: $4500 new investor


403b: Mutual of America Equity Index Fund (S&P 500)
Company match: base contribution of 3% income, additional 50% match of contributions up to another 4%
*(Image below shows screen shot of current plan options)*
Personal 10% contribution: $504 per month

*Info on plans below question*

Salary: ~55k/year


Questions:
1. I will continue doing around 16% of income in MoA S&P500, but will also be receiving an aprox. 10k windfall, where I want to invest in a Vanguard Roth IRA. Should I contribute to their total international stock index for $3k, with the intention of not contributing to it for a while so my S&P can catch up to 80% of stock allocation, or is there another recommendation. Should I contribute my first Roth as total international stock, total bond, or a total stock market index? I will be putting remainder of saving in a 1% Aspiration account, since I want to be able to buy property in the next few years. I don't know how I should approach inserting the bond index into it.

2. What are some other recommendations that I may be missing?

Separate Account Equity Funds
Mutual of America Equity Index 0.5% S&P 500 http://www.mutualofamerica.com/FundDeta ... Number=013
Mutual of America All America Fund 0.9% S&P Mid Cap 400 http://www.mutualofamerica.com/FundDeta ... Number=013
Mutual of America Mid-Cap Equity Index Fund 0.51%
Mutual of America Small Cap Value Fund 1.18%
Mutual of America Small Cap Growth Fund 1.18%
Mutual of America Mid Cap Value Fund 1%
Mutual of America International Fund 0.71%
Fidelity® VIP Equity-Income Portfolio 0.78%
Fidelity® VIP Contrafund® Portfolio 0.87%
Fidelity® VIP Mid Cap Portfolio 0.88%
Vanguard VIF Diversified Value Portfolio 0.63%
Vanguard VIF International Portfolio 0.75%
Deutsche Variable Series I Capital Growth VIP 0.84%
Oppenheimer Main Street Fund®/VA 1.13%
American Century VP Capital Appreciation Fund 1.1%
American Funds Insurance Series® New World Fund 1.14%
T. Rowe Price Blue Chip Growth Portfolio 1.05%

Separate Account Fixed Income Funds
Mutual of America Bond Fund 0.8% http://www.mutualofamerica.com/FundDeta ... Number=013
Mutual of America Money Market Fund 0.61%
Mutual of America Mid-Term Bond Fund 0.81% http://www.mutualofamerica.com/FundDeta ... Number=013
PIMCO VIT Real Return Portfolio 0.88%

Separate Account Real Estate Investment Trust (REIT)
Vanguard VIF REIT Index Portfolio 0.62%

Separate Account Balanced Funds
Mutual of America Composite Fund 0.88%
Fidelity® VIP Asset Manager Portfolio 0.86%
Calvert VP SRI Balanced Portfolio 1.19%

Separate Account Asset Allocation Funds
Mutual of America Conservative Allocation Fund 0.72% http://www.mutualofamerica.com/FundDeta ... Number=013
Mutual of America Moderate Allocation Fund 0.64% http://www.mutualofamerica.com/FundDeta ... Number=013
Mutual of America Aggressive Allocation Fund 0.65% http://www.mutualofamerica.com/FundDeta ... Number=013

Separate Account Retirement Funds
Mutual of America Retirement Income Fund 0.77%
Mutual of America 2010 Retirement Fund 0.73%
Mutual of America 2015 Retirement Fund 0.75%
Mutual of America 2020 Retirement Fund 0.73%
Mutual of America 2025 Retirement Fund 0.71%
Mutual of America 2030 Retirement Fund 0.7%
Mutual of America 2035 Retirement Fund 0.7%
Mutual of America 2040 Retirement Fund 0.71%
Mutual of America 2045 Retirement Fund 0.72%
Mutual of America 2050 Retirement Fund 0.71%
Mutual of America 2055 Retirement Fund 0%
Last edited by mossyroc on Fri May 19, 2017 2:40 pm, edited 1 time in total.

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ruralavalon
Posts: 10930
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: Allocation update help

Post by ruralavalon » Fri May 19, 2017 2:07 pm

Your post does not include the "image below shows screen shot of current plan options".

What is the interest rate on your student loans?

That's a nice combination of employer match and employer contribution.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

mossyroc
Posts: 17
Joined: Fri Mar 24, 2017 11:49 am

Re: Allocation update help

Post by mossyroc » Fri May 19, 2017 2:42 pm

Thanks for the reminder! I editing that info on the original post. Thank you Avalon for being the original person to help me out. I tried to follow your advice as best I could original to align with my situation. Youre probably already familiar with the Vanguard index funds :)

Lou354
Posts: 441
Joined: Sun Apr 03, 2016 10:51 pm

Re: Allocation update help

Post by Lou354 » Fri May 19, 2017 2:49 pm

Contribute the full $5500 to Roth IRA,choosing a balanced fund or target date fund so your overall portfolio approximately matches your desired asset allocation.

User avatar
ruralavalon
Posts: 10930
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: Allocation update help

Post by ruralavalon » Fri May 19, 2017 3:22 pm

I suggest opening a Roth IRA at Vanguard. Contribute $5.5k to the Roth IRA now from the windfall for your 2017 contribution, and invest in Vanguard LifeStrategy Conservative Growth Fund (VASCX) which has a 40/60 asset allocation.

That and your the $4.5k 100% in the S&P 500 fund in your 403b will overall give you about the 70/30 asset allocation that is your target.

For the other $4.5k left from the $10k windfall, you could add that to your emergency fund. In January 2018 consider contributing some or all of that leftover money from the windfall to your Roth IRA to start your contribution for 2018. Then next year you can consider changing to the bond and international index funds in the Roth IRA.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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