Help With First Time Rebalance

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vds443
Posts: 1
Joined: Fri Jan 12, 2018 3:09 pm

Help With First Time Rebalance

Post by vds443 » Fri Jan 12, 2018 4:50 pm

Hi Everyone,

First time poster here! I have been very passive with my retirement accounts and this year I am trying to get a handle on them. I would like to do a full rebalance across my retirement accounts and focus on low fee funds, something I haven't done since I started my career. Any advice or help selecting funds would be appreciated. Thanks!

Current Situation
Emergency funds: 3 months
Debt: 0
Tax Filing Status: Married Filing Jointly
Age: 28
Desired Asset allocation: 90% stocks / 10% bonds
Desired International allocation: 30% of stocks

Current retirement assets

Current 401k
Value: ~10k
Yearly Contriubtions: ~12k

Old 401k
Value: ~75k
Yearly Contributions: 0

Roth IRA
Value: ~30k
Yearly Contributions: $5.5k
Current Allocation:
Fidelity® Total Market Index Fund - Premium Class FSTVX 0.04% 59%
Fidelity® Total International Index Fund - Premium Class FTIPX 0.10% 33%
Fidelity® U.S. Bond Index Fund - Investor Class FBIDX 0.14% 8.00%

Available Funds:

Current 401k (Fidelity):
Fidelity® Contrafund® Commingled Pool 0.43%
Franklin Mutual Shares Fund Class R6 FMSHX 0.68%
Vanguard Institutional Index Fund Institutional Plus Shares VIIIX 0.02%
Fidelity® Low-Priced Stock Commingled Pool 0.48%
Fidelity® Mid-Cap Stock Commingled Pool 0.43%
WTC-CIF II Small Cap Opportunities Portfolio 0.87%
Fidelity® International Capital Appreciation K6 Fund FAPCX 0.65%
Vanguard FTSE All-World ex-US Index Fund Institutional Plus Shares VFWPX 0.07%
Virtus Ceredex Large-Cap Value Equity Fund Class R6 STVZX 0.86%
Strategic Allocation TOPS TM Aggressive Growth Portfolio 0.51%
Strategic Allocation TOPS TM Growth Portfolio 0.54%
Fidelity® Puritan® Fund - Class K FPUKX 0.46%
PIMCO All Asset Fund Institutional Class PAAIX 0.87%
Strategic Allocation TOPS TM Balanced Portfolio 0.56%
Strategic Allocation TOPS TM Conservative Portfolio 0.57%
Strategic Allocation TOPS TM Income and Growth Portfolio 0.55%
Strategic Allocation TOPS TM Moderate Growth Portfolio 0.56%
T. Rowe Price Retirement 2055 Trust (Class C) 0.38%
Vanguard Wellesley® Income Fund Admiral™ Shares VWIAX 0.15%
Vanguard Wellington™ Fund Admiral™ Shares VWENX 0.16%
Managed Income Portfolio II Class 4 0.37%
Fidelity® Limited Term Government Fund FFXSX 0.45%
Invesco Core Plus Fixed Income Trust - Class I 0.35%
PIMCO Low Duration Fund Institutional Class PTLDX 0.46%
Vanguard Total Bond Market Index Fund Institutional Shares VBTIX 0.04%
Vanguard Inflation-Protected Securities Fund Institutional Shares VIPIX 0.07%
Fidelity® Investments Money Market Government Portfolio - Institutional Class FRGXX 0.18%

Old 401k (Fidelity):
Fidelity® Contrafund® Commingled Pool 0.43%
T. Rowe Price Equity Income Fund PRFDX 0.66%
T. Rowe Price Institutional Large Cap Growth Fund TRLGX 0.56%
Vanguard Institutional Index Fund Institutional Shares VINIX 0.04%
Artisan Mid Cap Fund Institutional Class APHMX 0.95%
Fidelity® Extended Market Index Fund - Premium Class FSEVX 0.07%
Hotchkis & Wiley Mid-Cap Value Fund Class I HWMIX 1.03%
American Beacon Small Cap Value Fund Class Institutional AVFIX 0.84%
American Funds New Perspective Fund® Class R-6 RNPGX 0.45%
Fidelity® Diversified International Commingled Pool 0.58%
Fidelity® Global ex U.S. Index Fund - Institutional Class 0.08%
FIAM Index Target Date 2055 Commingled Pool Class Y 0.07%
FIAM Index Target Date Income Commingled Pool Class Y 0.07%
Managed Income Portfolio II Class 1 0.57%
PIMCO Total Return Fund Institutional Class PTTRX 0.46%
Vanguard Total Bond Market Index Fund Institutional Shares VBTIX 0.04%
Vanguard Inflation-Protected Securities Fund Admiral Shares VAIPX 0.10%
Fidelity® Government Money Market Fund SPAXX 0.42%


Questions:
1. How should I allocate my 401k funds?
2. What are your thoughts on my old 401k? Should I leave as is? Or roll it into my new 401k or TIRA?

Thank you!!

mega317
Posts: 2554
Joined: Tue Apr 19, 2016 10:55 am

Re: Help With First Time Rebalance

Post by mega317 » Fri Jan 12, 2018 5:00 pm

I would put all of your bonds in a 401k in VBTIX, and distribute your US and international stocks among the other accounts in any old way. I haven't read any of the prospectuses except for the funds you have in your Roth, but I don't see a reason to use anything with ER > 0.08%. The new plan is a good one so if you can I'd roll the old one over for simplicity, but it matters not.

Now, a separate answer to the question "how should I allocate" is that my opinion is you should have a slightly higher bond allocation. But not a huge deal.

I would also increase the emergency fund a bit unless you have a compelling reason not to.

TravelforFun
Posts: 1466
Joined: Tue Dec 04, 2012 11:05 pm

Re: Help With First Time Rebalance

Post by TravelforFun » Fri Jan 12, 2018 5:42 pm

vds443 wrote:
Fri Jan 12, 2018 4:50 pm

Questions:
1. How should I allocate my 401k funds?
2. What are your thoughts on my old 401k? Should I leave as is? Or roll it into my new 401k or TIRA?

Thank you!!
Currently you have $115K and per your desired AA, you should have $69K in US stocks, $35K in international, and $11K in bonds/cash. This is what I would do:

Rollover your old 401k ($75K) to an IRA where your choices of funds are better.

Your Roth has Fidelity® Total Market Index Fund - Premium Class FSTVX. Put the entire amount ($30K) on it. No bonds in this account since you want this account to grow faster than the other accounts because Roth growth is tax-free.

Your new rollover IRA will have $75K, put $35K on a no-load international index fund,and $40K on VTSMX

Move money in your current 401k ($10K) to a no-load index bond fund

Future contributions can be divided based on your AA or put on one fund and re-balance every few months.

TravelfoFund

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