Need advise with investing plan.

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palciparum
Posts: 21
Joined: Wed Jun 21, 2017 6:51 pm

Need advise with investing plan.

Post by palciparum » Mon Oct 22, 2018 3:43 pm

Dear Forum Members,

I need help with asset allocation.

We are 40 years old. My spouse has 110K in 401K and I have 93K in 401K. We don't own the house (still rent as not settled at one place). We have no debt. We max out 401 k.

My wife has HSA account with 6K in it. Not invested yet.

We Vanguard account which has:

Vanguard Total Stock Market Index Fund Admiral Shares for ~ 17K & Stocks ~ 113K (mostly AMZN ~ 90K)

I don't have 401 K plan with current employer (Employer 3) who I recently joined. I will be able to participate in April, 2019.

I have 18K in company retirement account with my last employer (Employer 2) with Charles Schwab and I can invest is the way I like/free trade. I have 401 K with employer (Employer 1) before that. I asked about rolling over my previous 401K to retirement account with last employer. His reply was, it will be best to rollover to 401K with current employer (Employer 3) in 2019.

I have 93K in 401 K with Employer 1. It is John Hancock Pension plan. My investment is 100% in JH Multimanager Growth LS. My rate of return for 1 month is -5.69%, 3 months is -4.55%, 6 months is -3.26% and 12 months is -2.12%.

My spouse has 110K in Securian Retirement Account in 401K with her ex-employer. She will be able to participate in 401k with current employer in 2019. Personal rate of return is 6.59 5 YTD and in last 12 months 11.69%

We don't have IRA accounts.


We would appreciate any recommendation/advise from the forum as to what to do with recently changing employers and waiting to enroll in 401K again in 2019, how to do asset allocation, including using HSA account and should we open IRA accounts? Any other advise too will be greatly appreciated.

Thank You

palciparum
Posts: 21
Joined: Wed Jun 21, 2017 6:51 pm

Re: Need advise with investing plan.

Post by palciparum » Mon Oct 22, 2018 4:43 pm

My spouse 401K plan is Target Age:

Minnesota Life Guaranteed Return Account 16%
Advantus S&P 500/Citigroup Growth 26%
DFA US Large Cap Value I 26%
Janus Henderson Triton NDFA US Large Cap Value I 8%
DFA US Targeted Value 8%
T. Rowe Price International Stock 7%
Dodge & Cox International Stock 9%



Plan Options are:

Stable Value
Minnesota Life Guaranteed Return Account

Investment YTD 1 yr 3 yr 5 yr 10 yr Expense

General Bond
Templeton Global Bond 2.61 10.23 1.00 4.31 5.98 0.87
Hotchkis & Wiley High Yield 5.25 14.90 3.89 6.96 — 1.04
Dodge & Cox Income 2.42 4.24 2.47 3.03 4.55 0.84


US Stock

Advantus S&P 500® Index 8.39 16.78 9.50 14.67 6.19 0.53
Janus Opportunistic Growth 14.42 16.48 10.58 15.73 9.81 0.89
Advantus S&P 500/Citigroup Growth 13.46 18.60 11.24 15.34 8.00 0.59
DFA US Large Cap Value 3.89 18.18 7.41 16.32 5.21 0.76
Dodge & Cox Stock 5.13 22.99 8.56 16.75 4.99 0.91
DFA US Social Core Equity 2 Portfolio 4.24 17.58 6.68 13.90 — 0.77
American Century Equity Income 4.92 13.89 9.94 12.98 6.32 1.08
Vanguard Extended Market Index Admiral 4.71 18.12 7.10 13.89 6.57 0.57
Janus Henderson Triton 10.82 17.40 11.01 14.90 10.65 1.17
DFA US Targeted Value -3.83 15.42 4.88 14.05 5.36 0.86
DFA US Small Cap -0.87 17.27 7.44 14.33 6.85 0.86


International Stock
Vanguard Total Intl Stock Index Admiral 13.98 17.79 1.31 8.27 0.54 0.55
T. Rowe Price International Stock 17.89 18.68 3.97 9.48 2.40 1.13
DFA International Small Company 15.03 17.50 4.37 12.32 2.94 0.96
Dodge & Cox International Stock 14.69 25.52 0.76 11.27 1.93 0.96

Strategic / Alternatives
DFA Commodity Strategy Institutional -4.17 -0.95 -13.63 -7.18 — 0.82
T. Rowe Price Health Sciences 12.89 9.28 11.79 20.64 13.92 1.11
Vanguard REIT Index Admiral 0.26 2.15 7.18 9.42 4.25 0.61

Balanced
PineBridge Dynamic Asset Allc Instl 5.34 6.29 2.17 6.15 5.63 1.

palciparum
Posts: 21
Joined: Wed Jun 21, 2017 6:51 pm

Re: Need advise with investing plan.

Post by palciparum » Mon Oct 22, 2018 4:56 pm

I cannot format it and correctly post 401 K plan options on this forum:

I have also posted it at WCI - the link is

https://www.whitecoatinvestor.com/forum ... pic-159040

Will appreciate advise and input.

Thank you to all.

palciparum
Posts: 21
Joined: Wed Jun 21, 2017 6:51 pm

Re: Need advise with investing plan.

Post by palciparum » Wed Oct 24, 2018 1:07 pm

No replies?

Did I post it incorrectly or not on the right board?

Any suggestions.

Thank You.

sco
Posts: 806
Joined: Thu Sep 24, 2015 2:28 pm

Re: Need advise with investing plan.

Post by sco » Wed Oct 24, 2018 11:24 pm

What exactly is the question?

Are you asking for help determining your asset allocation across all portfolios? For Example a 60/40 Stock/Bond Split?

Or have you determined this already, and are asking how to implement this in the accounts that you have available to you?

Flyer24
Posts: 375
Joined: Sun Apr 08, 2018 4:21 pm

Re: Need advise with investing plan.

Post by Flyer24 » Wed Oct 24, 2018 11:34 pm

You need to go ahead and start an IRA. Your wife should have one too.

krow36
Posts: 1897
Joined: Fri Jan 30, 2015 6:05 pm
Location: WA

Re: Need advise with investing plan.

Post by krow36 » Thu Oct 25, 2018 1:54 am

You have been asked to use the format several times in your threads.
viewtopic.php?f=1&t=6212
You’ve given us very incomplete information. If you have a question on how to use the format, please ask.

We are missing most of this information:
Emergency funds: Three to six months of expenses (indicate if you have this, but it is generally not part of your asset allocation)
Debt: Indicate if you have any debt (credit card, school loans, car loans, mortgage) and the interest rate you are paying on each loan.
Tax Filing Status: (Single, Married Filing Jointly, Married Filing Separately, Head of Household, Qualifying Widow/Widower with Dependent Children)
Tax Rate: xx% Federal, xx% State
State of Residence:
Age:
Desired Asset allocation: xx% stocks / xx% bonds
Desired International allocation: xx% of stocks
I think you and/or your spouse are physicians. We need your investments organized in this sort of format:

Taxable account at Vanguard
Total Stock Mkt Index, 17k
AMZN, 90k
Stocks, 6k
Your 401k #1, previous employer, at John Hancock, 93k
What is this invested in? Please give name, ticker and expense ratio. We do not need the returns over YTD, 1, 3, 5, 10 years.
Your 401k #2, previous employer, at Schwab, 18k
What is this invested in? Please give name, ticker and expense ratio. We do not need the returns over YTD, 1, 3, 5, 10 years.
Your 401k #3, current employer, not able to contribute until 2019
Please give name, ticker and expense ratio of the funds available. We do not need the returns over YTD, 1, 3, 5, 10 years.
Spouse’s 401k, Securian Retirement Account, 110k
Target Date fund? What is its ticker and expense ratio?
Spouse’s HSA, 6k

I agree that you should roll over your #1 and #2 401k accounts to your current employer’s 401k once you can contribute. You need to list the funds available in #3. Hopefully it has good low-cost funds with expense ratios (ERs) less than about 0.2%.

I would continue to add to your taxable account until your 401k #3 is going, then prioritize those 401k contributions. If you can contribute more than 18.5k towards retirement, then add to the taxable account. I think it’s a mistake to buy individual stocks and you would be much better off using only the Total Stock Mkt Index fund. Can you sell your stocks at a loss at this time? You should consider doing so and investing in TSM instead. Some percentage of the taxable account could be invested in Total International Stock Mkt Index fund to increase your diversification.

We need a rough idea of your joint income in order to help you with IRAs. Your income may be too high to be able to deduct a traditional IRA. And it may be too high to contribute directly to a Roth IRA. I’m not sure you are ready to use the “backdoor Roth IRA” process which allows an indirect Roth IRA contribution regardless of income. It requires accurately filling out Form 8606 every year and it's common to make a mistake. Maybe you won't need the backdoor yet?

palciparum
Posts: 21
Joined: Wed Jun 21, 2017 6:51 pm

Re: Need advise with investing plan.

Post by palciparum » Fri Oct 26, 2018 7:52 pm

Thanks for the reply. I hope now i am writing in correct format.

Emergency funds: Three to six months of expenses Yes

Debt: None

Tax Filing Status: Married Filing Jointly

Tax Rate: 33% Federal, None (Texas) State

State of Residence: Texas

Age: 41 and 40

Desired Asset allocation: xx% stocks / xx% bonds Can you please recommend

Desired International allocation: Can you please recommend

Current retirement assets

Taxable account at Vanguard
Total Stock Mkt Index, 17k
AMZN, 90k
Stocks, 6k

His 401k #1, previous employer, at John Hancock, 93k
What is this invested in? JTGIX, expense ratio 0.48


His 401k #2, previous employer, at Schwab, 18k
What is this invested in? Not invested yet, it's in cash. Can invest anyway in any stock/funds/bonds as I choose to.

His 401k #3, current employer, not able to contribute until 2019
Mass Mutual. Don't have any other information.

Spouse’s 401k, Securian Retirement Account, 110k
Target Date fund? What is its ticker and expense ratio? Can not find Ticker and Expense ratio
Spouse’s HSA, 6k

Combined annual earnings: 400K

Don't own a house, no debt, saved cash to buy a house.

No IRA or any other investments

I am waiting to hear my Employer 2 if I can move 401K from Employer 1 till April, 2019 as there I can choose to invest in any way I want.

With current market, going dow, I wonder what should I do? How to change assist allocation etc

Would appreciate the advice from forum members

Thank You

Flyer24
Posts: 375
Joined: Sun Apr 08, 2018 4:21 pm

Re: Need advise with investing plan.

Post by Flyer24 » Fri Oct 26, 2018 8:06 pm

60% Domestic Equities
15% International Equities
25% Bonds

Don’t try to time the market. You are still accumulating shares. So any drop in the market is actually good for you because you just bought more shares for your money.

krow36
Posts: 1897
Joined: Fri Jan 30, 2015 6:05 pm
Location: WA

Re: Need advise with investing plan.

Post by krow36 » Fri Oct 26, 2018 10:28 pm

In your 401k #1, JTGIX is Multimanager Lifestyle Growth Portfolio, ~75/25 stocks/bonds, ER 0.48%

At your age, I think an asset allocation between 60% stocks, 40% bonds and 80/20 is reasonable. It is a personal decision that only you and your spouse can decide on. The 80/20 AA likely has a higher return but greater loss in a downturn than the 60/40 AA. The JTGIX fund in his 401k #1 has an AA of ~75/25 and that is very reasonable in my opinion. I would use that type of fund (we call them target retirement funds) in your other tax advantaged accounts.

In your 401k #2 at Schwab, I would use the Schwab Target 2030 Index fund, SWYEX, ER 0.08%. It’s about 72/28 stocks/bonds. Be sure to use the Schwab “Index” fund which is significantly lower cost than their 2030 non-index target retirement fund. https://www.schwab.com/public/schwab/in ... ol%3DSWYEX

With your MFJ income of 400k, you would not be able to deduct a traditional IRA and you would need to use the backdoor indirect method of contributing to a Roth IRA. You can read about the process in the BH Wiki.

You should realize the the stock and bond markets are always changing and as a long-term investor you need to ignore these short-term ups and downs. We believe that the long term trend in the market is up, and the short-term changes are a distraction that you should try to ignore. I know, it’s hard, but you are investing for your retirement that is maybe 20 years in the future. :)

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