5 fund to 3

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Topic Author
Fishing2retire
Posts: 21
Joined: Mon Jun 10, 2019 2:02 pm

5 fund to 3

Post by Fishing2retire » Tue Jul 09, 2019 4:30 pm

Seeking advice. Wanting to go from 5 to 3 fund, or TDF.
Currently have:
VTSAX
VGTSX
VBTLX
VSMAX
VIMAX

I tilted with the small and midCap but want to simplify my portfolio and was wanting to loose VIMAX and VSMAX.
What’s the best way to go about?

Thanks in advance!

snailderby
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Joined: Thu Jul 26, 2018 11:30 am

Re: 5 fund to 3

Post by snailderby » Tue Jul 09, 2019 4:32 pm

What sort of account(s) do you currently hold these funds in? A 401(k)? An IRA? A taxable account? Multiple accounts?

Pacific
Posts: 1290
Joined: Tue Mar 06, 2007 8:19 pm
Location: Lost in the middle of the Pacific

Re: 5 fund to 3

Post by Pacific » Tue Jul 09, 2019 5:01 pm

Fishing2retire wrote:
Tue Jul 09, 2019 4:30 pm
Seeking advice. Wanting to go from 5 to 3 fund, or TDF.
Currently have:
VTSAX
VGTSX
VBTLX
VSMAX
VIMAX

I tilted with the small and midCap but want to simplify my portfolio and was wanting to loose VIMAX and VSMAX.
What’s the best way to go about?

Thanks in advance!
What kind of capital gains are you looking at if you sell each of these?

retiredjg
Posts: 36802
Joined: Thu Jan 10, 2008 12:56 pm

Re: 5 fund to 3

Post by retiredjg » Tue Jul 09, 2019 5:03 pm

You might get more answers if you give the fund names so that people don't have to look them up. :happy

Topic Author
Fishing2retire
Posts: 21
Joined: Mon Jun 10, 2019 2:02 pm

Re: 5 fund to 3

Post by Fishing2retire » Tue Jul 09, 2019 5:08 pm

This is in a Roth IRA.

Topic Author
Fishing2retire
Posts: 21
Joined: Mon Jun 10, 2019 2:02 pm

Re: 5 fund to 3

Post by Fishing2retire » Tue Jul 09, 2019 5:10 pm

Vanguard
MidCap
Small cap
Total market
Total international
Total bond

DaftInvestor
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Joined: Wed Feb 19, 2014 10:11 am

Re: 5 fund to 3

Post by DaftInvestor » Tue Jul 09, 2019 6:10 pm

Since its all in a roth ira there are no tax consequences of changing funds - you can just sell all the small cap and midcap and with the proceeds buy the total market (or you can split up the sells/buys to buy the others in whatever amounts you want to get to your desired asset allocation).

retiredjg
Posts: 36802
Joined: Thu Jan 10, 2008 12:56 pm

Re: 5 fund to 3

Post by retiredjg » Tue Jul 09, 2019 6:37 pm

If your Roth IRA is all you have, then looking at it alone is fine. If you have accounts other than Roth IRA, then looking at only the Roth IRA pretty much means nothing.

Consider if you want to show us the big picture. See the link at the bottom of this message.

Topic Author
Fishing2retire
Posts: 21
Joined: Mon Jun 10, 2019 2:02 pm

Re: 5 fund to 3

Post by Fishing2retire » Tue Jul 09, 2019 9:17 pm

Thanks for the advice everyone. I will receive a pension when I decide to retire at 55 years old. Which will replace about 60/65% of my income. My Roth at that time should hopefully fill in the rest of the 35/40%.

nix4me
Posts: 254
Joined: Sat Oct 13, 2018 9:32 am

Re: 5 fund to 3

Post by nix4me » Tue Jul 09, 2019 9:46 pm

If you have a big pension - then you should consider a 1 fund Roth - VTSAX, 100%

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Watty
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Re: 5 fund to 3

Post by Watty » Tue Jul 09, 2019 10:23 pm

nix4me wrote:
Tue Jul 09, 2019 9:46 pm
If you have a big pension - then you should consider a 1 fund Roth - VTSAX, 100%
A target date fund would be a better choice.

nix4me
Posts: 254
Joined: Sat Oct 13, 2018 9:32 am

Re: 5 fund to 3

Post by nix4me » Wed Jul 10, 2019 9:10 pm

Watty wrote:
Tue Jul 09, 2019 10:23 pm
nix4me wrote:
Tue Jul 09, 2019 9:46 pm
If you have a big pension - then you should consider a 1 fund Roth - VTSAX, 100%
A target date fund would be a better choice.
Sure - if you want poor performance.

retiredjg
Posts: 36802
Joined: Thu Jan 10, 2008 12:56 pm

Re: 5 fund to 3

Post by retiredjg » Thu Jul 11, 2019 6:59 am

Fishing2retire wrote:
Tue Jul 09, 2019 9:17 pm
Thanks for the advice everyone. I will receive a pension when I decide to retire at 55 years old. Which will replace about 60/65% of my income. My Roth at that time should hopefully fill in the rest of the 35/40%.
The amount you can contribute to Roth IRA each year may not be enough to fill in all the gaps for what might be a 40 year retirement. if you are able to save more, it would be a good idea.

Topic Author
Fishing2retire
Posts: 21
Joined: Mon Jun 10, 2019 2:02 pm

Re: 5 fund to 3

Post by Fishing2retire » Thu Jul 11, 2019 9:45 am

I also plan on buying years of service from my pension. Which is 13.75% of my salary. Allows me to retire sooner and bumps up my pay without any market risk.

Dottie57
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Re: 5 fund to 3

Post by Dottie57 » Thu Jul 11, 2019 11:00 am

Fishing2retire wrote:
Tue Jul 09, 2019 9:17 pm
Thanks for the advice everyone. I will receive a pension when I decide to retire at 55 years old. Which will replace about 60/65% of my income. My Roth at that time should hopefully fill in the rest of the 35/40%.
How until you retire? Will you receive SS n retirement? One thing I regret is not trying harder to have money in Taxable. It is very nice to have multiple sources of income in retirement.

Topic Author
Fishing2retire
Posts: 21
Joined: Mon Jun 10, 2019 2:02 pm

Re: 5 fund to 3

Post by Fishing2retire » Thu Jul 11, 2019 11:44 am

I have 15 years till I can retire at 55.

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