New job - Help with 401k and AA

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Topic Author
renegade06
Posts: 239
Joined: Sat Jan 12, 2019 3:00 pm

New job - Help with 401k and AA

Post by renegade06 » Mon Jun 29, 2020 8:53 pm

Hello all - I am starting a new job and could use your thoughts on my 401k rollover and current Asset Allocation.

am a 44 yo male, 37% Federal, 5.25% state, My Current AA (across taxable and tax deferred) is 57% U.S. Stock, 23% international, 13% bonds [9% is in my TSP G fund, and about 4% is in my current 401k in VAnguard Total Bond Fund)], 3% cash, 2% REIT (in a Roth IRA). I hold all of my bond allocation in my TSP G fund and inside my current 401k in Vanguard Total Bond Fund.

My new 401k has great options in Fidelity which include the Fidelity S&P 500, Extended Market, and Fidelity U.S. bond index (FXNAX).

Questions:
1. Does my AA list above seem reasonable to you? I feel like I should be closer to 15% bonds and I’d like to be at 20% bonds by age 50.

2. Should I consider rolling my old 401k into the new 401k with Fidelity and put the majority into Fidelity U.S. Bond index which would increase my percentage of bonds to approx 14%? If I did this, I would then put my new 401k contributions into Fidelity S&P (80%) and Fidelity Extended Market (20%) every paycheck.

3. Should I just roll my 401k into my TSP and put it all in the G fund? This would also increase my total bond AA to about 14%, but I wonder if having it all in the G fund is too conservative. I would put all new money in Fidelity S&P and Extended market as listed above.

Thanks!

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Duckie
Posts: 7374
Joined: Thu Mar 08, 2007 2:55 pm

Re: New job - Help with 401k and AA

Post by Duckie » Mon Jun 29, 2020 10:11 pm

renegade06 wrote:My new 401k has great options in Fidelity which include the Fidelity S&P 500, Extended Market, and Fidelity U.S. bond index (FXNAX).
Does the new 401k have a good international stock index fund?
Does my AA list above seem reasonable to you? I feel like I should be closer to 15% bonds and I’d like to be at 20% bonds by age 50.
You have 16% bonds/cash now. That is low for age 44. 20% is low for age 50.
Should I consider rolling my old 401k into the new 401k with Fidelity and put the majority into Fidelity U.S. Bond index which would increase my percentage of bonds to approx 14%?
Rolling an old employer plan to a new one (if decent) is usually a good idea.
Should I just roll my 401k into my TSP and put it all in the G fund? This would also increase my total bond AA to about 14%, but I wonder if having it all in the G fund is too conservative.
This would also work. If you pick this option you could split the bonds between G Fund and F Fund.

What are your account percentages?
  • Taxable -- %
    Current 401k -- %
    Former 401k -- %
    Thrift Savings Plan -- %
    Roth IRA -- %
    Total -- 100%

Topic Author
renegade06
Posts: 239
Joined: Sat Jan 12, 2019 3:00 pm

Re: New job - Help with 401k and AA

Post by renegade06 » Tue Jun 30, 2020 6:57 am

Thanks, Duckie - I am also concerned that my bond holdings are too low. I will work the calculations to answer your question.

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ruralavalon
Posts: 18501
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: New job - Help with 401k and AA

Post by ruralavalon » Tue Jun 30, 2020 11:33 am

renegade06 wrote:
Mon Jun 29, 2020 8:53 pm
Hello all - I am starting a new job and could use your thoughts on my 401k rollover and current Asset Allocation.

am a 44 yo male, 37% Federal, 5.25% state, My Current AA (across taxable and tax deferred) is 57% U.S. Stock, 23% international, 13% bonds [9% is in my TSP G fund, and about 4% is in my current 401k in VAnguard Total Bond Fund)], 3% cash, 2% REIT (in a Roth IRA). I hold all of my bond allocation in my TSP G fund and inside my current 401k in Vanguard Total Bond Fund.

My new 401k has great options in Fidelity which include the Fidelity S&P 500, Extended Market, and Fidelity U.S. bond index (FXNAX).

Questions:
1. Does my AA list above seem reasonable to you? I feel like I should be closer to 15% bonds and I’d like to be at 20% bonds by age 50.
In my opinion at age 44 around 30% in bonds or other fixed income (like the G Fund) would be more reasonable.


renegade06 wrote:
Mon Jun 29, 2020 8:53 pm
2. Should I consider rolling my old 401k into the new 401k with Fidelity and put the majority into Fidelity U.S. Bond index which would increase my percentage of bonds to approx 14%? If I did this, I would then put my new 401k contributions into Fidelity S&P (80%) and Fidelity Extended Market (20%) every paycheck.

3. Should I just roll my 401k into my TSP and put it all in the G fund? This would also increase my total bond AA to about 14%, but I wonder if having it all in the G fund is too conservative. I would put all new money in Fidelity S&P and Extended market as listed above.

Thanks!
A rollover is a good idea if the new 401k or the TSP offers good low expense funds as compared to the old 401k plan.

Either would be reasonable in my opinion for a rollover of your old 401k account.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

Topic Author
renegade06
Posts: 239
Joined: Sat Jan 12, 2019 3:00 pm

Re: New job - Help with 401k and AA

Post by renegade06 » Tue Jun 30, 2020 7:01 pm

Thanks, Rural! Greatly appreciate your thoughts and feedback.
ruralavalon wrote:
Tue Jun 30, 2020 11:33 am
renegade06 wrote:
Mon Jun 29, 2020 8:53 pm
Hello all - I am starting a new job and could use your thoughts on my 401k rollover and current Asset Allocation.

am a 44 yo male, 37% Federal, 5.25% state, My Current AA (across taxable and tax deferred) is 57% U.S. Stock, 23% international, 13% bonds [9% is in my TSP G fund, and about 4% is in my current 401k in VAnguard Total Bond Fund)], 3% cash, 2% REIT (in a Roth IRA). I hold all of my bond allocation in my TSP G fund and inside my current 401k in Vanguard Total Bond Fund.

My new 401k has great options in Fidelity which include the Fidelity S&P 500, Extended Market, and Fidelity U.S. bond index (FXNAX).

Questions:
1. Does my AA list above seem reasonable to you? I feel like I should be closer to 15% bonds and I’d like to be at 20% bonds by age 50.
In my opinion at age 44 around 30% in bonds or other fixed income (like the G Fund) would be more reasonable.



renegade06 wrote:
Mon Jun 29, 2020 8:53 pm
2. Should I consider rolling my old 401k into the new 401k with Fidelity and put the majority into Fidelity U.S. Bond index which would increase my percentage of bonds to approx 14%? If I did this, I would then put my new 401k contributions into Fidelity S&P (80%) and Fidelity Extended Market (20%) every paycheck.

3. Should I just roll my 401k into my TSP and put it all in the G fund? This would also increase my total bond AA to about 14%, but I wonder if having it all in the G fund is too conservative. I would put all new money in Fidelity S&P and Extended market as listed above.

Thanks!
A rollover is a good idea if the new 401k or the TSP offers good low expense funds as compared to the old 401k plan.

Either would be reasonable in my opinion for a rollover of your old 401k account.

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