Help please. Being forced to retire early..

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Topic Author
Poisns1
Posts: 95
Joined: Thu Apr 13, 2017 2:19 pm

Re: Help please. Being forced to retire early..

Post by Poisns1 »

Thanks Wetgear.

I was concentrating on the majority of my assets but you're right. I want to get out of her "high ER" funds. Her IRA balance is only $165K.

I was thinking of selecting a Total Index 1 fund approach for her IRA to simplify things which would only require me to rebalance the MY 401k and LumpSum retirement IRA.

Her IRA current positions (Total $165K)
FDVLX 39.91%
FEQTX 29.80%
JATTX 30.29%

Advice/suggestions on selection of the 1 fund for her account (I don't mind a high AA toward stocks in this account because it would bring me to slightly more than the 60/40 AA in my other 2 accounts and I'm rather leaning toward 65/35 AA overall through all 3 accounts)?

4) If this is the last year you are working it's the last time you can contribute to a Roth IRA because you or your spouse need earned income to contribute to them. That being said it would probably be a good idea to make contributions for both of you this year.

Neither of us currently have ROTH IRAs. Does it make sense to open 2 individual ROTH IRAs before EOY for this or can I just make the max contributions (14K jointly) to our existing IRAs?


[/quote]

Looking pretty good but what are you going to do with Her IRA?

4) If this is the last year you are working it's the last time you can contribute to a Roth IRA because you or your spouse need earned income to contribute to them. That being said it would probably be a good idea to make contributions for both of you this year.
[/quote]
Carl53
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Re: Help please. Being forced to retire early..

Post by Carl53 »

Poisns1 wrote: Mon Aug 16, 2021 1:47 pm
3) Not following you on the $4k side gig. Is that per month or per year and how does that fit into my yearly expense equation?
I'm suggesting that if you as a MFJ couple could generate 4k taxable earned income per year delivering ads or whatever, that theoretically you could each get a $1000 tax credit. One could earn it all or however you did it doesn't matter unless it plays less than nice with the SSDI. In practice the tax credit will likely be somewhat less and it is not refundable but can take your taxes owed to zero. So if it would have otherwise reduced your taxes below zero, you can convert more to bring it back up to zero or whatever level you want it to be. Let's say you were at the start of the 10% bracket and added 4k in income and placed it all in his/her Roths. One would expect to pay $400 in income taxes. If you get perhaps $1500 in tax credits (but can only use as it stands $400 of them), converting more to Roths could be done so as to not waste the other $1100 in tax credits.
Topic Author
Poisns1
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Re: Help please. Being forced to retire early..

Post by Poisns1 »

I was thinking of selecting a Total Index 1 fund approach or target date fund for my wife's Fidelity IRA to simplify things which would only require me to rebalance MY 401k and my future LumpSum retirement IRA?

Her IRA current positions (Total $165K) which have very high E.R. so looking to swap out:
FDVLX 39.91%
FEQTX 29.80%
JATTX 30.29%

Was looking at Fidelity FXIFX 2030 which has an ER or .12 and is 38.8% US stock, 25.19% International stock and 34.3 Bond? Alternatively I could just pick the same 3 funds as the LumpSum rollover IRA (FSKAX, FTIHX and FXNAX) but just trying to lessen the accounts needing to be touched yearly?

Lastly my Fidelity account advisor told me that Fidelity came out with 0% fee versions of FSKAX and FTIHX; FZROX (0%) and FZILX (0%). Should I switch my picks to these for my future LumpSum retirement IRA?
wetgear
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Re: Help please. Being forced to retire early..

Post by wetgear »

Poisns1 wrote: Sat Aug 28, 2021 4:03 pm I was thinking of selecting a Total Index 1 fund approach or target date fund for my wife's Fidelity IRA to simplify things which would only require me to rebalance MY 401k and my future LumpSum retirement IRA?

Her IRA current positions (Total $165K) which have very high E.R. so looking to swap out:
FDVLX 39.91%
FEQTX 29.80%
JATTX 30.29%

Was looking at Fidelity FXIFX 2030 which has an ER or .12 and is 38.8% US stock, 25.19% International stock and 34.3 Bond? Alternatively I could just pick the same 3 funds as the LumpSum rollover IRA (FSKAX, FTIHX and FXNAX) but just trying to lessen the accounts needing to be touched yearly?

Lastly my Fidelity account advisor told me that Fidelity came out with 0% fee versions of FSKAX and FTIHX; FZROX (0%) and FZILX (0%). Should I switch my picks to these for my future LumpSum retirement IRA?
For convenience of calculating your AA in the future I'd probably not use FXIFX, it will also drift over time as the date approaches further complicating things. FSKAX, FTIHX, FXNAX are all great options as well as the free versions. The minor decrease in fees for the free versions comes with the downside of them not being able to be transferred to other brokerages if you ever needed/wanted to do that. Most folks here myself included don't think there is any significant difference between the options so don't agonize over that decision as it probably won't matter. Also note you don't have to hold all 3 funds in your wife's IRA. Sometimes it's easier just to hold 1 fund in an account for simplicity especially if it's a relatively small part of the portfolio. The total portfolio AA is the important part, you don't need or likely want the same AA in every individual account.
Topic Author
Poisns1
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Re: Help please. Being forced to retire early..

Post by Poisns1 »

wetgear wrote: Sun Aug 29, 2021 10:49 am
Poisns1 wrote: Sat Aug 28, 2021 4:03 pm I was thinking of selecting a Total Index 1 fund approach or target date fund for my wife's Fidelity IRA to simplify things which would only require me to rebalance MY 401k and my future LumpSum retirement IRA?

Her IRA current positions (Total $165K) which have very high E.R. so looking to swap out:
FDVLX 39.91%
FEQTX 29.80%
JATTX 30.29%

Was looking at Fidelity FXIFX 2030 which has an ER or .12 and is 38.8% US stock, 25.19% International stock and 34.3 Bond? Alternatively I could just pick the same 3 funds as the LumpSum rollover IRA (FSKAX, FTIHX and FXNAX) but just trying to lessen the accounts needing to be touched yearly?

Lastly my Fidelity account advisor told me that Fidelity came out with 0% fee versions of FSKAX and FTIHX; FZROX (0%) and FZILX (0%). Should I switch my picks to these for my future LumpSum retirement IRA?
Sometimes it's easier just to hold 1 fund in an account for simplicity especially if it's a relatively small part of the portfolio.
What would you suggest for the 1 fund in her IRA?
wetgear
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Re: Help please. Being forced to retire early..

Post by wetgear »

Poisns1 wrote: Sun Aug 29, 2021 9:59 pm
wetgear wrote: Sun Aug 29, 2021 10:49 am
Poisns1 wrote: Sat Aug 28, 2021 4:03 pm I was thinking of selecting a Total Index 1 fund approach or target date fund for my wife's Fidelity IRA to simplify things which would only require me to rebalance MY 401k and my future LumpSum retirement IRA?

Her IRA current positions (Total $165K) which have very high E.R. so looking to swap out:
FDVLX 39.91%
FEQTX 29.80%
JATTX 30.29%

Was looking at Fidelity FXIFX 2030 which has an ER or .12 and is 38.8% US stock, 25.19% International stock and 34.3 Bond? Alternatively I could just pick the same 3 funds as the LumpSum rollover IRA (FSKAX, FTIHX and FXNAX) but just trying to lessen the accounts needing to be touched yearly?

Lastly my Fidelity account advisor told me that Fidelity came out with 0% fee versions of FSKAX and FTIHX; FZROX (0%) and FZILX (0%). Should I switch my picks to these for my future LumpSum retirement IRA?
Sometimes it's easier just to hold 1 fund in an account for simplicity especially if it's a relatively small part of the portfolio.
What would you suggest for the 1 fund in her IRA?
The one that moves you closer to your total portfolio AA and that all depends on how the rest of the portfolio is built.
deikel
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Re: Help please. Being forced to retire early..

Post by deikel »

yohac wrote: Wed Mar 10, 2021 4:47 pm
Poisns1 wrote: Wed Mar 10, 2021 4:30 pm I've already had 2 interviews (Advance Capital and Edward Jones)
Don't ever talk to them again.

You can manage this yourself easily. Assuming the annuity is not inflation adjusted, I'd probably roll the lump sum into an IRA, perhaps a sensible balanced fund like Vanguard Life Strategy Moderate, and live off the cash as needed till 59.5.
Funny, that's exactly what they advised - free of charge - less the manage yourself
Everything you read in this post is my personal opinion. If you disagree with this disclaimer, please un-read the text immediately and destroy any copy or remembrance of it.
Topic Author
Poisns1
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Re: Help please. Being forced to retire early..

Post by Poisns1 »

After months of research and deliberation, I'm leaning towards exiting the company and taking the lump sum to invest on my own.

I am trying to figure out the easiest way to adjust my current 3 accounts (my company 401k, wife's IRA, and my company HSA)

Fidelity says my total portfolio ($1,397,552) AA right now is:

Domestic Stock 66%
Foreign Stock 22%
Bonds 10%
Short Term 1%
Unknown 0%
Other 1%

My desire is to obtain close to 60/40 AA with the 3 fund portfolio (Total US Stock, Intl Stock Index, ATT Total Ret Bond Fund)

Individual Breakdown of my current 3 account folio (my company 401k, wife's IRA, and my company HSA):

Total Account Value
*********************************

His 401k (88% of total portfolio)
AT&T RETIREMENT SAVINGS PLAN $1,226,230.14 Current mix of AT&T funds
(Asset Allocation 2030 fund 15%, Total Return Bond 7%, Total US Stock (large cap) 12%, AT&T US Stock Fund (large cap) 10%, International Stock Index 20%, Large Cap US Stock Index 16%, SM & MD US Stock 20%). I need to consolidate to % of Total US Stock Fund (.01 ER), INTL Stock Index Fund (.02 ER) and ATT TOTAL Return Bond Fund (.14 ER)

His HSA (~0% of total portfolio)
HEALTH SAVINGS ACCOUNT $3,026.05 (all in FDRXX). What funds to invest for HSA?

Her IRA (12% of total portfolio)
ROLLOVER IRA $168,295.50 (need to sell high E.R. funds of FDVLX, FEQTX, JATTX)

************************************

I was thinking of selling all holdings in DW account and replacing with all bond FXNAX to get my increase my overall AA bond %. Then I would need to sell most of the individual ATT company funds and figure out the correct % with the 3 401k fund choices of Total US Stock, Intl Stock Index, Total Bond Fund.

Once my 3 accounts (above) are at my desired AA of 60/40, I can retire and roll my lump sum into the 4th IRA account and buy Fidelity Funds (FSKAX, FTIHX and FXNAX) at the 60/40 AA.

Advice and opinions please for the easiest way to achieve my 60/40 AA for these first 3 accounts (my company 401k, wife's IRA, and my company HSA) and how the HSA should fit into my overall AA?
Last edited by Poisns1 on Thu Oct 21, 2021 1:48 pm, edited 1 time in total.
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AnnetteLouisan
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Re: Help please. Being forced to retire early..

Post by AnnetteLouisan »

the lump sum would subject you to a huge tax bite, like 35 percent fedl plus state and local- isn’t that so??
pasadena
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Re: Help please. Being forced to retire early..

Post by pasadena »

AnnetteLouisan wrote: Wed Oct 20, 2021 11:10 pm the lump sum would subject you to a huge tax bite, like 35 percent fedl plus state and local- isn’t that so??
It's a pension, so it can be rolled into an IRA (or the 401k).

@OP, is there any reason why you wouldn't roll your 401(k) into an IRA too? Are you planning on taking advantage of the rule of 55?
wetgear
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Re: Help please. Being forced to retire early..

Post by wetgear »

Poisns1 wrote: Wed Oct 20, 2021 3:56 pm After months of research and deliberation, I'm leaning towards exiting the company and taking the lump sum to invest on my own.

I am trying to figure out the easiest way to adjust my current 3 accounts (my company 401k, wife's IRA, and my company HSA)

Fidelity says my total portfolio ($1,397,552) AA right now is:

Domestic Stock 66%
Foreign Stock 22%
Bonds 10%
Short Term 1%
Unknown 0%
Other 1%

My desire is to obtain close to 60/40 AA with the 3 fund portfolio (Total US Stock, Intl Stock Index, ATT Total Ret Bond Fund)

Individual Breakdown of my current 3 account folio (my company 401k, wife's IRA, and my company HSA):

Total Account Value
AT&T RETIREMENT SAVINGS PLAN $1,226,230.14 Current mix of AT&T funds
(Asset Allocation 2030 fund 15%, Total Return Bond 7%, Total US Stock (large cap) 12%, AT&T US Stock Fund (large cap) 10%, International Stock Index 20%, Large Cap US Stock Index 16%, SM & MD US Stock 20%). I need to consolidate to % of Total US Stock Fund (.01 ER), INTL Stock Index Fund (.02 ER) and ATT TOTAL Return Bond Fund (.14 ER)

HEALTH SAVINGS ACCOUNT $3,026.05 (all in FDRXX). What funds to invest for HSA?

ROLLOVER IRA $168,295.50 (need to sell high E.R. funds of FDVLX, FEQTX, JATTX)

I was thinking of selling all holdings in DW account and replacing with all bond FXNAX to get my increase my overall AA bond %. Then I would need to sell most of the individual ATT company funds and figure out the correct % with the 3 401k fund choices of Total US Stock, Intl Stock Index, Total Bond Fund.

Once my 3 accounts (above) are at my desired AA of 60/40, I can retire and roll my lump sum into the 4th IRA account and buy Fidelity Funds (FSKAX, FTIHX and FXNAX) at the 60/40 AA.

Advice and opinions please for the easiest way to achieve my 60/40 AA for these first 3 accounts (my company 401k, wife's IRA, and my company HSA) and how the HSA should fit into my overall AA?
What percentage of your stocks do you want to be international?

Total portfolio ~ 1,394,000

Otherwise:
His 401k (88% of total portfolio)
60% TSM & TISM at your desired ratio from the question above.
28% ATT Total return bond

His HSA (~0% of total portfolio)
~0% FXNAX

Her IRA (12% of total portfolio)
12% FXNAX

All you need to do is figure out the % international and you are done. 33% (of stocks) International is in the range of what many here would consider reasonable and it keeps the math easy. 40% (total portfolio) TSM and 20% (total portfolio) TISM = 60% of total portfolio. 28% ATT Total Return bond + 12% FXNAX = 40% bonds in total portfolio. 60/40 with International representing 33% of stocks and 20% of total portfolio.

If you edit your original post (pencil icon on that post) and put it in this format you will likely get advice from more people as its easier to see all the necessary details: viewtopic.php?t=6212
Topic Author
Poisns1
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Re: Help please. Being forced to retire early..

Post by Poisns1 »

pasadena wrote: Wed Oct 20, 2021 11:26 pm
AnnetteLouisan wrote: Wed Oct 20, 2021 11:10 pm the lump sum would subject you to a huge tax bite, like 35 percent fedl plus state and local- isn’t that so??
It's a pension, so it can be rolled into an IRA (or the 401k).

@OP, is there any reason why you wouldn't roll your 401(k) into an IRA too? Are you planning on taking advantage of the rule of 55?
I'm leaving the 401k alone for the time being because I can withdraw from that balance penalty free until 59.5
pasadena
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Re: Help please. Being forced to retire early..

Post by pasadena »

Poisns1 wrote: Thu Oct 21, 2021 1:38 pm
pasadena wrote: Wed Oct 20, 2021 11:26 pm
AnnetteLouisan wrote: Wed Oct 20, 2021 11:10 pm the lump sum would subject you to a huge tax bite, like 35 percent fedl plus state and local- isn’t that so??
It's a pension, so it can be rolled into an IRA (or the 401k).

@OP, is there any reason why you wouldn't roll your 401(k) into an IRA too? Are you planning on taking advantage of the rule of 55?
I'm leaving the 401k alone for the time being because I can withdraw from that balance penalty free until 59.5
That's what I thought.
wetgear wrote: Thu Oct 21, 2021 12:13 am What percentage of your stocks do you want to be international?

Total portfolio ~ 1,394,000

Otherwise:
His 401k (88% of total portfolio)
60% TSM & TISM at your desired ratio from the question above.
28% ATT Total return bond

His HSA (~0% of total portfolio)
~0% FXNAX

Her IRA (12% of total portfolio)
12% FXNAX

All you need to do is figure out the % international and you are done. 33% (of stocks) International is in the range of what many here would consider reasonable and it keeps the math easy. 40% (total portfolio) TSM and 20% (total portfolio) TISM = 60% of total portfolio. 28% ATT Total Return bond + 12% FXNAX = 40% bonds in total portfolio. 60/40 with International representing 33% of stocks and 20% of total portfolio.

If you edit your original post (pencil icon on that post) and put it in this format you will likely get advice from more people as its easier to see all the necessary details: viewtopic.php?t=6212
Agreed, except I would invest the HSA more aggressively, and open two Roth accounts for contributions this year, and future rollovers.

@OP, is there another bond fund in your 401(k)? How did the ATT one behave during the previous crisis (2000, 2008, 2020)?
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Bogle101
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Re: Help please. Being forced to retire early..

Post by Bogle101 »

As most people have said, try to stay away from financial advisors. Unless you are a high net worth individual, advisors are not needed.

Try to educate yourself or meet a couple of times with a flat fee planner if you’re uncomfortable investing such a large amount of money.

I would take the lump sum and invest in low cost mutual funds.

The only thing you said that concerns me was the comment about working your whole life that 400k can you have it earmarked for toys like boats, etc.

I know you worked hard and don’t want to just keep saving and investing and never having fun, but purchases like boats are a real money pit. Maybe just do one toy purchase and see if you even have the time for more toys. And you can’t be scared to invest, that’s how the rich stay rich.
40% Extended Market | 40% S&P 500 | 10% REIT | 5% State Muni Bond | 5% Cash
Topic Author
Poisns1
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Re: Help please. Being forced to retire early..

Post by Poisns1 »

[/quote]

What percentage of your stocks do you want to be international?

Total portfolio ~ 1,394,000

Otherwise:
His 401k (88% of total portfolio)
60% TSM & TISM at your desired ratio from the question above.
28% ATT Total return bond

His HSA (~0% of total portfolio)
~0% FXNAX

Her IRA (12% of total portfolio)
12% FXNAX

All you need to do is figure out the % international and you are done. 33% (of stocks) International is in the range of what many here would consider reasonable and it keeps the math easy. 40% (total portfolio) TSM and 20% (total portfolio) TISM = 60% of total portfolio. 28% ATT Total Return bond + 12% FXNAX = 40% bonds in total portfolio. 60/40 with International representing 33% of stocks and 20% of total portfolio.

If you edit your original post (pencil icon on that post) and put it in this format you will likely get advice from more people as its easier to see all the necessary details: viewtopic.php?t=6212
[/quote]

Thanks Wetgear! I updated my post per your suggestion.
Topic Author
Poisns1
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Re: Help please. Being forced to retire early..

Post by Poisns1 »

[/quote]

Agreed, except I would invest the HSA more aggressively, and open two Roth accounts for contributions this year, and future rollovers.

@OP, is there another bond fund in your 401(k)? How did the ATT one behave during the previous crisis (2000, 2008, 2020)?
[/quote]

I agree and thought I should also invest aggressively with the low balance and fact that I get 3 types of tax advantages in that account. I was thinking a total market (both Total US Stock and Total International) or just all in FSKAX? What do you suggest for the HSA?

I only have one bond fund in my 401K and this is what the tool gave me for performance:
1 YR 3 YR 5 YR 10 YR/LOF
0.25% 6.23% 3.85% 4.21%
Topic Author
Poisns1
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Re: Help please. Being forced to retire early..

Post by Poisns1 »

Can I get some suggestions on a single fund to aggressively invest in my HSA?

I was thinking a total market (both Total US Stock and Total International) or just all in FSKAX? It's not even 1 percent of my overall portfolio and I'm not considering touching any of the funds for at least another 10+ years..
Topic Author
Poisns1
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Re: Help please. Being forced to retire early..

Post by Poisns1 »

Can I get some suggestions on a single fund to aggressively invest in my HSA?

I was thinking a total market (both Total US Stock and Total International) or just all in FSKAX? It's not even 1 percent of my overall portfolio and I'm not considering touching any of the funds for at least another 10+ years..
tj
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Re: Help please. Being forced to retire early..

Post by tj »

I just tossed it all in FZROX.
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LadyGeek
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Re: Help please. Being forced to retire early..

Post by LadyGeek »

tj wrote: Tue Oct 26, 2021 10:12 pm I just tossed it all in FZROX.
Just be aware that the Fidelity ZERO funds can't be moved to another broker. They'll have to be liquidated which means capital gains taxes when held in a taxable account.

See the wiki: Fidelity (US stock, note 2)
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wetgear
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Re: Help please. Being forced to retire early..

Post by wetgear »

Poisns1 wrote: Tue Oct 26, 2021 9:51 pm Can I get some suggestions on a single fund to aggressively invest in my HSA?

I was thinking a total market (both Total US Stock and Total International) or just all in FSKAX? It's not even 1 percent of my overall portfolio and I'm not considering touching any of the funds for at least another 10+ years..
FSKAX is fine then. It's a small part of the portfolio so it won't really matter if its that or FXNAX but there is logic to holding a more aggressive fund there.

Note: Folks will get alerted that you quoted them if you include the text at the top that starts with [ quote= persons username.........] and the post ends in [/ quote]

Right now you are just using quote to start and finish and it comes through as text only and no alerts.
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Re: Help please. Being forced to retire early..

Post by LadyGeek »

wetgear wrote: Wed Oct 27, 2021 7:26 am Note: Folks will get alerted that you quoted them if you include the text at the top that starts with [ quote= persons username.........] and the post ends in [/ quote]

Right now you are just using quote to start and finish and it comes through as text only and no alerts.
wetgear is suggesting that members quote posts using the Quote " button at the top-right corner of the post. Doing so will trigger notifications to members as defined in the User Control Panel --> Board preferences --> Edit notification options (generic link - goes to your profile)

Quoting someone's post will trigger the notification "Someone quotes you in a post " to be sent as either a Notification (seen at the top of the page) or an email.

(wetgear just got notified that I quoted him in a post.)
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Re: Help please. Being forced to retire early..

Post by tj »

LadyGeek wrote: Wed Oct 27, 2021 6:36 am
tj wrote: Tue Oct 26, 2021 10:12 pm I just tossed it all in FZROX.
Just be aware that the Fidelity ZERO funds can't be moved to another broker. They'll have to be liquidated which means capital gains taxes when held in a taxable account.

See the wiki: Fidelity (US stock, note 2)
Why would I move my HSA from Fidelity? They have the best option by a mile.
wetgear
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Re: Help please. Being forced to retire early..

Post by wetgear »

LadyGeek wrote: Wed Oct 27, 2021 7:33 am
wetgear wrote: Wed Oct 27, 2021 7:26 am Note: Folks will get alerted that you quoted them if you include the text at the top that starts with [ quote= persons username.........] and the post ends in [/ quote]

Right now you are just using quote to start and finish and it comes through as text only and no alerts.
wetgear is suggesting that members quote posts using the Quote " button at the top-right corner of the post. Doing so will trigger notifications to members as defined in the User Control Panel --> Board preferences --> Edit notification options (generic link - goes to your profile)

Quoting someone's post will trigger the notification "Someone quotes you in a post " to be sent as either a Notification (seen at the top of the page) or an email.

(wetgear just got notified that I quoted him in a post.)
Indeed I did get notified. I think OP is using the quote button but then deleting important syntax and people aren’t getting notified/it doesn’t have quote format.
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Re: Help please. Being forced to retire early..

Post by LadyGeek »

tj wrote: Wed Oct 27, 2021 8:53 am Why would I move my HSA from Fidelity? They have the best option by a mile.
I fully agree. I'm just pointing out to others who may want to use a ZERO fund for a different purpose.
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Poisns1
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Re: Help please. Being forced to retire early..

Post by Poisns1 »

wetgear wrote: Wed Oct 27, 2021 7:26 am
Poisns1 wrote: Tue Oct 26, 2021 9:51 pm Can I get some suggestions on a single fund to aggressively invest in my HSA?

I was thinking a total market (both Total US Stock and Total International) or just all in FSKAX? It's not even 1 percent of my overall portfolio and I'm not considering touching any of the funds for at least another 10+ years..
FSKAX is fine then. It's a small part of the portfolio so it won't really matter if its that or FXNAX but there is logic to holding a more aggressive fund there.

Note: Folks will get alerted that you quoted them if you include the text at the top that starts with [ quote= persons username.........] and the post ends in [/ quote]

Right now you are just using quote to start and finish and it comes through as text only and no alerts.
Thanks for the replys/advice TJ, Ladygeek and Wetgear! I will just dump that small HSA amount in FSKAX. And yes I was deleting some of the reply to keep the message shorter and on point. Now I realize why no one was responding. Thank You for pointing that out as I will now just use the quote not delete any of the message.
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Re: Help please. Being forced to retire early..

Post by FoolMeOnce »

Poisns1 wrote: Wed Mar 10, 2021 8:08 pm
Outer Marker wrote: Wed Mar 10, 2021 7:44 pm
nix4me wrote: Wed Mar 10, 2021 7:39 pm If it were me, i'd keep the 400K cash, take the lump sum and put everything except the 400 cash in VTI. Then i'd retire. You only need about 2-3% to cover expenses. Sell stock when stocks are high and use cash when stocks are low for your yearly withdrawals. Id put it in Fidelity or Schwab or Vanguard.
That is really dangerous and irresponsible advice. Don't do it. You are financially well situated have no need to take on extreme risk in the stock market.
This appealed to me since it sounded so easy. I understand this is taking way more risk than I'd be comfortable with being in only 1 fund and weighted heavily toward stocks.
It can be that easy. Just pick one find that fits your risk. Can be a target date fund, or perhaps look into Vanguard LifeStrategy funds. They have ones at 20%, 40%, 60%, and 80% stocks (the remainder in bonds).

https://investor.vanguard.com/mutual-fu ... trategy/#/
wetgear
Posts: 859
Joined: Thu Apr 06, 2017 10:14 am

Re: Help please. Being forced to retire early..

Post by wetgear »

:beer
Poisns1 wrote: Wed Oct 27, 2021 12:56 pm
wetgear wrote: Wed Oct 27, 2021 7:26 am
Poisns1 wrote: Tue Oct 26, 2021 9:51 pm Can I get some suggestions on a single fund to aggressively invest in my HSA?

I was thinking a total market (both Total US Stock and Total International) or just all in FSKAX? It's not even 1 percent of my overall portfolio and I'm not considering touching any of the funds for at least another 10+ years..
FSKAX is fine then. It's a small part of the portfolio so it won't really matter if its that or FXNAX but there is logic to holding a more aggressive fund there.

Note: Folks will get alerted that you quoted them if you include the text at the top that starts with [ quote= persons username.........] and the post ends in [/ quote]

Right now you are just using quote to start and finish and it comes through as text only and no alerts.
Thanks for the replys/advice TJ, Ladygeek and Wetgear! I will just dump that small HSA amount in FSKAX. And yes I was deleting some of the reply to keep the message shorter and on point. Now I realize why no one was responding. Thank You for pointing that out as I will now just use the quote not delete any of the message.

You got it this time! You can delete stuff just not the first and last bits. You can also use the preview button before submitting to see if it’s going to work correctly. Properly quotes stuff gets a different background color.
Topic Author
Poisns1
Posts: 95
Joined: Thu Apr 13, 2017 2:19 pm

Re: Help please. Being forced to retire early..

Post by Poisns1 »

So I'm planning on retiring on 12/17/21 and leaning towards rolling my lump sum into a new IRA at Fidelity.

That said, I had an inheritance from my DF 401A who recently passed away and not sure what my tax and/or withdrawal implications are?

Fund investments and current balances:

Name/Initial Purchase Date Asset Class Category % Invested Balance Cost Basis YTD Returns As Of View Chart
PRUDENTIAL GIA
06/11/2020
Bond Investments Stable Value 79.72% $7,348.47 $5,737.56 2.69% 11/24/2021 Chart icon[PRUDENTIAL GIA] chart
VANGUARD TARGET INC
06/11/2020
Blended Investments* N/A 20.28% $1,869.10 $1,468.98 4.83% 11/24/2021 Chart icon[VANGUARD TARGET INC] chart
Account Total 100% $9,217.57 3.12%

Other fund choices in the 401A:

Parnassus Core Equity Fund - Institutional Shares (PRILX)

Vanguard Total Stock Market Index Fund Institutional Plus Shares (VSMPX)

Vanguard Target Retirement 2065 Trust I

Vanguard Target Retirement 2060 Trust I

Vanguard Target Retirement 2050 Trust I

Vanguard Target Retirement 2055 Trust I

Vanguard Target Retirement 2045 Trust I

Vanguard Target Retirement 2040 Trust I

Vanguard Target Retirement 2035 Trust I

Vanguard Target Retirement 2030 Trust I

Vanguard Target Retirement 2025 Trust I

Harbor Diversified International All Cap Fund Retirement Class (HNIDX)

Vanguard Total International Stock Index Fund Institutional Shares (VTSNX)

Vanguard Target Retirement 2020 Trust I

PIMCO Inflation Response Multi-Asset Fund Institutional (PIRMX)

Vanguard Target Retirement 2015 Trust I

Vanguard Target Retirement Income Trust I

BlackRock Total Return Fund Class K Shares (MPHQX)

Vanguard Total Bond Market Index Fund Institutional Shares (VBTIX)

Prudential Guaranteed Interest Account
Expense Ratio
Morningstar
Asset Class
Morningstar Category
YTD # (Daily)
1 Yr
3 Yr
5 Yr
10 Yr
Life of Fund
Net †
Gross ‡
Overall
Expense Ratio
Morningstar
Asset Class
Morningstar Category
YTD # (Daily)
1 Yr
3 Yr
5 Yr
10 Yr
Life of Fund
Net †
Gross ‡
Overall
Stock Large Blend +25.88% +39.23% +22.90% +19.05% +16.43% +11.87% 0.62% 0.62%
1250
Stock Large Blend +25.05% +44.08% +21.69% +18.95% +16.06% +10.74% 0.02% 0.02%
1250
Blend Target-Date 2065+ +15.87% +34.10% +16.85% -- -- +13.83% 0.065% 0.065% --
Blend Target-Date 2060 +15.95% +34.13% +16.84% +14.21% -- +11.38% 0.065% 0.065% --
Blend Target-Date 2050 +15.95% +34.16% +16.83% +14.19% +11.94% +7.84% 0.065% 0.065% --
Blend Target-Date 2055 +15.94% +34.14% +16.82% +14.19% +11.90% +12.22% 0.065% 0.065% --
Blend Target-Date 2045 +15.70% +33.72% +16.69% +14.11% +11.89% +7.77% 0.065% 0.065% --
Blend Target-Date 2040 +14.06% +30.43% +15.76% +13.45% +11.56% +7.57% 0.065% 0.065% --
Blend Target-Date 2035 +12.48% +27.25% +14.84% +12.55% +11.00% +7.17% 0.065% 0.065% --
Blend Target-Date 2030 +10.88% +24.10% +13.88% +11.63% +10.28% +6.84% 0.065% 0.065% --
Blend Target-Date 2025 +9.36% +21.01% +12.93% +10.70% +9.56% +6.61% 0.065% 0.065% --
Stock Foreign Large Blend +9.55% +36.32% +12.69% +9.87% -- +7.76% 0.72% 0.85%
687
Stock Foreign Large Blend +8.03% +30.62% +12.50% +10.00% +7.16% +5.34% 0.08% 0.08%
687
Blend Target-Date 2020 +7.75% +17.37% +11.55% +9.50% +8.68% +6.30% 0.065% 0.065% --
Blend Allocation--15% to 30% Equity +12.36% +20.52% +10.07% +6.88% +3.66% +3.52% 0.73% 0.93%
180
Blend Target-Date 2015 +5.38% +12.38% +9.65% +7.85% +7.45% +5.71% 0.065% 0.065% --
Blend Target-Date Retirement +4.83% +11.08% +9.10% +6.84% +5.91% +5.60% 0.065% 0.065% --
Bond Intermediate Core-Plus Bond -1.36% +1.50% +6.68% +3.89% +4.38% +4.64% 0.37% 0.38%
570
Bond Intermediate Core Bond -2.25% -0.33% +5.67% +3.11% +2.96% +5.78% 0.035% 0.035%
379
Bond -- -- -- -- -- -- -- -- 0.1%

Knowing that I have my 401k and will likely have my an IRA rollover from my lump sum when I leave the company, I'm wondering what is the smartest thing to do with this account? It is invested heavily in bonds at approximately 20/80

Advice, suggestions please? Sell this and roll to my 401k and future IRA (lump sum rollover) or even to my checking account; tax implications? Leave as is or change investments to a more aggressive AA?
brcarls
Posts: 79
Joined: Tue Nov 22, 2016 8:04 am
Location: VA,NC,SC

Re: Help please. Being forced to retire early..

Post by brcarls »

island wrote: Thu Jul 15, 2021 6:07 pm Hi OP,
I just discovered this thread, hope you're still responding to it. I have family and friends that work for ATT.

Regarding the pension, my understanding is the pension multiplier of 1.6% will be reduced to 1.0% in 2022, BUT all years prior will still be calculated using the 1.6% so the pension you've already earned is not getting reduced. But obviously retiring before you want, eliminates the opportunity to add anything to it. That's self imposed.

Are you actually planning to take your pension at the end of the year when you're 55-56y/o or are you going to wait to start it at 65y/o?
Because if you take it early your pension is reduced 50%, 5% for each year below 65.
Have them run the calc based on if you took it now or postponed until 65.

Seems like if you really don't want to quit your job, just working a couple more years will give you enough income to self pay your health insurance and increase your pension.

But maybe I'm missing something else?

And I agree, no matter what you do steer clear of those self serving "advisors".
Good luck.

Qouting this because it seems very important if it applies to the op and I didn't see him address it.
User avatar
retireIn2020
Posts: 743
Joined: Sat Jan 04, 2020 5:13 pm

Re: Help please. Being forced to retire early..

Post by retireIn2020 »

Poisns1 wrote: Fri Nov 26, 2021 10:32 pm So I'm planning on retiring on 12/17/21 and leaning towards rolling my lump sum into a new IRA at Fidelity.
Not sure if it was mentioned yet but you can roll your lump sum directly into your 401k. I retired from T last year and did this. My reasons were;
1) Stable value fund (not available in any form outside of the 401k)
2) AT&T 401k has everything you need to create a low cost 3 fund portfolio
3) The rule of 55 (no penalty for withdrawals must be kept in the 401k)
4) You can set up (FREE) systematic monthly withdrawals. There's a fee for withdrawals from IRA.
5) 401k is protected from lawsuits (unlike IRA's)
6) It's very easy to rebalance using the Fidelity tools (1 click).
7) Easy to see everything in one statement (returns etc).

Congrats, looks like you've done well and are set for a well-deserved retirement!
https://www.merriam-webster.com/dictionary/abide
Topic Author
Poisns1
Posts: 95
Joined: Thu Apr 13, 2017 2:19 pm

Re: Help please. Being forced to retire early..

Post by Poisns1 »

brcarls wrote: Sat Nov 27, 2021 9:03 am
island wrote: Thu Jul 15, 2021 6:07 pm Hi OP,
I just discovered this thread, hope you're still responding to it. I have family and friends that work for ATT.

Regarding the pension, my understanding is the pension multiplier of 1.6% will be reduced to 1.0% in 2022, BUT all years prior will still be calculated using the 1.6% so the pension you've already earned is not getting reduced. But obviously retiring before you want, eliminates the opportunity to add anything to it. That's self imposed.

Are you actually planning to take your pension at the end of the year when you're 55-56y/o or are you going to wait to start it at 65y/o?
Because if you take it early your pension is reduced 50%, 5% for each year below 65.
Have them run the calc based on if you took it now or postponed until 65.

Seems like if you really don't want to quit your job, just working a couple more years will give you enough income to self pay your health insurance and increase your pension.

But maybe I'm missing something else?

And I agree, no matter what you do steer clear of those self serving "advisors".
Good luck.

Qouting this because it seems very important if it applies to the op and I didn't see him address it.
Sorry, thought I answered this already.

They are reducing the future growth of my pension starting in 2022, but my accrued value up to this point will not change. Also, I can elect to retire by the end of the year and commence my pension benefit starting immediately. Delaying my pension does nothing to increase the payout amount, unlike some other company pensions that actually may increase the benefit by choosing to take it at a later date.
single2019
Posts: 262
Joined: Thu May 27, 2021 12:13 pm

Re: Help please. Being forced to retire early..

Post by single2019 »

Poisns1 wrote: Sat Nov 27, 2021 11:48 am
brcarls wrote: Sat Nov 27, 2021 9:03 am
island wrote: Thu Jul 15, 2021 6:07 pm Hi OP,
I just discovered this thread, hope you're still responding to it. I have family and friends that work for ATT.

Regarding the pension, my understanding is the pension multiplier of 1.6% will be reduced to 1.0% in 2022, BUT all years prior will still be calculated using the 1.6% so the pension you've already earned is not getting reduced. But obviously retiring before you want, eliminates the opportunity to add anything to it. That's self imposed.

Are you actually planning to take your pension at the end of the year when you're 55-56y/o or are you going to wait to start it at 65y/o?
Because if you take it early your pension is reduced 50%, 5% for each year below 65.
Have them run the calc based on if you took it now or postponed until 65.

Seems like if you really don't want to quit your job, just working a couple more years will give you enough income to self pay your health insurance and increase your pension.

But maybe I'm missing something else?

And I agree, no matter what you do steer clear of those self serving "advisors".
Good luck.

Qouting this because it seems very important if it applies to the op and I didn't see him address it.
Sorry, thought I answered this already.

They are reducing the future growth of my pension starting in 2022, but my accrued value up to this point will not change. Also, I can elect to retire by the end of the year and commence my pension benefit starting immediately. Delaying my pension does nothing to increase the payout amount, unlike some other company pensions that actually may increase the benefit by choosing to take it at a later date.
Have you decided to retire or still deciding?
For a T employee the pension date is critical. IRS segment rates of November decide your lump sum. Sorry to say but your posts are all over the map. Right now worry about when to take the lump sum as opposed to how to invest it.

TALK to other T retirees. Send me a PM. For all you know, you may have worked with me.
Topic Author
Poisns1
Posts: 95
Joined: Thu Apr 13, 2017 2:19 pm

Re: Help please. Being forced to retire early..

Post by Poisns1 »

I'm still leaning toward retiring and I need to make a decision in the next 2 weeks.

I also leaning towards adding the lump sum to my existing company 401k (as one other company member suggested) for ease of balancing, investing and withdrawing funds.

So for those that have the 3 fund approach (US Stock, Intl Stock, Bond fund), how do you go about selling the funds, particularly which fund, how often and how much to setup a steady income stream to replace the loss of a bi monthly company paycheck?
User avatar
sergeant
Posts: 1849
Joined: Tue Dec 04, 2007 10:13 pm
Location: The Golden State

Re: Help please. Being forced to retire early..

Post by sergeant »

Poster retirein2020 says you can set up an automatic withdrawal to take the place of your paycheck. I think you should change the title of this thread; no one is forcing you to retire early.
For the ashes of his fathers, And the temples of his gods. | Pensions= 2X yearly expenses. Portfolio= 40X yearly expenses.
Topic Author
Poisns1
Posts: 95
Joined: Thu Apr 13, 2017 2:19 pm

Re: Help please. Being forced to retire early..

Post by Poisns1 »

single2019 wrote: Sat Nov 27, 2021 6:14 pm
Poisns1 wrote: Sat Nov 27, 2021 11:48 am
brcarls wrote: Sat Nov 27, 2021 9:03 am
island wrote: Thu Jul 15, 2021 6:07 pm Hi OP,
I just discovered this thread, hope you're still responding to it. I have family and friends that work for ATT.

Regarding the pension, my understanding is the pension multiplier of 1.6% will be reduced to 1.0% in 2022, BUT all years prior will still be calculated using the 1.6% so the pension you've already earned is not getting reduced. But obviously retiring before you want, eliminates the opportunity to add anything to it. That's self imposed.

Are you actually planning to take your pension at the end of the year when you're 55-56y/o or are you going to wait to start it at 65y/o?
Because if you take it early your pension is reduced 50%, 5% for each year below 65.
Have them run the calc based on if you took it now or postponed until 65.

Seems like if you really don't want to quit your job, just working a couple more years will give you enough income to self pay your health insurance and increase your pension.

But maybe I'm missing something else?

And I agree, no matter what you do steer clear of those self serving "advisors".
Good luck.

Qouting this because it seems very important if it applies to the op and I didn't see him address it.
Sorry, thought I answered this already.

They are reducing the future growth of my pension starting in 2022, but my accrued value up to this point will not change. Also, I can elect to retire by the end of the year and commence my pension benefit starting immediately. Delaying my pension does nothing to increase the payout amount, unlike some other company pensions that actually may increase the benefit by choosing to take it at a later date.
Have you decided to retire or still deciding?
For a T employee the pension date is critical. IRS segment rates of November decide your lump sum. Sorry to say but your posts are all over the map. Right now worry about when to take the lump sum as opposed to how to invest it.

TALK to other T retirees. Send me a PM. For all you know, you may have worked with me.
Well it was a tough decision, but I ended up staying for now. I wasn't ready to give up the paycheck or have to try and find something else for similar pay. Hopefully I'll get another 5-6 years to save more in the 401K and HSA before I lose my job. Then I'll only have about 4-5 years that I'll have to pay out of pocket for my own health insurance. A broker had showed me that there are some HMOs that are close to $0 monthly premium if you're in relative good health (I am right now) and don't require underwriting. So that's my plan. 5-6 more years then hit the "exit" button.

This will also give me more time to research my IRA portfolio AA while also trying to figure out what I'm going to do when I retire.

Thanks so far for all the help and advice to those that posted. This Boglehead forum rocks!
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