Investment help for new Roth 457 account - California State University employee

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CaliHummingbird
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Joined: Fri Apr 16, 2021 1:07 pm

Investment help for new Roth 457 account - California State University employee

Post by CaliHummingbird »

I'm a California State University employee so I get access to several retirement accounts: CalPers Pension, 403B account with Fidelity, and 401K or 457B accounts with Savings Plus Now. I recently opened a Roth 457 account with Savings Plus Now because I like the idea of having an extra account in case I don't stay in higher education.
I recently reallocated my investments to reflect more of the 3-fund portfolio. But now that I'm starting a Roth 457 Savings Plus Now account, I wanted to ask advice for what investments should I do for this account. And I'm not sure if i'm investing in the right fund for my Roth IRA.

Thank you for any advice you provide!

Note: I am a 36 female breadwinner for my family with the plan of my husband staying home.

Emergency Funds:
6 months
Debt: $19,161 (student loans) – in Public Service Loan Forgiveness Program – hopefully $14,000 will be forgiven at end of this year, and will pay remaining $5,000.
Tax Filing Status: Married Filing Jointly
Tax Rate: 12% Federal; 4% State
State of Residence: CA
Age: 36
Desired Asset Allocation: 88% stocks / 12% bonds
Desired International Allocation: 25% of stocks

Pension with CalPERS:
• I contribute 7.25% of salary to pension
• Currently has $20,201.74 (retirement formula 2% at 62)

Current retirement assets (outside pension): 113,807.73
403B with Fidelity (no employer match):
• 12.4 % Vanguard Total Bond Market Index (VBTIX) (0.04%)
• 25.9 % Vanguard Total International Stock Index (VTSNX) (0.08%)
• 17.3% Vanguard Institutional Index Fund (VIIIX) (0.02%)
• 8.54% Vanguard Total Stock Market Index Fund (VIEIX) (0.03%)

Roth IRA with Fidelity:
• 23.39% Fidelity Zero Total Market Index (FZROX) (0%)

457B with TIAA (old employer account):
• 12.36% Vanguard Total Stock Market Index (VITSX) (0.03%)
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Total Investments: 62% U.S. Stock | 26% Intl Stock | 12% Bonds
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Contributions:
• $2,610: 403B
• $6,000: Roth IRA
• Will start contributing $150/month or more in Roth 457: 1,800/year

Available Funds with Savings Plus Now:


• Small Cap Index Fund (0.08%)
• Mid Cap Index Fund (0.08%)
• Large Cap Index Fund (0.06%)
• International Index Fund (0.12%)
• Target Data Fund – 2050 (0.28%)

Questions:
• My Roth IRA is currently in a Fidelity Zero Total Market Index (FZROX). Do people recommend I invest in this for my Roth or use another fund?
• Creating a Roth-457 with Savings Plus Now: What funds do you recommend I invest in?
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