On the right path?

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Topic Author
IronHorse1928
Posts: 66
Joined: Wed Sep 29, 2010 7:43 am

On the right path?

Post by IronHorse1928 »

Hello. This is my first post. I initially posted this topic on the M* Bogleheads Unite thread under the same subject. It was recommended to me to also post it on this forum for feedback. Thanks in advance. Please go to the M* thread if you wish to read the whole thread. I am posting what my prtfolio currently is and the proposed changes to the portfolio. Any thoughts are welcome.
I posted:

I have been reading this forum for a while and this is my first post. I have considered a financial advisor, but have decided to DIY.

OK, here is a snapshot of our investments. I believe my wife and I are in the ballpark as it pertains to our investments. I am 45 and my wife is 41. I am retired with a pension and I am currently not employed. My wife is employed with a 401K. She contributes 25% to her 401K with a company matching $3K as well as a company profit sharing.

We expect to not draw on any of these investments for 20 years. We have a 10 yr old and no separate college fund at this time.

We have a mortgage @ 4.50%, 15 yrs., 66% of the home is equity.

We have no credit card debt or auto loans.

Here is a breakdown:

Cash: 15 to 20K in a low interest savings account.

My Deferred Compensation 457 Plan:

20% Stable Income Fund, 10% Bond Fund, 25% Equity Index Fund, 20% Mid Cap Equity Fund, 10% Small Cap Equity Fund, 15% International Equity Fund. This plan was rebalanced 8/2010.


Wife 401K (previous company) Putnam Investments:

25% PTRAX, 25% RGAEX, 25% PRWCX, 15% SGIIX, 10% FSICX. This plan was rebalanced 8/2010

Note: we are considering moving this account to Vanguard. We would utilize VTSMX, VGTSX, REIT Index, NAESX, VBMFX and VIPSX. More than likely, the allocation would be 60% stocks and 40% Bonds.

Wife 401K (current company) Fidelity:

20% FDIKX, 20% VASGX, 20% Vanguard Russell 3000 Index, 20% PEBIX, 20% VHCAX. This plan was rebalanced 8/2010

Wife Roth IRA (Vanguard): recently opened and expected to be fully funded by the end of the year in Vanguard Total Bond Index.

My Roth IRA (Vanguard): recently opened and expected to be fully funded by the end of the year in Vanguard REIT Index Fund.

My IRA (Vanguard): 100% VASGX

Note: We are considering changing to an allocation of 70% stocks, 30% bonds with Vanguard Funds.

Joint Account Taxable (Vanguard): Currently 76% stocks and 24% bonds.

VWINX, VWELX, VWAHX, VWITX, VWESX, VGTSX, VTSMX

Any thoughts on our current allocation and potential tweaks would be welcome food for thought.
Last edited by IronHorse1928 on Wed Sep 29, 2010 9:11 am, edited 2 times in total.
Topic Author
IronHorse1928
Posts: 66
Joined: Wed Sep 29, 2010 7:43 am

On the right path?

Post by IronHorse1928 »

Proposed Portfolio



Taking all of our investments into consideration, this is what I have come up with so far. I have not implemented any transactions yet.

We are going to rollover the Putnam 401K to a Vanguard Traditional IRA. We kept the 457Plan, Fidelity 401K (currently active). I put everything on paper and made the necessary fund placements for each plan.


The Portfolio (all plans treated as one portfolio) will break down something like this:

65% stock funds and 35% bond funds

Stock Funds


26% Total Stock Mkt (Vanguard) (100% in taxable account)

20% Total International Index (Vanguard) (39% in taxable account)

12% Equity Index Fund (457)

9% Mid Cap Index Fund (457)

8% Small Cap Index Fund (457)

8% REIT Index (Vanguard IRA & Roth IRA)

4% Vanguard Russell 3000 (Fidelity 401K)

12% Wellington Fund (Vanguard IRA)

1% Wellesley Income Fund (Vanguard IRA)

Note: Wellington was broken down by 65/35 stocks/bonds and Wellesley was broken down by 35/65 stocks/bonds.


Bond Funds

25% Total Bond Fund (Vanguard IRA, Roth IRA and 457)

20% Inflation Protected Securities (TIPS) (Vanguard IRA)

15% Intermediate Term Treasury (Vanguard IRA)

5% Intermediate Term Tax Exempt (Vanguard) (100% in taxable account)

7% PIM EM Mkts BD Inst (Fidelity 401K)

12% Stable Income Fund (457)

12% Wellington Fund (Vanguard IRA)

4% Wellesley Income Fund (Vanguard IRA)

Note: Wellington was broken down by 65/35 stocks/bonds and Wellesley was broken down by 35/65 stocks/bonds.


All the above is taking into account 2 Roth IRA’s, 2 Traditional IRA’s, a 457 Plan, a 401K Plan and a joint taxable account. I believe it is far more tax efficient than what I currently have. I eliminated funds as best I could to be more efficient and I believe I have the basics covered. I believe I am in the ball park. Thoughts?
re@51.5
Posts: 196
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Location: West Michigan

Re: On the right path?

Post by re@51.5 »

IronHorse1928 wrote:We have a 10 yr old and no separate college fund at this time.
As a newbie, I am not any help, but as far as college, see this thread Actual College Expenses

Mike
vesalius
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Location: Texas

Post by vesalius »

First welcome, IronHorse1928.

Unless it is the entire fund library available at Fidelity could you edit your post and list the funds (at least the index funds) with expense ratios available from the Fidelity 401K.

Briefly any reason for both Wellesley and Wellington? Second, why the tax exempt bonds in Taxable, when you can still fit more bonds in Tax-advantaged space.
Last edited by vesalius on Wed Sep 29, 2010 12:17 pm, edited 1 time in total.
Topic Author
IronHorse1928
Posts: 66
Joined: Wed Sep 29, 2010 7:43 am

Post by IronHorse1928 »

401K Fidelity Current funds:
Fidelity Diversified International Fund - Class K (FDIKX) ER 0.78%
Vanguard LifeStrategy Growth (VASGX) ER 0.23%
Vanguard Russell 3000 Index Fund ER 0.06%
Vanguard Capital Opportunity Fund Class Admiral (VHCAX) ER 0.41%
PIMCO Emerging Markets Bond Instl CL (PEBIX) ER 0.84%

The plan is to consolidate the above to the following funds:
Fidelity Diversified International Fund - Class K (FDIKX) ER 0.78%
Vanguard Russell 3000 Index Fund ER 0.06%
PIMCO Emerging Markets Bond Instl CL (PEBIX) ER 0.84%

The company 401K Plan is limited in what funds it offers.

We are leaning toward eliminating Wellesley and going with Wellington.

Are Muni's no good? If I ever needed cash it would be the first fund I utilize.

Any thoughts on Intermediate Term Bond Index vs Intermediate Term Treasury?
vesalius
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Joined: Tue Jul 13, 2010 7:00 pm
Location: Texas

Post by vesalius »

IronHorse1928 wrote:401K Fidelity Current funds:
Fidelity Diversified International Fund - Class K (FDIKX) ER 0.78%
Vanguard LifeStrategy Growth (VASGX) ER 0.23%
Vanguard Russell 3000 Index Fund ER 0.06%
Vanguard Capital Opportunity Fund Class Admiral (VHCAX) ER 0.41%
PIMCO Emerging Markets Bond Instl CL (PEBIX) ER 0.84%

The plan is to consolidate the above to the following funds:
Fidelity Diversified International Fund - Class K (FDIKX) ER 0.78%
Vanguard Russell 3000 Index Fund ER 0.06%
PIMCO Emerging Markets Bond Instl CL (PEBIX) ER 0.84%

The company 401K Plan is limited in what funds it offers.

We are leaning toward eliminating Wellesley and going with Wellington.

Are Muni's no good? If I ever needed cash it would be the first fund I utilize.

Any thoughts on Intermediate Term Bond Index vs Intermediate Term Treasury?
I see now that my request was worded poorly, I meant could you list the options, not just the funds you have selected, available to you in the fidelity 401k and your 457 plans with ER's. That will help people here give better advice as to your overall fund selection.

Also your overall fund percentages add up to 200%, by convention the stickied post at the top from Laura request that the overall portfolio, both bonds and equities added together add up to 100%. Additionally, if you could edit the second post to include tax rates and the funds available in your non-vanguard accounts it makes it easier for folks here to offer more pertinent advice to you and your specific circumstances.
mptfan
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Joined: Mon Mar 05, 2007 8:58 am

Post by mptfan »

vesalius wrote:First welcome, IronHorse1928.
Vesalius, welcome to you too. ;)
Topic Author
IronHorse1928
Posts: 66
Joined: Wed Sep 29, 2010 7:43 am

On the right path?

Post by IronHorse1928 »

Edit with figures.
OK, here is a snapshot of our investments. I believe my wife and I are in the ballpark as it pertains to our investments. I am 45 and my wife is 41. I am retired with a pension and I am currently not employed. My wife is employed with a 401K. She contributes 25% to her 401K with a company matching $3K as well as a company profit sharing.

We expect to not draw on any of these investments for 20 years. We have a 10 yr old and no separate college fund at this time.

We have a mortgage @ 4.50%, 15 yrs., 66% of the home is equity.

We have no credit card debt or auto loans.

Here is a breakdown:

Cash: 3 months of funds.

My Deferred Compensation 457 Plan: (6 figures)
20% Stable Income Fund, 10% Bond Fund, 25% Equity Index Fund, 20% Mid Cap Equity Fund, 10% Small Cap Equity Fund, 15% International Equity Fund. This plan was rebalanced 8/2010.

Wife 401K (previous company) Putnam Investments: (6 figures)
25% PTRAX, 25% RGAEX, 25% PRWCX, 15% SGIIX, 10% FSICX. This plan was rebalanced 8/2010
Note: we are considering moving this account to Vanguard. We would utilize VTSMX, VGTSX, REIT Index, NAESX, VBMFX and VIPSX. More than likely, the allocation would be 60% stocks and 40% Bonds.

Wife 401K (current company) Fidelity: (5 figures)
20% FDIKX, 20% VASGX, 20% Vanguard Russell 3000 Index, 20% PEBIX, 20% VHCAX. This plan was rebalanced 8/2010

Wife Roth IRA (Vanguard) (4 figures): recently opened and expected to be fully funded by the end of the year in Vanguard Total Bond Index.

My Roth IRA (Vanguard) (4 figures): recently opened and expected to be fully funded by the end of the year in Vanguard REIT Index Fund.

My IRA (Vanguard) (6 figures): 100% VASGX
Note: We are considering changing to an allocation of 70% stocks, 30% bonds with Vanguard Funds.

Joint Account Taxable (Vanguard) (6 figures): Currently 76% stocks and 24% bonds.
VWINX, VWELX, VWAHX, VWITX, VWESX, VGTSX, VTSMX

Any thoughts on our current allocation and potential tweaks would be welcome food for thought.
Topic Author
IronHorse1928
Posts: 66
Joined: Wed Sep 29, 2010 7:43 am

On the right path?

Post by IronHorse1928 »

Edit with total portfolio percentages.
Proposed Portfolio

Taking all of our investments into consideration, this is what I have come up with so far. I have not implemented any transactions yet.
We are going to rollover the Putnam 401K to a Vanguard Traditional IRA. We kept the 457Plan, Fidelity 401K (currently active). I put everything on paper and made the necessary fund placements for each plan. Percentages are for 100% of stocks (65%) and 100% of bonds (35%) as well as percentage of each fund in regards to the total portfolio.

The Portfolio (all plans treated as one portfolio) will break down something like this:

65% stock funds and 35% bond funds

Stock Funds (Percentage indicates 100% of 65%)

26% Total Stock Mkt (Vanguard) (100% in taxable account) (17% of total portfolio)
20% Total International Index (Vanguard) (Fidelity 401K) (39% in taxable account) (13% of total portfolio)
12% Equity Index Fund (457) (8% of total portfolio)
9% Mid Cap Index Fund (457) (6% of total portfolio)
8% Small Cap Index Fund (457) (Vanguard) (5% of total portfolio)
8% REIT Index (Vanguard IRA & Roth IRA) (5% of total portfolio)
4% Vanguard Russell 3000 (Fidelity 401K) (2% of total portfolio)
13% Wellington Fund (Vanguard IRA) (9% of total portfolio)

Note: Wellington was broken down by 65/35 stocks/bonds and Wellesley was removed from portfolio.

Bond Funds (Percentage indicates 100% of 35%)

25% Total Bond Fund (Vanguard IRA, Roth IRA and 457) (9% of total portfolio)
20% Inflation Protected Securities (TIPS) (Vanguard IRA) (7% of total portfolio)
15% Intermediate Term Treasury (Vanguard IRA) (5 % of total portfolio)
5% Intermediate Term Tax Exempt (Vanguard) (100% in taxable account) (2 % of total portfolio)
7% PIM EM Mkts BD Inst (Fidelity 401K) (2% of total portfolio)
12% Stable Income Fund (457) (4% of total portfolio)
16% Wellington Fund (Vanguard IRA) (6% of total portfolio)

Note: Wellington was broken down by 65/35 stocks/bonds and Wellesley was removed from portfolio.

All the above is taking into account 2 Roth IRA’s, 2 Traditional IRA’s, a 457 Plan, a 401K Plan and a joint taxable account. I believe it is far more tax efficient than what I currently have. I eliminated funds as best I could to be more efficient and I believe I have the basics covered. I believe I am in the ball park. Thoughts?
Last edited by IronHorse1928 on Fri Oct 01, 2010 10:18 am, edited 1 time in total.
Topic Author
IronHorse1928
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Joined: Wed Sep 29, 2010 7:43 am

Post by IronHorse1928 »

457 Plan NYC Deferred Compensation Plan Options (no ticker symbols)

Stable Income Fund ER 0.26%
Bond Fund ER 0.27%
Equity Index Fund 0.06%
Socially Responsible Fund ER 0.47%
Mid Cap Equity fund ER 0.52%
International Equity Fund 0.40%
Small Cap Equity Fund 0.42%

The rest of the options are Target Funds by year with static allocation thrown in.
This account is tax advantaged. I do have the option of withdrawing from it without penalty. Any distributions are considered income. There is no intention to access these funds at this time.
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Taylor Larimore
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Location: Miami FL

Need additional information

Post by Taylor Larimore »

Hi IronHorse:

I have been watching this thread and I am beginning to understand your portfolio. However, we need to know exactly which account contains which funds.

Please list your current portfolio this way (I tried to complete the taxable account):

Joint Taxable Account with Vanguard
17% Vang. Total Stock Market
13% Vang. Total International
02% Vang. Intermediate-Term Tax-Exempt

Husband 457

Wife's former 401K with Putnam

Wife current 401K with Fidelity

Wife's Roth IRA with Vanguard

Wife's Traditional IRA

Husband's Roth IRA with Vanguard

Husband Traditional IRA with Vanguard

(above percentages must total 100%)

Questions:

* Is there a reason wife has not rolled over her old Putnum 401K into her Traditional IRA?

* Is your 10-year old expected to go to college? If "yes," why no tax-advantaged college plan?

Thank you.
"Simplicity is the master key to financial success." -- Jack Bogle
Topic Author
IronHorse1928
Posts: 66
Joined: Wed Sep 29, 2010 7:43 am

On the right path?

Post by IronHorse1928 »

Fidelity 401K options

Credit Suisse Trust U.S. Equity Flex I (WTSGX) ER 1.85%
Vanguard LifeStrategy Mod Growth (VSMGX) ER 0.23%
Vanguard LifeStrategy Consv Growth (VSCGX) ER 0.24%

Several T. Rowe Price Retirement Funds @ ER’s of 0.47%

Credit Suisse High Income Common CL (CSHIX) ER 1.38%
Alliance Growth Fund ER 0.57%
Vanguard PRIMECAP Fund Class Admiral (VPMAX) ER 0.37%
Vanguard Growth Index Fund Class Institutional (VIGIX) ER 0.08%
Fidelity Blue Chip Growth Fund - Class K (FBGKX) ER 0.74%
Horizon Core Value Collective Trust ER 0.84%
Large Cap Core Investment Strategy ER 0.67%
Vanguard Windsor II Fund Class Admiral (VWNAX) ER 0.27%
Vanguard Value Index Fund Class Institutional (VIVIX) ER 0.08%
Dodge & Cox Stock (DODGX) ER 0.52%
Fidelity Mid-Cap Stock Fund - Class K (FKMCX) ER 0.43%
Fidelity Low-Priced Stock Fund - Class K (FLPKX) ER 0.85%
T. Rowe Price New Horizons (PRNHX) ER 0.85%
T. Rowe Price Small Cap Value SHS (PRSVX) ER 0.97%
Vanguard Small Capitalization Index Fund Class Institutional (VSCIX) ER 0.08%
Vanguard Hrzn Global Equity (VHGEX) ER 0.47%
American Funds Capital World G/I R6 (RWIGX) ER 0.49%
Vanguard STAR Total Intl Stk Idx (VGTSX) ER 0.32%
Credit Suisse Trust International Equity Flex III Portfolio (WPETX) ER 1.85%
American Funds EuroPacific Growth Fund Class R6 (RERGX) ER 0.52%
Fidelity Emerging Markets Fund - Class K (FKEMX) ER 0.84%
Fidelity Europe Fund (FIEUX) ER 1.25%
Fidelity Japan Fund (FJPNX) ER 1.25%
T. Rowe Price New Asia (PRASX) ER 1.01%
Select Financial Services Portfolio (FIDSX) ER 0.96%
Select Natural Resources Portfolio (FNARX) ER 0.93%
Vanguard Energy Fund Class Admiral (VGELX) ER 0.31%
Vanguard Prec Metals & Mng Inv CL (VGPMX) ER 0.27%
Select Technology Portfolio (FSPTX) ER 0.92%
Vanguard Health Care Fund Class Admiral (VGHAX) 0.29%
Credit Suisse Commodity Rtrn Strtgy Com (CRSOX) 0.85%
Vanguard REIT Index Fund Class Institutional (VGSNX) ER 0.09%
Vanguard Convertible Securities (VCVSX) ER 0.72
Vanguard Long-Term US Treasury Adm (VUSUX) ER 0.12%
PIMCO Mortgage-Backed Secs CL I (PTRIX) ER 0.56%
Vanguard Inflation-Protected Securities Fund Class Institutional (VIPIX) ER 0.09%
BlackRock US Debt Index Fund Class T ER 0.08%
Vanguard Intermediate-Term Investment-Grade Fund Admiral Class (VFIDX) ER 0.11%
Vanguard Short-Term Investment-Grade Fund Class Administrative (VFSUX) ER 0.12%
PIMCO High Yield Institutional CL (PHIYX) ER 0.56%
Managed Income Portfolio II Class 3 ER 0.10%
PIMCO Global Bond (Unhgd) Instl CL (PIGLX) ER 0.56%
BlackRock International Bond Portfolio Class BlackRock (BIBBX) ER 0.82%
JPMorgan Prime Money Market Fund Agency Class (VMIXX) ER 0.32%

I have previously posted our holdings with ER’s
Topic Author
IronHorse1928
Posts: 66
Joined: Wed Sep 29, 2010 7:43 am

Re: Need additional information

Post by IronHorse1928 »

Taylor Larimore wrote:Hi IronHorse:

I have been watching this thread and I am beginning to understand your portfolio. However, we need to know exactly which account contains which funds.

Please list your current portfolio this way (I tried to complete the taxable account):
My current portfolio is the first post. I am in the process of transitioning the portfolio to the proposed portfolio.

Joint Taxable Account with Vanguard

23% of current portfolio

Husband 457

30% of current portfolio

Wife's 401K with Putnam

21%

Wife current 401K with Fidelity

6%

Wife's Roth IRA with Vanguard

1%

Wife's Traditional IRA

not funded yet....Putnam to be rolled to Vanguard

Husband's Roth IRA with Vanguard

1%

Husband Traditional IRA with Vanguard

18%

(above percentages must total 100%)

Questions:

* Is there a reason wife has not rolled over her old Putnum 401K into her Traditional IRA?

We are in the process of doing this rollover

* Is your 10-year old expected to go to college? If "yes," why no tax-advantaged college plan?

Weighing our options at this time...We want to get our portfolio on track first in terms of tax efficiency and diversification with the right mix of funds. It is a lot to work with because of the number of funds. We are working to make it leaner with what we have with fund placement and tax efficiency.
Please see the proposed porfolio in previous posts.
Thanks for taking a look......this is also posted on M* Bogleheads Unite thread.

Thank you.
Topic Author
IronHorse1928
Posts: 66
Joined: Wed Sep 29, 2010 7:43 am

Post by IronHorse1928 »

FYI on the 457 Deferred Comp Plan:

Stable Income: Managers - ICMA, Fid Cap MGT, BlackRock, PIMCO, Wellington Mgt Co.

Bond Fund: Managers- PIMCO & Blackrock

Equity Index Fund: Managers- Bank of NY Mellon

Mid Cap Equity: Managers- State St. Global Advisors (Index), Earnest Partners (Value) Wellington Mgt Co. (Growth)

International Equity Fund: Managers- State St. Global Advisors (Index), Mondrian Investment Partners (Value), T. Rowe Price Assoc (Growth), Alliance Capital (Core)

Small Cap Equity Fund: Managers- State St. Global Advisors (Index), Dimensional Fund Advisors (Value), T. Rowe Price Assoc. (Growth),
Wellington Mgt. Co. (Core)

There is a nice mix of value, growth, core and index options.
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Taylor Larimore
Posts: 32842
Joined: Tue Feb 27, 2007 7:09 pm
Location: Miami FL

A suggested portfolio

Post by Taylor Larimore »

Hi IronHorse:

This is a suggested portfolio (all Vanguard funds):

Taxable:
25% Total International

Husband Traditional IRA:
24% Total Stock Market
15% Total Bond Market
09% Inflation-Protected Securities

Wife Fidelity 401K
06% Vanguard Inflation-Protected Securities

Wife Traditional IRA (from Putnam):
21% Total Stock Market

Comments:

* In my opinion, your portfolio is unnecesarily complicated. I consolidated 8 accounts to 4 by 1) Moving husbands 457 to his Traditional IRA. 2) Moving Wife's Putnam IRA to her Traditional IRA. 3) Eliminating the meaningless 1% Roths and exchanging into the taxable account.

* Portfolio meets your desired 70/30 stock/bond allocation. This is your most important decision.

* Portfolio breakdown:
45% Total U.S. Stock Market
25% Total International (32% of equity)
15% Total Bond Market
15% Inflation-Protected Securities

* Portfolio is very low cost

* Portfolio is very diversified for low risk. It contains over 5000 worldwide securities.

* Portfolio is simple to understand and maintain

* No worry about underperforming the indexes.

* The entire portfolio will be consolidated into one Vanguard statement.

* For other advantages, see my today's post titled "3-Fund Portfolio."
"Simplicity is the master key to financial success." -- Jack Bogle
Topic Author
IronHorse1928
Posts: 66
Joined: Wed Sep 29, 2010 7:43 am

Post by IronHorse1928 »

If I move my 457 Plan to (rollover) to my TIRA, I loose the option to draw the funds if needed without penalty. Once I left NYC service, I was eligible to draw on the 457. Any 457 distribution would be treated as income. If I roll it to TIRA, it is locked up until 59 1/2. While I have no intention of drawing on the 457 Plan, it is a nice option to have just in case.
We intend to fund the Roths to the max (5K each, 10K total) for at least the next 10 years. Those percentages will grow, as well as being able to take advantage of the tax free growth, unless the geniuses in DC find a way to screw with the Roth earnings.
For your consideration.
Thanks for looking, I do like your suggestions.
vesalius
Posts: 794
Joined: Tue Jul 13, 2010 7:00 pm
Location: Texas

Post by vesalius »

IronHorse1928 wrote:FYI on the 457 Deferred Comp Plan:

Stable Income: Managers - ICMA, Fid Cap MGT, BlackRock, PIMCO, Wellington Mgt Co.

What is the yield on this fund?

Bond Fund: Managers- PIMCO & Blackrock

Is this a Long or intermediate Term bond fund?

Equity Index Fund: Managers- Bank of NY Mellon

What Index does this fund try and replicate?

Mid Cap Equity: Managers- State St. Global Advisors (Index), Earnest Partners (Value) Wellington Mgt Co. (Growth)

International Equity Fund: Managers- State St. Global Advisors (Index), Mondrian Investment Partners (Value), T. Rowe Price Assoc (Growth), Alliance Capital (Core)

Small Cap Equity Fund: Managers- State St. Global Advisors (Index), Dimensional Fund Advisors (Value), T. Rowe Price Assoc. (Growth),
Wellington Mgt. Co. (Core)

There is a nice mix of value, growth, core and index options.
Topic Author
IronHorse1928
Posts: 66
Joined: Wed Sep 29, 2010 7:43 am

Post by IronHorse1928 »

vesalius wrote:
IronHorse1928 wrote:FYI on the 457 Deferred Comp Plan:

Stable Income: Managers - ICMA, Fid Cap MGT, BlackRock, PIMCO, Wellington Mgt Co.

What is the yield on this fund?

TBD - new quarter starts tomorrow

Bond Fund: Managers- PIMCO & Blackrock

Is this a Long or intermediate Term bond fund?

The fund will maintain an average quality rating of A/A2 and will invest in a diverse array of securities across industry and market sectors, however, no more than 25% will be allocated to any one sector other than government, government agency and mortgage-backed bonds. The average duration of the fund’s investments is expected to be between 3 and 6 years. No more than 25% of the fund’s assets are to be invested in non-U.S. dollar denominated securities.


Equity Index Fund: Managers- Bank of NY Mellon

What Index does this fund try and replicate?

BNY Mellon Asset Management S&P 500 Index Fund, a separately managed account, attempts to provide investment results that parallel the performance of the unmanaged Standard & Poor’s 500 Composite Stock Price Index.* Given this objective, the fund is expected to provide investors with long-term growth of capital and income as well as a reasonable level of current income.


Mid Cap Equity: Managers- State St. Global Advisors (Index), Earnest Partners (Value) Wellington Mgt Co. (Growth)

International Equity Fund: Managers- State St. Global Advisors (Index), Mondrian Investment Partners (Value), T. Rowe Price Assoc (Growth), Alliance Capital (Core)

Small Cap Equity Fund: Managers- State St. Global Advisors (Index), Dimensional Fund Advisors (Value), T. Rowe Price Assoc. (Growth),
Wellington Mgt. Co. (Core)

There is a nice mix of value, growth, core and index options.
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Taylor Larimore
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Joined: Tue Feb 27, 2007 7:09 pm
Location: Miami FL

Comments

Post by Taylor Larimore »

IronHorse1928 wrote:If I move my 457 Plan to (rollover) to my TIRA, I loose the option to draw the funds if needed without penalty. Once I left NYC service, I was eligible to draw on the 457. Any 457 distribution would be treated as income. If I roll it to TIRA, it is locked up until 59 1/2. While I have no intention of drawing on the 457 Plan, it is a nice option to have just in case.
We intend to fund the Roths to the max (5K each, 10K total) for at least the next 10 years. Those percentages will grow, as well as being able to take advantage of the tax free growth, unless the geniuses in DC find a way to screw with the Roth earnings.
For your consideration.
Thanks for looking, I do like your suggestions.
Hi IronHorse:

I think you are right on both counts. 1) Leaving funds in your 457 plan allows penalty free withdrawal at any time (unlike a 401K). Also your costs are unusually low and there may be some addtiional safety in not having everything at Vanguard. 2) Adding to the Roths makes sense. They might also substitute as a tax-free education fund. I closed my small Roth to simplify, but, unlike your wife, I have no earned income to add to it.
"Simplicity is the master key to financial success." -- Jack Bogle
Topic Author
IronHorse1928
Posts: 66
Joined: Wed Sep 29, 2010 7:43 am

Post by IronHorse1928 »

[quote="vesalius"][quote="IronHorse1928"]FYI on the 457 Deferred Comp Plan:

Stable Income: Managers - ICMA, Fid Cap MGT, BlackRock, PIMCO, Wellington Mgt Co.

What is the yield on this fund?

The yield for the Stable Income Fund from April 1, 2010 to June 30, 2010 was 4.38%. The yield for the Stable Income Fund for the
period July 1, 2010 to September 30, 2010 will be 4.30%. The yield is an annualized rate which is recalculated on a quarterly basis.
When I get my statement for the quarter that ended on 9/30/10, I will know the yield for the quarter 10/1/10 - 12/31/10
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