My daughter graduated from college and has been working for over a year now. Her job pays well that would place her in 22% tax bracket. She lives a boglehead lifestyle, shares an apartment, does not plan to own a car. She has been managing her expenses well.Has a modest emergency fund. She has following 3 accounts that she has been asking my help with. The current allocation is as follows:
401k account through Security Benefit:
40% in Vanguard S&P 500 Index fund VFIAX
30% in Vanguard MidCap Index Fund VIMSX
30% in Vanguard SmallCap Index Fund NAESX
all other funds in the 401K account are actively managed. T Row Price 2060 Target date retirement fund has an expenses ratio of 0.74%.
None of the other choices in 401k account are boglehead options.
Roth IRA account with Fidelity
100% in iShares Core S&P 500 fund (IVV)
Vanguard brokerage account
100% in Target Retirement 2060 Fund (VTTSX)
The questions I have are as follows:
1. Roth account is with Fidelity and Brokerage account in Vanguard. This just kind of happened, but, they can easily be moved into one institution. Is it better to have them separate? or is it better to keep in under one roof?
2. Roth IRA is primarily for retirement. So, that is a real long term plan. What should be the investment choices there? Currently it is a clean slate and the little money in the existing account can be moved anywhere.
3. Brokerage account is money kept for potential graduate school (after 3 years) or Future home purchase (after 5 years). It is not clear if she will go to grad school. I don't want her to keep the money in CD's or T-Bills. She is willing to take risk, so, would like to invest in the market. What would be the best investment choices there?
Thank you for your advice.