Debt: $90k mortgage on $750k house with less than 5 years to go
Tax Filing Status: Married Filing Jointly
Tax Rate: 33% Federal, 5.1% State (in 2017 tax year). 24% in 2018 tax year.
State of Residence: MA
Desired Asset allocation: 80% stocks / 20% bonds
Desired International allocation: TBD
Current retirement assets $425k
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morgan stanley $210k mass mutual $113k fidelity $55k tiaa-cref $31k Fidelity HSA $6k Current Employer 401k $10k
Maxed out in 2018, contributing $25k in 2019
Current Employer 401k portfolio:
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24.00% Vanguard Total Intl Stock Index Admiral VTIAX (0.11% ER) 56.00% Fifth Third Bank Equity Index Fund A none (0.00% ER) 20.00% Vanguard Total Bond Market Index Admiral VBTLX (0.05% ER)
Thanks to the Bogleheads community, I've decided to kick my expensive Morgan Stanley managed account to the curb.
I was working to consolidate my previous employer's 401ks, and the forum here has been quite helpful to see how I've chosen badly in the past. The Mass Mutual and Fidelity accounts were in mutual funds (retirement date at Fido or a group of funds that auto-rebalanced at Mass Mutual.) My Morgan Stanley account was split between stocks, ETFs and Mutual funds. I can provide more detail on that breakdown if it helps.
Over the past two days I started the process to move all 3 accounts to Etrade, where I already have a taxable account with ESPP shares and non-ESPP ETFs. I've got some questions about diversifying away from ESPP shares (without incurring lots of extra tax)that I have held from a previous employer, but that's for another post.
The Mass Mutual and Fidelity 401k accounts are coming as a check, but the Morgan Stanley account will likely get transfered as-is.
My intention is to invest it all in VTTHX VANGUARD TARGET RETIREMENT 2035 INV (0.14% ER) as I want to not have to worry about rebalancing as time goes on.
FYI Etrade (via phone) was able to offer a better spiff for the transfer than on their website at https://us.etrade.com/what-we-offer/how ... /brokerage:
Congratulations! You are now enrolled in the TF60D_2500CFC_IRA promotion. Here is how it works:
Deposit or Transfer Receive
$1MM $2,500 60 Days of commission free trades
$500K - $999,999 $1,500 60 Days of commission free trades
$250K - $499,999 $1,000 60 Days of commission free trades
$100K - $249,999 $500 60 Days of commission free trades
$25K - $99,999 $200 60 Days of commission free trades
$10K - $24,999 60 Days of commission free trades
I have a nagging feeling I should look at hanging on to some of the stocks in the MS account, but then the Boglehead voice in the back of my head tells me to simplyfy--sell it all and put it in the target fund. I should listen to that voice, right?
Thanks to all in the community here for the collected wisdom.