RJ to Vanguard

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Topic Author
mindfulcoder
Posts: 4
Joined: Mon Dec 02, 2019 7:31 pm

RJ to Vanguard

Post by mindfulcoder » Mon Dec 02, 2019 8:47 pm

Dear Bogleheads,
I’m new to the Bogleheads forum and very much appreciate the wealth of information and community support offered! I recently moved my IRA, Roth IRA, and brokerage accounts from Raymond James (1.55% annual fee!) to Vanguard and transferred everything in kind except for one fund. I’m looking for advice on what, if any, funds to keep and any other suggestions you might have. I’m holding onto GE and Nokia in my taxable accounts for now (both inherited). I also recently moved 100% of my current 401k funds and future contributions into VFIAX.

Emergency funds:
4 months of expenses.

Debt:
small amount of credit card debt @15% APR
mortgage 4.175% 15 year fixed

Tax Filing Status:
Single
~$200k in capital loss carryover from exercised stock options.
May qualify for Head of Household as my elderly mother is living with me as of December 2018.

Tax Rate: 24% Federal, 5.25% State

State of Residence: NC

Age: 57

Desired Asset allocation:
75-25 stocks-bonds
Desired International allocation: 5% of stocks
Contributions:
8% - Wells Fargo 401k

Current retirement assets (apologies for the odd formatting):
Name Symbol % Holding Expense Ratio
Taxable at Vanguard
* GENERAL ELECTRIC CO GE 1.65
* NOKIA CORP SPON ADR NOK 0.03

Traditional IRA at Vanguard
Asset Mix:
70.6% Stocks
17.0% Bonds
5.5% Short-term reserves
6.9% Uncategorized

* IRA funds available to trade 0.20
* Invesco Oppenheimer SteelPath MLP Income Fund Class Y MLPZX 4.84 (1.68%)
* AT&T INC T 3.64
* American Funds Growth Portfolio Class F-2 GWPEX 3.32 (0.5%)
* Federated Strategic Value Dividend Fund Institutional Shares SVAIX 10.32 (0.92%)
* Fidelity Advisor® Emerging Markets Fund I Class FIMKX 3.48 (1.12%)
* FORD MOTOR CO NEW F 2.64
* The Hartford MidCap Fund Class I HFMIX 3.75 (0.82%)
* Janus Henderson Global Equity Income Fund Class I HFQIX 8.05 (0.76%)
* ISHARES RUSSELL 2000 GROWTH ETF IWO 2.55 (0.24%)
* ISHARES CORE S&P 500 ETF IVV 5.33 (0.04%)
* KRAFT HEINZ CO KHC 4.15
* Lord Abbett Bond-Debenture Fund Class F LBDFX 4.83 (0.69%)
* Lord Abbett Short Duration Income Fund Class F LDLFX 10.27 (0.49%)
* PIMCO CommodityRealReturn Strategy Fund Institutional Class PCRIX 2.27 (1.60%)
* SECTOR TECHNOLOGY SELECT SECTOR SPDR XLK 1.76 (0.13%)
* SPDR GOLD TRUST GOLD SHARES GLD 3.02 (0.40%)
* Templeton Emerging Markets Small Cap Fund Class Advisor TEMZX 3.10 (1.63%)
* VANGUARD HIGH DIVIDEND YIELD ETF VYM 3.37 (0.06%)
* Wells Fargo Special Mid Cap Value Fund - Class Inst WFMIX 3.08 (0.83%)
* FIRST TRUST R BERN TS AMER INDL 18-1 SA FE RE 3.99 —
*Vanguard Federal Money Market Fund (settlement fund) VMFXX 5.38 —

Wells Fargo 401k via current employer
* Vanguard 500 Index Fund Admiral Shares VFIAX 4.40 (0.04%)

Roth IRA at Vanguard
*TWTR 0.61
Last edited by mindfulcoder on Tue Dec 03, 2019 1:38 pm, edited 1 time in total.

InMyDreams
Posts: 640
Joined: Tue Feb 28, 2017 11:35 am

Re: RJ to Vanguard

Post by InMyDreams » Mon Dec 02, 2019 11:16 pm

mindfulcoder wrote:
Mon Dec 02, 2019 8:47 pm
May quality for Head of Household as my elderly mother is living with me as of December 2018.
Others will need to answer your investment questions.

Colorado TaxAide calculator can be useful in determining HOH status
https://cotaxaide.org/tools/Dependent%2 ... lator.html

The two buttons you probably want to pay closest attention to:
on the left side, "TP paid >50% of HH cost" (i.e., did the Taxpayer {you, OP} pay more than 50% of HouseHold costs in 2019), and,
on the right side, " Income less than:$ 4,200 (2019) excluding Social Security " (did your mother have more than $4200 in non-SS income in 2019)

oh, wait, there's a third box, the one above the income box:
on the right side, how much of the dependent's support did you provide.

retired@50
Posts: 628
Joined: Tue Oct 01, 2019 2:36 pm

Re: RJ to Vanguard

Post by retired@50 » Tue Dec 03, 2019 1:36 am

I'd suggest consolidating the funds and individual stocks in your IRA to VTSAX, VBTLX and VTIAX. These are the Vanguard Total Stock, Total Bond, and Total International Stock funds at Vanguard. By doing this you'll reduce your expenses and be fully diversified. It's practically impossible to understand and visualize what you own when you have so many different funds. By simplifying your holdings you'll be able to re-balance once per year in under 10 minutes.

I'd also suggest you find a way to pay off the credit card debt as soon as possible. Holding an emergency fund and having credit card debt are at cross purposes. The credit card debt is the emergency.

Regards,

User avatar
Wiggums
Posts: 1922
Joined: Thu Jan 31, 2019 8:02 am

Re: RJ to Vanguard

Post by Wiggums » Tue Dec 03, 2019 2:02 am

mindfulcoder wrote:
Mon Dec 02, 2019 8:47 pm
Dear Bogleheads,
I’m new to the Bogleheads forum and very much appreciate the wealth of information and community support offered! I recently moved my IRA, Roth IRA, and brokerage accounts from Raymond James (1.55% annual fee!) to Vanguard and transferred everything in kind except for one fund. I’m looking for advice on what, if any, funds to keep and any other suggestions you might have. I’m holding onto GE and Nokia in my taxable accounts for now (both inherited). I also recently moved 100% of my current 401k funds and future contributions into VFIAX.

Emergency funds:
4 months of expenses.

Debt:
small amount of credit card debt @15% APR
mortgage 4.175% 15 year fixed

Tax Filing Status:
Single
~$200k in capital loss carryover from exercised stock options.
May quality for Head of Household as my elderly mother is living with me as of December 2018.

Tax Rate: 24% Federal, 5.25% State

State of Residence: NC

Age: 57

Desired Asset allocation:
75-25 stocks-bonds
Desired International allocation: 5% of stocks
Contributions:
8% - Wells Fargo 401k

Current retirement assets (apologies for the odd formatting):
Name Symbol % Holding Expense Ratio
Taxable at Vanguard
* GENERAL ELECTRIC CO GE 1.65
* NOKIA CORP SPON ADR NOK 0.03

Traditional IRA at Vanguard
* IRA funds available to trade 0.20
* Invesco Oppenheimer SteelPath MLP Income Fund Class Y MLPZX 4.84 (1.68%)
* AT&T INC T 3.64
* American Funds Growth Portfolio Class F-2 GWPEX 3.32 (0.5%)
* Federated Strategic Value Dividend Fund Institutional Shares SVAIX 10.32 (0.92%)
* Fidelity Advisor® Emerging Markets Fund I Class FIMKX 3.48 (1.12%)
* FORD MOTOR CO NEW F 2.64
* The Hartford MidCap Fund Class I HFMIX 3.75 (0.82%)
* Janus Henderson Global Equity Income Fund Class I HFQIX 8.05 (0.76%)
* ISHARES RUSSELL 2000 GROWTH ETF IWO 2.55 (0.24%)
* ISHARES CORE S&P 500 ETF IVV 5.33 (0.04%)
* KRAFT HEINZ CO KHC 4.15
* Lord Abbett Bond-Debenture Fund Class F LBDFX 4.83 (0.69%)
* Lord Abbett Short Duration Income Fund Class F LDLFX 10.27 (0.49%)
* PIMCO CommodityRealReturn Strategy Fund Institutional Class PCRIX 2.27 (1.60%)
* SECTOR TECHNOLOGY SELECT SECTOR SPDR XLK 1.76 (0.13%)
* SPDR GOLD TRUST GOLD SHARES GLD 3.02 (0.40%)
* Templeton Emerging Markets Small Cap Fund Class Advisor TEMZX 3.10 (1.63%)
* VANGUARD HIGH DIVIDEND YIELD ETF VYM 3.37 (0.06%)
* Wells Fargo Special Mid Cap Value Fund - Class Inst WFMIX 3.08 (0.83%)
* FIRST TRUST R BERN TS AMER INDL 18-1 SA FE RE 3.99 —
*Vanguard Federal Money Market Fund (settlement fund) VMFXX 5.38 —

Wells Fargo 401k via current employer
* Vanguard 500 Index Fund Admiral Shares VFIAX 4.40 (0.04%)

Roth IRA at Vanguard
*TWTR 0.61
I use the three fund portfolio

https://www.bogleheads.org/wiki/Three-fund_portfolio

HomeStretch
Posts: 2894
Joined: Thu Dec 27, 2018 3:06 pm

Re: RJ to Vanguard

Post by HomeStretch » Tue Dec 03, 2019 6:10 am

Welcome! Good move from RJ to Vanguard.

Suggest you sell all high ER holdings and individual stocks to move to a low-cost diversified portfolio. There are no tax consequences for changes to your Roth IRA, tIRA and 401k holdings. Consider adopting a 3-fund portfolio, which could look something like this:

Taxable Account - Vanguard
2% individual stocks you want to hold (GE, NOK)
(Turn off reinvestment of dividends and use to buy VTSAX )

Roth IRA - Vanguard
1% VFIAX S&P 500

Traditional IRA - Vanguard
64% VFIAX S&P 500
4% VTIAX International TSM
25% VBTLX US TBM

401k - WF
4% VFIAX S&P 500

Save at least 15% of gross income each year for retirement. Are you making any other annual contributions (like to Roth IRA) besides 8% to your WF 401k?

Payoff the CC debt.

Topic Author
mindfulcoder
Posts: 4
Joined: Mon Dec 02, 2019 7:31 pm

Re: RJ to Vanguard

Post by mindfulcoder » Tue Dec 03, 2019 12:56 pm

@HomeStretch
What do you think about TSM vs VFIAX S&P 500?

User avatar
Taylor Larimore
Advisory Board
Posts: 28810
Joined: Tue Feb 27, 2007 8:09 pm
Location: Miami FL

Re: RJ to Vanguard

Post by Taylor Larimore » Tue Dec 03, 2019 1:16 pm

mindfulcoder wrote:
Tue Dec 03, 2019 12:56 pm
@HomeStretch
What do you think about TSM vs VFIAX S&P 500?
mindfulcoder:

In my opinion, it makes little difference. Both are excellent low-cost and tax-efficient funds.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "Total Stock Market Index Fund is my favorite fund."
"Simplicity is the master key to financial success." -- Jack Bogle

Topic Author
mindfulcoder
Posts: 4
Joined: Mon Dec 02, 2019 7:31 pm

Re: RJ to Vanguard

Post by mindfulcoder » Tue Dec 03, 2019 2:14 pm

@Taylor, thank you. very good to know and appreciate the quote from JB.

Topic Author
mindfulcoder
Posts: 4
Joined: Mon Dec 02, 2019 7:31 pm

Re: RJ to Vanguard

Post by mindfulcoder » Fri Dec 06, 2019 1:11 am

Would you suggest a mortgage refi at this time?

retired@50
Posts: 628
Joined: Tue Oct 01, 2019 2:36 pm

Re: RJ to Vanguard

Post by retired@50 » Fri Dec 06, 2019 1:17 am

mindfulcoder wrote:
Fri Dec 06, 2019 1:11 am
Would you suggest a mortgage refi at this time?
I certainly would, it would seem that you should be able to get a better rate than your current 4.175, especially for a 15 year term.

Regards,

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