In search of guidance on asset allocation after transferring Roth IRA from Schwab to Vanguard

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mvaxe
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Joined: Tue Mar 24, 2020 7:03 pm

In search of guidance on asset allocation after transferring Roth IRA from Schwab to Vanguard

Post by mvaxe » Tue Mar 24, 2020 7:25 pm

I previously was using an advisor through Charles Schwab and after learning more about fees and how much they cost you over the course of your investing life, I decided to transfer my Roth IRA to Vanguard. Initially, my plan was to transfer all of my ETFs from Schwab to Vanguard and then sell those ETFs and buy VTSAX. I initiated the transfer prior to coronavirus and the economic fallout that has resulted. As it stands right now, I still am invested in the same asset allocation as I was prior to transferring everything to Vanguard. Currently I am invested in DYNF, GSIE, GSLC, LQD, JMIN, JQUA, SCHE, SCHF, SCHB and SPMD.

My question is, would it be a bad time to sell my ETFs to buy VTSAX? Or, does it really matter if I plan to implement a buy and hold strategy with VTSAX?

pkcrafter
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Re: In search of guidance on asset allocation after transferring Roth IRA from Schwab to Vanguard

Post by pkcrafter » Tue Mar 24, 2020 8:14 pm

Welcome to the forum,

Please list the names and percent of the funds you are using.

viewtopic.php?f=1&t=6212

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

typical.investor
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Re: In search of guidance on asset allocation after transferring Roth IRA from Schwab to Vanguard

Post by typical.investor » Wed Mar 25, 2020 2:01 am

mvaxe wrote:
Tue Mar 24, 2020 7:25 pm
Currently I am invested in DYNF, GSIE, GSLC, LQD, JMIN, JQUA, SCHE, SCHF, SCHB and SPMD.
Actually, you have a blend of potentially decent factor and total market funds.

One factor I think you are loading on is size which has done poorly in this latest drop. So I personally wouldn't want to switch that at this time. For instance, I suspect that SPMD has dropped more than VTSAX but I haven't checked. Same perhaps with GSIE, GSLC and maybe DYNF. Some people in this forum are really keen on factor funds, even if they haven't been stellar lately.

I also wouldn't be a fan of abandoning your international equities to move to US only. The USD had jumped in this latest distress, so again you'd be selling cheap to buy more expensive. SCHE and SCHF are both international. Nothing wrong with keeping those as is. GSIE is international too.

And what about your corporate bonds, I really don't think this is the time to sell out of those either. Were you going to move corporate bonds to stocks or to treasuries or to keep them?

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