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Orange_Lazarus posted:Please tell me you're not joking. I seriously want to be resurrected in the 24th century. It's totally a thing! Cryonics Institute FAQ posted:Q: What about the cost? I heard cryonics is incredibly expensive.
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Aug 27, 2013 14:23
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Not really sure how to respond to that...  .
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Aug 27, 2013 16:03
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Internet Nobody fucked around with this message at 03:19 on May 5, 2017 |
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Aug 27, 2013 17:22
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I won't comment on the allocations but the current IRA contribution limit is $5,500 per year, so if you want to put $8,000 away you could put that extra $2,500 into the 401k above the 4%. You might need some of it to meet the minimum fund amount for your IRA also ($1,000 for target retirement funds, $3,000 or other amounts for other funds at vanguard). Also, you said transaction fees similar to an IRA; your IRA at Vanguard won't have transaction fees if you're buying Vanguard funds. It shouldn't have any fees other than expense ratio if you're doing electronic mailing.
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Aug 27, 2013 18:26
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Tom Steele posted:Starting a new job next week and one of the forms I have to fill out is my 401k enrollment - company gives a 50% match up to 4%, so I plan on contributing 4% and putting the rest into an IRA - about 8k per year to start. I have to fill out a form with my allocations and I am looking for some help. For reference, I am 23 and this is my first job. First question, how old are you ? (time horizon for retirement) Are there fees for the Personal Choice account? Those index funds fees are high, can get an index etf for much lower. Have you thought about Roth vs Traditional on the IRA ? As far as target fund you would be able to save some on fees with a general diversification strategy and low cost index funds. Edit: Good choice on vanguard by the way they have done great things lowering fees for everyone.
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Aug 27, 2013 18:33
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Internet Nobody fucked around with this message at 03:21 on May 5, 2017 |
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Aug 27, 2013 18:50
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Tom Steele posted:I'm 23 right now. I have thought about Roth vs Traditional - from what I can tell I should go with Roth, as I wouldnt get any tax benefit from Traditional because I make too much. I am checking on the fees on the PCRA account, I know there are transaction fees of 8.95 for most non-Schwab stocks/etfs/funds, basically acts the same way as a brokerage account. There also may be a monthly/yearly fee to have this account setup, but I am not sure. As soon as I find out I will post here, but lets assume for now there is no fee besides transaction fees. First off good for you starting young and putting the compounding to work for you. Of course these are my personal views but I am a big fan of Index investing, in the long run meeting the market isn't a bad thing and of course most funds don't meet let alone beat the market It looks like there are schwab ETFs with very low fees in the .04% to .08% for domestic equities and .09% to .20 % for Intl equities. (See below) I don't feel 100% comfortable telling you what mix you should do, but As far as the IRA this depends a bit on your level of income. Typically 23 yr olds aren't in the top tax bracket so there is an easier case to be made for going into the Roth. Also there are income limitations on Roth (For tax year 2013: May not be eligible if your income is over $127,000 for single filers and $188,000 for joint filers.) So it is good to get money into a Roth while you still can. It may not be an option later on. There are arguments to be made for not going Roth as well, but I personally like a little diversification in my tax base as well so I'm not completely at the mercy of future (unknown) tax rates at my retirement. So max that bad boy roth out, put money into your 401k, and when you get raises work on hitting that 401k max. Fast forward a decade or so and you should have a nice pile of money. http://www.schwab.com/public/schwab/investing/accounts_products/investment/etfs/schwab_etfs/market_cap_index_etfs
Multi-Cap Core SCHB 0.04% Large-Cap Core SCHX 0.04% VV Multi-Cap Growth SCHG 0.07% Large-Cap Value SCHV 0.07% Equity Income SCHD 0.07% Mid-Cap Core SCHM 0.07% Small-Cap Core SCHA 0.08% Real Estate SCHH 0.07% International Large-Cap Core SCHF 0.09% International Small/Mid-Cap Core SCHC 0.20% Emerging Markets SCHE 0.15% J4Gently fucked around with this message at 19:46 on Aug 27, 2013 |
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Aug 27, 2013 19:38
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. Internet Nobody fucked around with this message at 03:20 on May 5, 2017 |
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Aug 27, 2013 19:46
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Tom Steele posted:So assuming that there isnt a ridiculous (>$50/yr) fee to use the PCRA option, I should just use that? I'm making around $70k, so I am thinking I should do a Roth at least for the next few years, and then reconsider if/when i make more than the limit. Yes, basically you want to be in a domestic index fund(s) and an international index fund(s) and your default choice for a domestic index fund in your 401k is .50%. That is 10 times the fees of the schwab ETF (you just need to make sure you can get that etf without transaction fees every paycheck) if the ETF has transaction fees then look to the Schwab index funds like (SWPPX) .06% Yes on the Roth! It does not really matter how you split up the investments between the IRA and the 401k. You could do international index fund in the IRA, and the domestic index fund(s) in the 401k. Assuming you are thinking about long term investing (not saving for short term goals like a new car, house down payment etc.. which need to be in a taxable account to access it) When thinking about what fund or investment you want to put into an account (401k, vs IRA, vs taxable investment account) the way I look at it is taxable vs tax deferred. You want things that generate the highest tax liability( dividends, bond interest etc..) in the tax-deferred accounts to be efficient. If you want to buy a few individual stocks those can go in a regular taxable account as it gets the benefit of the lower long term capital gains rate (after a 1 yr hold) on those investments, and you pick and choose the time you want to sell.
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Aug 27, 2013 20:00
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Tom Steele posted:I am still looking for help with fund allocation, especially when it comes down to what to put in 401k vs IRA. I'm guessing more detail than you'll ever want, but the general strategy section should answer your questions. http://www.bogleheads.org/wiki/Principles_of_Tax-Efficient_Fund_Placement
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Aug 27, 2013 20:18
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Fancy_Lad posted:I'm guessing more detail than you'll ever want, but the general strategy section should answer your questions. Wow that is very nice way of presenting what I was trying to get at. 
J4Gently fucked around with this message at 20:25 on Aug 27, 2013 |
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Aug 27, 2013 20:23
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Fancy_Lad posted:I'm guessing more detail than you'll ever want, but the general strategy section should answer your questions. Actually I just read that this morning, just wanted someone to confirm what I was thinking. Thanks for all the help, and I will definitely use the PCRA account if I can do that without fees.
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Aug 27, 2013 20:25
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My dad just passed after a fight with cancer () and I'm looking to this thread for advice for my surviving mother. My brother-in-law and I are going over everything right now and here's what we have: Assets:
Her liabilities are basically she owes $230k on a $260k mortgage, and we probably have $20k of funeral related costs due in the next month or so. Balance sheet seems decent on paper but my question is more about setting up systems for the next few years. For all the investment planning I do for my wife and I I'm a little unclear on what to do at her stage, when the real breadwinner goes before both people are retired. My mother is 60 and earns $30k as a school teacher. Long-term will need to pay for everyday things, the mortgage, and COBRA health care (she doesn't get it although that may change with ACA). Right now should she wait until she burns through the life insurance payout and then draw on dad's IRA or wait until she burns through the life insurance policy? Will she get anything through SS / OASDI? Are there any other vehicles we should look at establishing for her? Thanks for any help, we're a little overwhelmed with stuff to do right now but I want to make sure we at least have a game plan before we leave town.
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Aug 27, 2013 23:55
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Sorry to hear that.  Are there any outstanding medical bills related to your dad's care?
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Aug 28, 2013 00:33
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First of all condolences. On the bright side you should be proud of your dad for leaving your mom in this situation. Do you know approximately how much your dad was making prior to his passing or what their average expenses were? This would give us an indication of the lifestyle they were used to living. However right now your mom has about $1.5 million in assets (1.2 being liquid). A general rule of thumb is that one can take approximately 4% out per year in perpetuity meaning your mom will have an income of about $48k-60k/year. Also you haven't mentioned your fathers social security but I am betting that will also be a substantial boost to her income as well. Based on the limited information you provided, it sounds like she might be in great shape. She will only need to hold on for five years with COBRA before becoming eligible for Medicare. Depending on her healthcare options, she may no longer need to work for the rest of her life. You mention the amounts of her accounts, but not what they are invested in. If any more than $50k of this is in a single stock (may be possible depending on your dads compensation benefits) I'd be moving that out into a broad indexed mutual fund ASAP. In general I'd move most of her investments into broad index mutual funds that have low costs (e.g. Fidelity, Vanguard, etc). This is general advice, I'd seriously look at an estate attorney (did your father have one?) and at hiring a CFP for a short time to get things planned out. There may be some serious tax implications such as a portion, possibly $150k of your father insurance policy through work may be taxable and paying this bill will require planning. I think there may not be a need to continue CPA/CFP services for a long time but at least to sort it out initially. Depending on your mother's independence and ability to manage money I'd probably stay plugged in and monitor her accounts to ensure she isn't doing anything stupid or getting conned into it by some scummy 'advisor'.
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Aug 28, 2013 00:45
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Hed posted:
If she has been a teacher a long time (depending on the where state she works), then she may have a pension on top of whatever other retirement savings she has accumulated.
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Aug 28, 2013 00:57
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flowinprose posted:If she has been a teacher a long time (depending on the where state she works), then she may have a pension on top of whatever other retirement savings she has accumulated. Yep, figure out this first. My suggestion would run along the lines of paying the mortgage off, and then using the remaining lump sum to fund an annuity with cost-of-living indexed payments to supplement any pension income. Simple to administer, simple to track. This option has the benefit that it can be postponed (and interest earned on the entire amount) until your mother retires and has no more active income. Another choice might be to use *all* the proceeds for an annuity, and just take the monthly mortgage payments out from the annuity payments. This would be assuming that the house value doesn't appreciate substantially and that you and the surviving family members don't want the property when she passes. This would likely have to start immediately, though. And kansas is right - your father did very, very well in making sure your mother will be taken care of and you should be proud of him. I've seen people in way, way worse situations.
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Aug 28, 2013 01:25
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I've been thinking about opening a Roth IRA through Vanguard but I don't know if I should invest differently as compared to my 401k that I have through my company. I guess overall, I'm looking for investment advice so that I'm properly diversified across both my 401k and soon to be created Roth. I'm 26 and I'd like to retire in 30 years but I understand if that comes off as a bit of wishful thinking. My current contribution percentages are (401k is through ING, fyi): 10% company stock 26% Equity Units 4% Extended Market Units 37% International Equity Units 23% Bond Units This did well for me in 2012 with a 9.33% investment performance rate, but perhaps there's room for improvement. As for the soon to be opened Vanguard Roth, what should I be looking to invest in if I take into account my 401k distribution?
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Aug 28, 2013 02:19
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Pilkington posted:I've been thinking about opening a Roth IRA through Vanguard but I don't know if I should invest differently as compared to my 401k that I have through my company. I guess overall, I'm looking for investment advice so that I'm properly diversified across both my 401k and soon to be created Roth. I'm 26 and I'd like to retire in 30 years but I understand if that comes off as a bit of wishful thinking. Now, how to implement that allocation. Both these accounts will be tax-advantaged, so there is not going to be any tax reason to hold one asset class or fund in one account over the other. The only contributing factor to where you would invest is basically the availability and relative expense ratios available funds. For instance, if your bond fund in your 401k is expensive, you could move the bond portion of your portfolio to the Roth, and keep everything else in your 401k. The "lazy" (but perfectly fine option) would be just to dump the Roth into a target retirement fund of some sort. 2045 is 63% US equity, 27% int'l equity, and 10% bond for instance. Adding that in your Roth would tilt your entire portfolio more towards US equities and less towards bonds, which wouldn't be a bad thing IMO.
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Aug 28, 2013 04:32
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Buying company stock just seems like a bad idea on principle, unless you have a specific incentive to do so. Not only are you putting a lot of eggs in one basket, but your financial situation is already hugely tied to the success of your company, since they are the source of all your income. Exposing any of your savings to the same risk is playing with fire.
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Aug 28, 2013 09:06
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Is there any advice for Brits in this thread? I couldn't see anything linked on the front page, and 151 pages is an awful lot to trawl through. I'm not sure I qualify for work-based pensions at the moment, and I'm sitting on a small bit of savings (just above the £1k mark), and with 20% of my income going to it each month. Is there any way to get any kind of decent return on that, as in above 4%, which is the best savings account I can find? I can't help but think it's too small to really start appreciating right now, but there's no time like the present to begin, right?
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Aug 28, 2013 10:19
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If I'm to raise my US equity position, should I be upping my extended market units, US equity units, or a combination of the two? As for zeroing out the stock, I can see you guys are right about that. Looking through my plan, I don't get any special discounts and the stock costs a lot already (bounces between 87 and 90ish a share). Maybe if there's a crash in our stock I could see myself getting more but it doesn't seem worth it right now. That's what I get for listening to the old-timers, "You put your money in *company* stock and you'll be set for life!" Of course, they bought in back in the 80s at like $3 and have been through three splits. Regarding the rates on my 401k, perhaps it's my lack of experience and knowledge but they seem decently low. Not sure which I should focus more on in the Roth but here are the rates my 401k has posted currently: Equity Units Fees and Expenses As a %: 0.02% (0.01% investment management fee plus other administrative costs) Per $1000: $0.20 Extended Market Units Fees and Expenses As a %: 0.03% (0.01% investment management fee plus other administrative costs) Per $1000: $0.30 International Equity Units Fees and Expenses As a %: 0.06% (0.03% investment management fee plus other administrative costs) Per $1000: $0.60 Bond Units Fees and Expenses As a %: 0.02% (0.01% investment management fee plus other administrative costs) Per $1000: $0.20 And since I just started my Roth, I currently have my money in the "lazy" option. The balance seems pretty good so maybe I'll stick with that for a while, but I'd like to have options so I can be more active in my management.
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Aug 28, 2013 14:22
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Pilkington posted:If I'm to raise my US equity position, should I be upping my extended market units, US equity units, or a combination of the two? You are already long your company stock by having a job there so you don't want to be hit twice if something goes wrong at your firm. What exactly are you buying in your 401k ? is it a specific mutual fund ? If you want to be weighted a little more heavily in us equities need to know what you are getting, what holdings are in "Equity Units" and "Extended Market Units" Morning star has a great tool for figuring out what you are actually buying in different funds as often times different funds basically have the same stocks in them so you aren't really getting the diversification that you expect. Worth while to check it out http://portfolio.morningstar.com/Rtport/Free/InstantXRayDEntry.aspx As far as being more active, once you have a good diversified plan you kind of just need to let it go on auto pilot re-balancing once or twice a year to keep on the balance targets. Many funds have short term trading fees which you don't want to be inuring. If you want some activity I like to have some fun money in a brokerage account to play around with but it is a relativly small amount that isn't part of my long term financial plan.
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Aug 29, 2013 15:14
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Someone in the newbie thread suggested I post here. I work for a mutual fund company so I can obviously invest in a lot of our funds and Also our collective investment trusts. I'm not sure i really understand the CITs - they don't list fees on the profile sheets for funds or CITs but there's also no link to a prospectus for these where I could potentially find the fees. for the sake of not posting the whole list, they also have a couple vanguard options whose fees seem way more straightforward:: Vanguard Extended (VIEIX) Vanguard Institutional (VINIX) Vanguard Total Bond (VBTSX) Vanguard Total International (VTSGX) Is there a good combination of those anyone would recommend? Are CITs worth considering? And is there a good way to figure out the fees? They're our products and I still can't find much relating to them.
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Aug 29, 2013 16:29
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HooKars posted:Someone in the newbie thread suggested I post here. I work for a mutual fund company so I can obviously invest in a lot of our funds and Also our collective investment trusts. I'm not sure i really understand the CITs - they don't list fees on the profile sheets for funds or CITs but there's also no link to a prospectus for these where I could potentially find the fees. for the sake of not posting the whole list, they also have a couple vanguard options whose fees seem way more straightforward:: I think that is the drawback of the CIT. Since they are not regulated by the SEC, they are a lot more opaque as they don't have the same regulation and disclosure requirements.
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Aug 29, 2013 16:36
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SmuglyDismissed posted:I think that is the drawback of the CIT. Since they are not regulated by the SEC, they are a lot more opaque as they don't have the same regulation and disclosure requirements. I finally found something on our work computer that lists fees. It says "Management fees: 44" which just left me more confused.
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Aug 29, 2013 16:40
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HooKars posted:Someone in the newbie thread suggested I post here. I work for a mutual fund company so I can obviously invest in a lot of our funds and Also our collective investment trusts. I'm not sure i really understand the CITs - they don't list fees on the profile sheets for funds or CITs but there's also no link to a prospectus for these where I could potentially find the fees. for the sake of not posting the whole list, they also have a couple vanguard options whose fees seem way more straightforward:: I'm not an expert on CITs as well but did find a good overview of them http://fiduciarynews.com/2010/03/cits-in-401ks-the-good-the-bad-and-the-ugly/ To compare you would really need to know the fee structure of your CIT options also what they hold to compare to the Vanguard options. quote:The New York Times recently ran a story that might interest the typical 401k plan fiduciary (“A Low Fee Option May Be Coming to a 401k Near You,” New York Times, March 16, 2010). Like many similar articles, this piece reads like the author 704670_95274685_hospital_cabin_stock_xchng_royalty_free_300has discovered a new-found panacea to all that ails the 401k fiduciary. The article offers this tantalizing lead: Collective Investment Trusts (CITs) have “been around for decades and they’re cheaper than mutual funds, yet few companies offer collective investment trusts in their 401(k) plans. But that seems to be changing.”
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Aug 29, 2013 16:45
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I need some help rebalancing my retirement accounts. I have an IRA with Vanguard and a 401k. The IRA is just running the Target 2050 fund and I let that do its thing. My 401k though is such a shitshow because the funds are so crap I feel like I have to chase yield or else I'm literally going to lose 3% because even the cash reserve has a gently caress you expense ratio. I don't have a company match, but I'm throwing tons of money at it because I'm too poor to move out of my parents so every penny that isn't in my extremely frugal budget gets pumped into my 401k. Though I have scaled it back a bit recently. Anyway, fixing my 401k means rebalancing across my IRA as well and I'd like you guys to see if I'm missing any options... I was thinking that using my 401k to hold the bond portion of my allocation wouldn't be terrible, but I would still have a lot of money I'd need to allocate as my 401k is about half the size of my IRA 401k: ~$8500 across a lot of crap funds IRA: $16600 in VFIFX 401k funds: OPBCX bonds OUSCX limited bonds CSCXX cash and the rest: ODICX , OTFCX , OPBCX , OGLCX , OSICX , OIDCX , OUSCX , OPMCX , OAACX , OCCIX , OCAIX , OCMIX , OCRDX , CGRCX And in my IRA I'd replace the target fund with the equivalent allocation in the total US and INTL funds. But where should I put the rest of my money from the 401k after i reach my allocation, because there will be a few thousand left over that doesn't quite fit in that allocation, and the 401k doesn't have any fund or combination of funds that comes close to replicating the total market from what I can see :\
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Aug 29, 2013 17:16
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SeaWolf posted:401k funds: ~2% ERs AND a 1% load across the board.  How long have you been investing? If it's more than three years, then it doesn't look like you've been maxing out your IRA, and until you do you have no reason to even consider touching this pile of dogshit. If less, then you've been putting enough away into the 401k that you could be putting it towards improving your life situation and moving out of your parents' place instead.
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Aug 29, 2013 23:54
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Kilty Monroe posted:~2% ERs AND a 1% load across the board. Ok, now I'm going to let you in on a little bit of my madness. Probably better for the newbie finance thread, but I don't have a spending problem. I have a not spending problem. So I am definitely maxing my IRA, I've had that for 2 1/2 years and that is always my first priority, I read this thread every day! I don't max it at the beginning of the year, I make the monthly contribution to get the most out of dollar cost averaging. My 401k I started exactly 1 year ago, by putting 85% of my pay into it to start making up for many years of being a lazy poo poo and not having a job. My reasoning was that back then I had about $25000 in savings and by living on savings for a little bit while the contribution was so high I was really converting those savings into 401k money. Oh I'm 31 for perspective :\ I have since tapered that after the hurricane last year, so really only 3 months at 85%, now i've scaled back to 20% contribution in the 401k. I have my emergency fund covered. $18000 in checking ($5000) and savings (13). I have another 10,000 in i-bonds. $3000 still left in laddered 1yr CD's which will end in 3 years. $14,000 in taxable brokerage. 10 split 65-35 into ITOT and IXUS since I can trade commission free. another $1500 earmarked for AGG but I'm afraid to jump into bond funds now (I know i shouldn't be timing the market). The other 4 is long in some poorly diversified stocks; AAPL, IBM, VMW, F. I do plan on closing those out when I hit my stops and go complete passive investing. I COULD move out and I do want to, but I live on LI and work in NYC... not exactly cheap. I've looked at it from every way possible, but even if I drastically change my life and live even more frugally than I do now I wouldn't be able to contribute anything towards anything; I would be living paycheck to paycheck and I'm not OK with sacrificing my ability to save for my future just so I can move out. I see how people my age making similar to what I do live and they're going to be working until the day they die. My parents have no problem with me living at home, they understand completely how lovely it is for everyone now especially young people in this job market. My plan, which is looking more and more like a pipe dream, is to just save save save. When my parents decide to retire and move, I plan on moving down south with them (not an apron strings thing, I genuinely love Charleston, SC and want to make it my home someday), and buying a nice little house and live with a much lower cost of living. My job is with the top name company in the industry we're in and when I do move my resume should be able to command a very respectable salary when I look for work down there. I'm only looking to make sure my future is secure. I'm not planning on a family; no one wants to date George Costanza (I have more hair though, for now). That's a pretty complete picture of my finances. Maybe I SHOULD cross post this in the finance thread, but really the thing that's weighing on my mind the most is my lovely 401k choices and how I can rebalance across my retirement accounts to make it suck less donkey dick. SeaWolf fucked around with this message at 14:13 on Aug 30, 2013 |
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Aug 30, 2013 01:18
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Sounds like you might be leaving your employer in the not too distant future. I'd continue to dump into the 401k after the IRA max because when you do leave you can roll it over to Vanguard. You'll never have an opportunity to go back an contribute to a tax advantaged account for past years so I think its worth it despite those MISERABLE fund options.
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Aug 30, 2013 04:36
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kansas posted:Sounds like you might be leaving your employer in the not too distant future. I'd continue to dump into the 401k after the IRA max because when you do leave you can roll it over to Vanguard. You'll never have an opportunity to go back an contribute to a tax advantaged account for past years so I think its worth it despite those MISERABLE fund options. You're right, and I actually left that out. When I originally started contributing if you read my post history, I'm not a fan of my employer because it's going to kill me. So I was going to pump up the 401k as much as I could to get it rolled over into my IRA, but well... things change and I'm stuck here and despite how much I want to leave I need something else lined up first and that hasn't worked out. So here I am realizing I'm putting money into a black hole, and now I need to salvage what's already in the pit to to protect myself from the built in losses.
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Aug 30, 2013 14:10
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SeaWolf posted:Ok, now I'm going to let you in on a little bit of my madness. Probably better for the newbie finance thread, but I don't have a spending problem. I have a not spending problem. First off congrats for being fiscally responsible, and saving for the future. I know it sounds like a long shot but have you talked to your company about 401k plan option fees? After all EVERY employee is paying way more in fees than they should including the HR and Execs. Doing a little write-up/analysis that shows hot much money is being wasted might get them to add in a low cost index fund option or two. As far as longer term planning are you thinking about the money needed for a house down payment ? Though your savings, and a 401k loan would probably take care of that. The 18k in checking also isn't doing much but given how rates are so low there isn't much yield to be had. Perhaps, cd's or some higher quality cumulative preferred stocks if you have a bit more risk tolerance.
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Aug 30, 2013 14:49
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SeaWolf posted:You're right, and I actually left that out. When I originally started contributing if you read my post history, I'm not a fan of my employer because it's going to kill me. So I was going to pump up the 401k as much as I could to get it rolled over into my IRA, but well... things change and I'm stuck here and despite how much I want to leave I need something else lined up first and that hasn't worked out. So here I am realizing I'm putting money into a black hole, and now I need to salvage what's already in the pit to to protect myself from the built in losses. Even if it takes you a few years to get out of that situation, that's actually even more reason to not miss contribution opportunities.
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Aug 30, 2013 15:01
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Some very good advice from you guys. Thanks! I'm actually going to move this over to the newbie finance thread because now I want to get their input as well. Follow me over there, I'ma link my posts from here and quote y'all when in that thread so I can hit the ground running. But, let's go back to my original question, and let's pretend I never mentioned any of my other accounts. Between those funds I listed in my 401k and my Vanguard, is there any combination of funds I can re-allocate to be less butt-rapey? I guess I know the answer; no, sit on cash and you lose 3% of the principle/yr or chase yield in those lovely funds and I'm taking on a lot more risk than I should just to break even in a very volatile and uncertain market.
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Aug 30, 2013 15:40
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So I was looking at the vanguard website to open a Roth IRA. I'm a little confused at all the plans. If I want to be pretty passive will picking, lets say the Retirement 2045 option be a good choice or is there something else I should be looking at?
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Aug 30, 2013 16:55
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The Vanguard Target funds are the top picks among the goons in this thread! I'm doing that with the 2050. Just set my monthly contribution and I don't worry for the next 30 years! (I'm Woody Allen levels of neurotic, so that's a lie.)
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Aug 30, 2013 16:59
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Been browsing this section for a bit, and it's been extremely useful. However, I'm still a moron at much of this, and at kind of a loss as to what I should focus on right now. I am pleased with my pension program, but would like to increase my safety net. While our pension is in theory secure due to the way it's funded, (unlike some other public employee systems), I think it's better to have some overage just in case. Any guidance, tips, suggestions, etc are much appreciated. Background: 34 year old male. Plan to retire at 60 years of age. With current employer for just under 14 years, (no plans to leave either). Yearly gross of 37630. Mandatory 7% of salary deposted into our pension system ( https://www.tcdrs.org/Pages/Home.aspx ). Employer matches 225%, and we have 7% yearly compounded interest. We also have access to a Deferred Comp/457 plan managed through GreatWest ( https://www.gwrs.com/login.do ). I currently contribute $200 per month. 77% goes into T.Rowe Price 2030 Fund 23% goes into Lazard Emerging Markets Equity Instl Current balance is $10,573 Assuming I stick with my goal of retiring at 60yoa, and figuring zero salary increases, my pension would provide the following: Personal Account Balance: $394,238 Employer Matching of: $887,035 Total Account Balance: $1,281,273 Monthly Lifetime Benefit: $9,938 The original goal of my 457 was to provide a litle extra during the first few years of retirement. In a perfect world, some version of social security will still be around, and the 457 payments would cover that difference from retirement until I could draw it. Assuming there is nothing at all, then the 457 payments would simply give me a few years of extra play money while I make the transition into being retired. I do not have the option of putting more into my pension plan, so was thinking about increasing and/or modifying my 457 investments. (Note - I am not in a position to max an IRA, and definately not in a position to max my 457). I could also look into a Roth, but since my tax bracket will actually go up during retirement from the pension income alone, I can't see a strong reason not to just stick with my 457. Since I am more than happy with my pension, I do not mind getting more aggressive. While I could simply increase my existing Lazard, I wonder if I should look into something else? I have kept the 2030 fund since I'm eligible to retire in 2027, but I think staying so safe may be hurting me in the long run? The options I have in my 457 are below - T. Rowe Price Retirement 2010 Fund Asset Allocation TRRAX T. Rowe Price Retirement 2015 Fund Asset Allocation TRRGX T. Rowe Price Retirement 2020 Fund Asset Allocation TRRBX T. Rowe Price Retirement 2025 Fund Asset Allocation TRRHX T. Rowe Price Retirement 2030 Fund Asset Allocation TRRCX T. Rowe Price Retirement 2035 Fund Asset Allocation TRRJX T. Rowe Price Retirement 2040 Fund Asset Allocation TRRDX T. Rowe Price Retirement 2045 Fund Asset Allocation TRRKX T. Rowe Price Retirement 2050 Fund Asset Allocation TRRMX T. Rowe Price Retirement 2055 Fund Asset Allocation TRRNX T. Rowe Price Retirement Income Fund Asset Allocation TRRIX American Funds Capital World G/I R4 International RWIEX American Funds EuroPacific Gr R4 International REREX Lazard Emerging Markets Equity Instl International LZEMX Nuveen Real Estate Securities I Specialty FARCX AllianzGI NFJ Small-Cap Value A Small Cap PCVAX BlackRock Russell 2000 Index Coll F Small Cap Hartford Small Company R4 Small Cap IHSSX BlackRock Mid Cap Index - Collective F Mid Cap Hotchkis and Wiley Mid-Cap Value I Mid Cap HWMIX Munder Mid Cap Core Growth Y Mid Cap MGOYX Fidelity Contrafund Large Cap FCNTX JPMorgan Equity Income Select Large Cap HLIEX Vanguard 500 Index Signal Large Cap VIFSX Metropolitan West High Yield Bond M Bond MWHYX Oppenheimer International Bond Fund A Bond OIBAX PIMCO Total Return Fund - Admin Bond PTRAX Vanguard Total Bond Market Index Inv Bond VBMFX Nationwide Fixed Fund Fixed Putnam Stable Value Fund Fixed
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Aug 30, 2013 17:32
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B-Mac posted:So I was looking at the vanguard website to open a Roth IRA. I'm a little confused at all the plans. If I want to be pretty passive will picking, lets say the Retirement 2045 option be a good choice or is there something else I should be looking at? Vanguard's target funds are great, as I think the expense ratio is exactly the same as you'd get putting your money in the individual funds it makes up. The only exception to this is that if you have more than $50,000 or so, you'd probably be able to put money into their Admiral shares (which have high minimums but lower expense ratios), whereas there are no admiral shares for the target funds. The expenses are so low already though, that the difference is pretty negligible, so I wouldn't worry about it. If you're a hands-off investor, you'd probably do more damage by forgetting to rebalance than you'd save with admiral shares anyways.
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Aug 30, 2013 17:39
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Not sure if this is the right thread for this, but what would be a good place to dump ~$50K for a year or 2 and obtain fairly safe returns? I'm looking to avoid stocks and index funds.
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Aug 31, 2013 13:52
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