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Ok Investing Gurus I need a little more help. Everything is with Vanguard inherited IRA=68,500$ roughly still waiting for some things to settle Roth IRA= 11,400 and I will be adding 5,500 more in January Another IRA= 4,700$ I was just going to put everything in a target date fund but the more i think about it the less I want to do that. I've begun reading and learning more about investing but still have a long way to go. I guess what I'd like some help with for now is proper allocation of these funds so that when it comes time to re balance i will have had more time to learn. I'm still pretty young and not to concerned with market turmoil so I was going to avoid bonds all together. I was thinking all stocks Large/Mid/Small with some international preferably. I was also going to shoot for the admiral funds since i should be able to meet the minimum required. I just have no idea how I should distribute the money % wise or what funds to buy exactly, some of the vanguard funds seem very similar and i don't know which ones are better. Again thanks in advance for any and all help, you guys are great.
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Nov 18, 2016 15:07
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chorking posted:I'm still pretty young and not to concerned with market turmoil so I was going to avoid bonds all together. I was thinking all stocks Large/Mid/Small with some international preferably. I was also going to shoot for the admiral funds since i should be able to meet the minimum required. I just have no idea how I should distribute the money % wise or what funds to buy exactly, some of the vanguard funds seem very similar and i don't know which ones are better. Again thanks in advance for any and all help, you guys are great. You really don't have enough money before the inheritance to be able to do much about optimizing asset allocation because you barely meet the fund minimums for better expense ratios. I'd keep the Roth in what you have (or VTSAX if not in a suitable investment). Once you get that money though, here's what I'd do: Roth IRA (~$17k): $17k in VTSAX Traditional IRA (~$73k): $33k in VTSAX, $25k in VTIAX, and $15k in VSMAX Overall holdings ($90k): $50k VTSAX (Most publically traded stocks in US including small and medium cap) $25k VTIAX (Most publically traded large cap international stocks including emerging markets) $15k VSMAX (US small cap index) What does this get you? It's an all-stock portfolio with an 72/28 US/Intl split and a small cap emphasis because small caps have traditionally outperformed and it's a little dip into a more complex asset allocation for you. If later on you want to emphasize or balance other factors like value vs. growth, add diversifying elements like bonds, REITs, or precious metals, it shouldn't be too difficult. It's also fairly similar to a 2060 target retirement fund without bonds and with the added small cap emphasis.
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Nov 18, 2016 15:25
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baquerd posted:You really don't have enough money before the inheritance to be able to do much about optimizing asset allocation because you barely meet the fund minimums for better expense ratios. I'd keep the Roth in what you have (or VTSAX if not in a suitable investment). Forgive my ignorance. Since I only have 4,700 in the traditional ira do i need to have 10k to buy the admiral shares or since I bought that fund with the inherited IRA the other money will piggyback onto that? I hope that made any sense
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Nov 18, 2016 15:57
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chorking posted:Forgive my ignorance. Since I only have 4,700 in the traditional ira do i need to have 10k to buy the admiral shares or since I bought that fund with the inherited IRA the other money will piggyback onto that? I hope that made any sense You'll probably just want to roll the inherited IRA into your existing one. You need the 10k in one account to take advantage of the admiral shares.
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Nov 18, 2016 21:27
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baquerd posted:You'll probably just want to roll the inherited IRA into your existing one. You need the 10k in one account to take advantage of the admiral shares. I don't think I can transfer an inherited IRA. I have to take a RMD each year. I think it's stuck the way it is
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Nov 18, 2016 22:35
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A this point, is there much of a realistic difference between investing in VFIAX instead of VTSAX? Would there be a reason to invest in both?
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Nov 18, 2016 23:19
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VFIAX is all large cap while VTSAX is the total market (small, mid, and large). Even though they generally move similarly, they are not the same. Owning both skews your portfolio more toward large cap, which isn't inherently good nor bad. It's up to you what you want your allocation and holdings to be.
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Nov 19, 2016 00:31
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Guinness posted:VFIAX is all large cap while VTSAX is the total market (small, mid, and large). Even though they generally move similarly, they are not the same. Total stock is the better option since it includes mid and small cap companies.
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Nov 19, 2016 15:05
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I'm reading about I-bonds. They can be redeemed for face value any time after the first 12 months (penalty of 3 months' interest if held less than 5 years). For the purposes of asset allocation, sounds like they can be reckoned as savings accounts?
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Nov 19, 2016 22:19
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I have a 403b account through my employer and pulled everything out of investments and put it in the Stable Value Fund after the US election because of concern that markets would crash. I have just under $67000 to distribute and my options are CBDIX MWTSX VBTIX VIPIX VIXVX VTTVX VTTHX VTIVX VTINX RMFGX TIEIX TISCX VP1 TILIX EKJYX FLMVX VMCIX VP2 TISBX VEXRX TCIEX RERGX DFREX VGSNX When I look at charts, they're all practically the same. Last time I reallocated it was a few years ago and I had 20% in Stable Value and the rest no more than 10% in any one market. Is there anything I should look for in particular or should I just spread it around to minimize risk?
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Nov 21, 2016 06:23
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GWBBQ posted:Is there anything I should look for in particular or should I just spread it around to minimize risk?
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Nov 21, 2016 08:16
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GWBBQ posted:When I look at charts, they're all practically the same. Last time I reallocated it was a few years ago and I had 20% in Stable Value and the rest no more than 10% in any one market. Is there anything I should look for in particular or should I just spread it around to minimize risk? Nobody is going to google all those symbol names. I do recognize some Vanguard target date funds, so I would just do that.
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Nov 21, 2016 08:28
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Someone tell me to not sell VBLTX and cut losses then buy again when things look better 
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Nov 21, 2016 20:09
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MJP posted:Someone tell me to not sell VBLTX and cut losses then buy again when things look better Don't do that.
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Nov 21, 2016 20:14
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Neon Belly posted:Don't do that.
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Nov 21, 2016 20:22
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Stop looking at your retirement fund. Look at it in January when put in your Roth IRA contribution and then stop looking at it again.
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Nov 21, 2016 20:46
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I look at my Roth every month because I'm not far enough ahead to be able to drop 5500 in on January 1st(I should be able to do that starting in 2018  ) but yeah I just kind of gloss over my 401k balance even when I see it in Mint.
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Nov 21, 2016 22:49
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totalnewbie posted:Stop looking at your retirement fund. Look at it in January when put in your Roth IRA contribution and then stop looking at it again. Yeah you should try to time a retirement account.
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Nov 22, 2016 04:35
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MJP posted:Someone tell me to not sell VBLTX and cut losses then buy again when things look better
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Nov 22, 2016 10:14
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So I didn't realize that the tax deduction on a Traditional IRA had a $61k full deduction limit and a $71k partial deduction limit if you're covered by an employer's retirement plan. Here's the whole chain of events for this year:
Is my best option at this point to convert my Trad IRA to a Roth, pay taxes on the capital gains from the interim, and just keep moving forward like that? It doesn't seem like I'm misunderstanding the income limit of Traditional deductions based on what I'm reading on the IRS website. If I convert to a Roth, do I avert dealing with the lack of deduction from the Traditional and end up in the position I ought to probably be in anyway?
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Nov 22, 2016 16:29
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Nail Rat posted:I look at my Roth every month because I'm not far enough ahead to be able to drop 5500 in on January 1st(I should be able to do that starting in 2018
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Nov 22, 2016 17:05
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DACK FAYDEN posted:Can you not set up auto-deposits? I mean, I assume you have enough discipline that you're not doing something dumb just from looking at it, but that's the kind of thing I would look into just to prevent a panic situation. Eh, I don't really like doing auto-anything if I can help it. In the case something comes up (divorce for example is causing me to not make contributions the last few months of this year), I'd rather not have another headache wondering if I remembered to cancel all my auto-deposits. Plus it kind of feels good to do the buy once a month, in a stupid way.
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Nov 22, 2016 17:59
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Hoodwinker posted:So I didn't realize that the tax deduction on a Traditional IRA had a $61k full deduction limit and a $71k partial deduction limit if you're covered by an employer's retirement plan. I'm no accountant, and you might want to talk to one, but you should be able to recharacterize the contributions as non-deductible traditional IRA, or even as direct Roth contributions. This would not be a conversion, and you would not pay penalties because of exceeding the income limit.
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Nov 22, 2016 18:31
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Desuwa posted:I'm no accountant, and you might want to talk to one, but you should be able to recharacterize the contributions as non-deductible traditional IRA, or even as direct Roth contributions. This would not be a conversion, and you would not pay penalties because of exceeding the income limit.
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Nov 22, 2016 18:37
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I've got a question about the Vanguard Admiral index funds. I'm planning on doing the backdoor Roth IRA conversion thing. I just plopped the full $5500 into a trad IRA last month and have now moved it into a Roth IRA account. It's currently just in the default money market fund. I'll be able to drop another $5500 in January. My question is should I just hold the current 5500 in the MM until January and I get over the $10000 to have access to the admiral index funds? Or is it really easy to move that money over in 2 months without getting hit with some sort of fee? Also, I current have all my 401k contribution going into a Fidelity 2050 Target Fund as there wasn't a decent mutual fund or international index fund to make my own mix. This is fine, but should I be doing anything different with my Roth money? I'm willing to spend a little time managing allocations in domestic, MF, and international indexes. But is there anything different with money in a Roth that would take advantage of its specific nature? fenixwb fucked around with this message at 17:14 on Nov 25, 2016 |
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Nov 25, 2016 17:09
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fenixwb posted:I've got a question about the Vanguard Admiral index funds. You can buy Investor shares now, then after you invest another $5500 in January, there should be a button on Vanguard's site that lets you convert everything to Admiral shares.
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Nov 25, 2016 17:16
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I want to track my investment allocation so that I can accurately rebalance. I have a Fidelity 401k, Vanguard IRA, and Vanguard taxable account. Between these, it's very difficult to know off of the top of my head if I'm at 60% domestic / 30% international / 10% bonds, or some other balance, without manually going into each and plugging them into an excel spreadsheet. Mint will capture all 3 accounts but doesn't tell me allocation. Neon Belly mentioned Personal Capital as being a potential solution. Any other advice?
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Nov 28, 2016 21:05
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Blinky2099 posted:I want to track my investment allocation so that I can accurately rebalance. I have a Fidelity 401k, Vanguard IRA, and Vanguard taxable account. Between these, it's very difficult to know off of the top of my head if I'm at 60% domestic / 30% international / 10% bonds, or some other balance, without manually going into each and plugging them into an excel spreadsheet. Mint will capture all 3 accounts but doesn't tell me allocation. Neon Belly mentioned Personal Capital as being a potential solution. Any other advice? PC will do this but will also spam the holy hell out of you. Google Sheets lets you pull down quotes and as long as you pick funds that are just domestic/international/bonds, it's pretty easy to whip something up that tells you what your current allocation is. You just have to update it whenever you purchase more/automatically reinvest, which isn't a big deal. vvv - Google Sheets also lets you pull down the ER automatically for mutual funds monster on a stick fucked around with this message at 21:11 on Nov 28, 2016 |
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Nov 28, 2016 21:07
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I wrote a little matlab that will also tell me how to rebalance and what my overall weighted expense ratio is but that might be a little bit overkill...
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Nov 28, 2016 21:10
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monster on a stick posted:PC will do this but will also spam the holy hell out of you. Google Sheets lets you pull down quotes and as long as you pick funds that are just domestic/international/bonds, it's pretty easy to whip something up that tells you what your current allocation is. You just have to update it whenever you purchase more/automatically reinvest, which isn't a big deal. I don't really see the difference between having to update dollar values or number of shares. I guess it might make a difference if you didn't buy more shares over the interval, but that is never true for me. I use Personal Capital and while they did initially spam me with phone calls after I politely told them to stop calling they did so. asur fucked around with this message at 22:07 on Nov 28, 2016 |
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Nov 28, 2016 22:05
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How are you guys doing it in google sheets / matlab? You have it actually logging into your account and then pulling your account worth per investment type..? Or are you just manually entering "this many shares of this type" and then have sheets/matlab pull price data from google or something? Because this: asur posted:I guess it might make a difference if you didn't buy more shares over the interval, but that is never true for me is the difficult part, I'll have to keep manually going into my accounts and updating the spreadsheet based on how many shares I now have after adding to my taxable account / 401k every paycheck at the beginning of next year. I can do it, it's just additional time I'd rather not bother spending. The reason this comes up is because I downloaded a Financial Independence spreadsheet and he seemed to have each account assigned to one investment type (e.g. IRA was 100% int stock, one 401k was 100% domestic stock, one 401k was 100% bonds, etc.) but I can't really see myself being able to balance very well that way.
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Nov 28, 2016 22:34
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Google Sheets and Excel can pull stock data. If you only want to balance once a quarter, just update the number of total shares for each holding, receive the new values and go from there.
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Nov 29, 2016 21:04
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I have ~$7k in a simple IRA from a previous employer. I now have a 457 thanks to my government job. I'd like to roll the $7k into the 457, but am unsure how it all fits together. At first glance, it appears that the $7k has to be kept in a separate account and I can only do it after two years (https://www.irs.gov/pub/irs-tege/rollover_chart.pdf). I have some questions regarding the process and the best way to do so.
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Nov 30, 2016 15:35
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Looking for advice on how to best invest retirement money after maxing out my 401K and Roth IRA. Specifically for now I am saving money for my mom's retirement if she needs it (not really sure, my sister is supposed to figure that out but....crickets over the last 6 months). Right now I have about $2500 in a Ally savings account. My mom is 60 and I am thinking I have about 10 years until she may need my help. I am saving $300 a month into that account right now (I opened it maybe 4 months ago). I am pretty sure 10 years is long enough to invest in the market instead of getting that sweet sweet 1% interest. All my other retirement investments are with Vanguard. I figure stick with Vanguard. So I guess two questions: Do I just open a taxable investment account (really have no idea here)? Do I just dump it in a 2025 or 2030 target fun and call it a day? What am I missing?
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Dec 1, 2016 01:54
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fenixwb posted:Also, I current have all my 401k contribution going into a Fidelity 2050 Target Fund as there wasn't a decent mutual fund or international index fund to make my own mix. This is fine, but should I be doing anything different with my Roth money? I'm willing to spend a little time managing allocations in domestic, MF, and international indexes. But is there anything different with money in a Roth that would take advantage of its specific nature? I also would like to know about this as I basically do the same thing with my Roth.
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Dec 1, 2016 01:56
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spwrozek posted:Looking for advice on how to best invest retirement money after maxing out my 401K and Roth IRA. Specifically for now I am saving money for my mom's retirement if she needs it (not really sure, my sister is supposed to figure that out but....crickets over the last 6 months). Right now I have about $2500 in a Ally savings account. My mom is 60 and I am thinking I have about 10 years until she may need my help. I am saving $300 a month into that account right now (I opened it maybe 4 months ago). I am pretty sure 10 years is long enough to invest in the market instead of getting that sweet sweet 1% interest. All my other retirement investments are with Vanguard. I figure stick with Vanguard. Yes, you can open up a taxable account. If you are maxing out everything that's really the only vehicle left to you. Depending on your tax rate (I'm guessing your income is good if you are maxing everything out), you might also want to consider one of Vanguard's tax-managed fund-of-funds, like VTMFX which is half stocks-half bonds but uses munis and tries to reduce their holdings in companies that pay out high dividends. spwrozek posted:I also would like to know about this as I basically do the same thing with my Roth. There are two ways to go with the "I have a target date fund in my 401k because it doesn't suck, what do I do with my Roth." The easiest thing by far is to invest your Roth in the same thing - I mean, it can be Vanguard's target date fund but they're going to be close in composition. Fees should still be pretty low. The other way is to micromanage it by saying "I want to have 70% of my money in US stocks, and my 401k 2050 fund is 60% US stocks right now, and I have $10K in that and $5K in my Roth, so that means overall I want $10500 in US stocks (70% of $15k) and since my 401k has $6K in US stocks (60% of $10K) so I want to put $4K of my Roth in a US stock index fund." You can do the math to see if it's worth it but unless you are well into six digits in your accounts, it's a lot more hassle for very little benefit. Buy another 2050 fund and do something else with your life. You can always switch the funds later if you get a job with solid index funds in the 401k in which case you can just do it piecemeal and save $$.
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Dec 1, 2016 02:12
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spwrozek posted:I also would like to know about this as I basically do the same thing with my Roth. Even if I could do Admiral shares, I crunched the numbers between Vanguard's target retirement and a Core Four with Admiral shares, and over 40 years the cost difference due to ER isn't nearly as massive as some other awful retirement funds. I'm probably just going to leave my Roth IRA on target retirement autopilot for a long time. edit: Got my ESPP shares today! I'll unload those tomorrow and that'll be my Roth IRA contribution for 2017 
Star War Sex Parrot fucked around with this message at 02:22 on Dec 1, 2016 |
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Dec 1, 2016 02:15
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Star War Sex Parrot posted:Just crunch the ER numbers to see if it makes sense. In my case, I can't get to all Admiral shares in my Roth IRA yet, so my ER ends up better off with a target retirement fund than if I did something like Core Four with Investor shares myself. I'm not entirely sure how to crunch these numbers, but does this change at all if you're saving money in a taxable account ontop of a Roth IRA and a 401k? I've largely just completely ignored my 401k/Roth except to select target funds and dump money in them. I've gotten a new job which includes a significant raise which will let me max out both my IRA and 401k and start saving in taxable vehicles as well.
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Dec 1, 2016 02:46
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Steampunk Hitler posted:I've gotten a new job which includes a significant raise which will let me max out both my IRA and 401k and start saving in taxable vehicles as well.
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Dec 1, 2016 02:49
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Steampunk Hitler posted:I'm not entirely sure how to crunch these numbers, but does this change at all if you're saving money in a taxable account ontop of a Roth IRA and a 401k? I've largely just completely ignored my 401k/Roth except to select target funds and dump money in them. I've gotten a new job which includes a significant raise which will let me max out both my IRA and 401k and start saving in taxable vehicles as well. It can. For me it's cheaper to buy admiral shares in my taxable/Roth accounts and use sweet institutional index funds in my 401k. My ER is less than half of a Vanguard Target Date fund for a three-fund portfolio and everything is allocated to keep taxes as low as possible (international in taxable for the tax credit, stocks in taxable for the lower qualified dividend rate, bonds in tax-deferred.)
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Dec 1, 2016 02:53
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