Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Hi, I'm Karen...
Old 01-13-2014, 01:25 PM   #1
Dryer sheet aficionado
Join Date: Nov 2013
Posts: 41
Hi, I'm Karen...

And I'm new to the forum and I came upon this great site about a year ago. I retired 11 days ago after having a 'come to Jesus' lecture by friends and family, the result of which was that I gave only 2 weeks retirement notice to my (very difficult boss). Although I still feel a bit guilty about the 2-week notice, decided that my loyalty to the job (I was an Assistant Director) was not worth any more nightmares or health issues. In addition to my military pension, I have plenty of saving in IRAs, mutual funds as well as steady income from a small rental cottage at the back of my property. I have about half of my IRA money with my former employer in a Vanguard account and the other half in an account with USAA. the USAA account is actively managed at 6-tenths of a percent and is in a balanced (50-50) portfolio. The Vanguard account is not actively managed and is in a 80% stock-20% bond mix. I can easily live off my pension and rental income and either not touch, or only touch 1-2% of my Vanguard/USAA savings (I also have emergency funds in cash, I-bonds and CDs). Am I foolish to pay USAA 6-tenths% to manage half of my total mutual fund savings? I am not particularly interested in spending a lot of brain-power on investing and like not having to worry/monitor my account. My though is that with half of my savings in a balanced, managed account at USAA that I can afford to be more aggressive with the un-managed (except for an annual re-balancing by me) account at Vanguard. Appreciate your thoughts on the matter!

Sanbenito1 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-13-2014, 02:28 PM   #2
Recycles dryer sheets
racy's Avatar
Join Date: May 2007
Posts: 412
Hi Karen,
Welcome! And stop feeling guilty over a 2-wk notice: that's standard protocol. As to your question, a 0.6% ER isn't much for half your portfolio. Assuming your Vanguard ERs are around 0.1%, your weighted average is 0.35%...that's not bad. So, I wouldn't call it foolish.

But I gotta say, since you're already planning to re-balance 50% of your portfolio, it wouldn't take any more 'brain-power' to do it all ... and save several thousand dollars a year.

The Big Lebowski: Are you employed, sir?
The Dude: Employed?
racy is offline   Reply With Quote
Old 01-13-2014, 03:55 PM   #3
Dryer sheet aficionado
Join Date: Nov 2013
Posts: 41
Thanks Racy, good idea. The Vanguard money is in a 457-type account, which means I can access it now that I am retired (I am 55). The managed USAA money is in a regular IRA (and some is in a non-IRA mutual fund). If I convert the Vanguard money into a regular IRA I will lose my ability to spend it before age 59.5. So it may be best to wait until I am 59.5 when the withdrawal rules are all the same before I put it all in one place and managing it myself.
Sanbenito1 is offline   Reply With Quote
Old 01-13-2014, 05:24 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 13,202
You might consider transitioning everything to Vanguard. You would probably pay lower fees and they would also do a financial plan for you at low or no cost and make investment recommendations to you.

I would keep the 457 account to preserve your ability to make penalty free withdrawals unless you are really sure you won't need to do any withdrawals from tax-deferred accounts for the next 4-5 years.
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
pb4uski is offline   Reply With Quote
Old 01-13-2014, 05:33 PM   #5
Thinks s/he gets paid by the post
Ready's Avatar
Join Date: Mar 2013
Location: Southern California
Posts: 1,248
Welcome to the forum Karen. I'll defer to others on the advice, but just wanted to say congratulations on your retirement! I know what it's like to have a difficult boss, and I also know how pleasant it is to get rid of one!

Now go and enjoy your newfound freedom! And stop feeling guilty.
Ready is offline   Reply With Quote
Old 01-16-2014, 10:32 AM   #6
Dryer sheet aficionado
Join Date: Nov 2013
Posts: 41
Thanks everyone! Off to enjoy my retirement now!

Sanbenito1 is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


All times are GMT -6. The time now is 10:53 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.