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Four years ago I rolled my cashed out pension and 401k to an IRA account managed by a local firm in Seattle. I pay a management fee just under 1%. I chose a conservative allocation 50% equities (actual stocks, not mutual funds) and 50% bonds/cash. My goal was to protect the balance with some growth to protect against inflation. I've read all the opinions about keeping expenses low and not paying someone to manage your money. However, the money rolled into this account represented a 28 year career and I didn't feel comfortable managing it myself. Fast forward to today. I just finished a 2 year term with my former employer and am now unemployed (it's okay...part of my plan). However, with the dreadful economic situation and the impact to my IRA, I'm reconsidering paying the 1%. It hurts to pay a fee while you see your balance decline. I reached out to Vanguard last month and they offered two options: A managed account (at about the same fee I'm paying today) or an unmanaged account (just the expense of the funds). I've read most of the books recommended on this site, but I'm still feeling uncomfortable with managing the account myself. I have the same basic goal with more of an emphasis on protecting my nest egg now that I'm unemployed. I turn 51 this month, so I'm thinking about moving my IRA to the Vanguard Wellesley Fund. Here is a snapshot of our financial situation.
My IRA: $950k
DH 401k: $200k
CDs & Savings: $65k
Mortgage: $219K (home valued at approx. $300k)
Retirement Home paid for and valued at $550k
No other debts
My husband's job is secure (post office), however our income has decreased about 60% with me unemployed (I'm working on starting my own personal training business and do expect a small income to help pay utility and grocery expenses). We plan to sell the home with the mortgage as soon as the market improves.
I'm curious if moving the IRA to Wellesley and leaving everything else as it is today provides adequate asset allocation?
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