Alex
Full time employment: Posting here.
- Joined
- May 29, 2006
- Messages
- 696
Hey everyone! After ten years with the same company, I am changing jobs! So, in the next 30 days I have the opportunity to roll over my (high cost) 401K into an IRA at Vanguard!!! All of my taxable investments have been with Vanguard since 1990 (when I wisely bought the 500 index) so I am reluctant to tinker too much with the taxable side due to tax considerations. But I will have some flexibility on the tax deferred side once the rollover to Vanguard is complete. I have winnowed the number of funds I need to own, down to 7 or 8 from the 16 that I currently own. (yes, I am finally ready to part with the Health care fund and my favorite pet fund 'global equity'..lol)
PS- In the future 90% of my investments will be going to the taxable side. Because the new job doesn't have a 401k plan (instead they'll be nearly doubling my pay!), I will be adding CA IT Muni bonds to the taxable account or (I- bonds depending on the rate) as needed to maintain proper bond allocation. I will continue to add the maximum to my and my wifes IRA's (both are non deductible). The idea is to convert these non-deductible IRA's to Roths in 2010.
I am 44 years old and have an overall AA plan of 60% (stock) / 30% (bond) / 10% (cash). I also want to have close to 65% USA and 35% International for my equity portion. Here is what I am proposing:
OPTION 1
Tax Deferred accts: 40% of assets
20% total bond index (VBMFX)
10% TIPS fund (VIPSX)
10% Mid cap index (VIMSX)
Taxable accts: 60% of assets
22% FTSE ex-USA (VFWIX)
20% 500 Index (VFINX)
8% Tax managed small cap (VTMSX)
10% CA tax free Money Market (VCTXX)
OPTION 2:
Tax Deferred accts: 40% of assets
10% ST bond index (VBISX)
10% IT bond Index (VBIIX)
10% TIPS fund (VIPSX)
5% Mid cap index (VIMSX)
5% REIT index (VGSIX)
Taxable accts: 60% of assets
22% FTSE ex-USA (VFWIX)
20% 500 Index (VFINX)
8% Tax managed small cap (VTMSX)
10% CA tax free Money Market (VCTXX)
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So, the big question is - Which option would you go with? How would you change things around? Any suggestions for improvement? Any advice would be greatly appreciated. Thank you all in advance for your help!!!
PS- In the future 90% of my investments will be going to the taxable side. Because the new job doesn't have a 401k plan (instead they'll be nearly doubling my pay!), I will be adding CA IT Muni bonds to the taxable account or (I- bonds depending on the rate) as needed to maintain proper bond allocation. I will continue to add the maximum to my and my wifes IRA's (both are non deductible). The idea is to convert these non-deductible IRA's to Roths in 2010.
I am 44 years old and have an overall AA plan of 60% (stock) / 30% (bond) / 10% (cash). I also want to have close to 65% USA and 35% International for my equity portion. Here is what I am proposing:
OPTION 1
Tax Deferred accts: 40% of assets
20% total bond index (VBMFX)
10% TIPS fund (VIPSX)
10% Mid cap index (VIMSX)
Taxable accts: 60% of assets
22% FTSE ex-USA (VFWIX)
20% 500 Index (VFINX)
8% Tax managed small cap (VTMSX)
10% CA tax free Money Market (VCTXX)
OPTION 2:
Tax Deferred accts: 40% of assets
10% ST bond index (VBISX)
10% IT bond Index (VBIIX)
10% TIPS fund (VIPSX)
5% Mid cap index (VIMSX)
5% REIT index (VGSIX)
Taxable accts: 60% of assets
22% FTSE ex-USA (VFWIX)
20% 500 Index (VFINX)
8% Tax managed small cap (VTMSX)
10% CA tax free Money Market (VCTXX)
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So, the big question is - Which option would you go with? How would you change things around? Any suggestions for improvement? Any advice would be greatly appreciated. Thank you all in advance for your help!!!