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Old 10-19-2013, 03:05 AM   #81
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Originally Posted by reubenray View Post
While discussing this with the wife she brought up taxes. I am assuming I would have to pay taxes on the $$ if I draw it out and put it in something else on my own.
If you're talking about selling certain funds and buying others, then yes you would pay capital gains tax if the account is not an IRA or 401k. If it is in a 401k or IRA, then no taxes would be due.

If you are talking about moving between two brokerage companies, then as long as the 401k is rolled into an IRA, no tax would be due.
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Old 10-19-2013, 05:33 PM   #82
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I have dug deeper and the program is called "FundSource".
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Old 10-19-2013, 06:29 PM   #83
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I have dug deeper and the program is called "FundSource".
?? What are you talking about?? The Wells Fargo "here's a mix of funds what we want to sell you" program? If so, it's certainly not worth paying 1% + for that.

You can plunk your money into a single "Target Date" retirement fund at Vanguard and get an asset mix that is just as broad and likely to have returns that are just as good. Or, if you want to understand how this all works, buy the book by William Bernstein called "The Investors Manifesto" (The Investor's Manifesto: Preparing for Prosperity, Armageddon, and Everything in Between: William J. Bernstein, Jonathan Clements: 9781118073766: Amazon.com: Books ), read it, and pick a portfolio from in there. Or any one of the other good books recommended in the FAQ pages here.
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Old 10-19-2013, 06:51 PM   #84
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I have dug deeper and the program is called "FundSource".
Do yourself a favor. Google that name and see what the Morningstar forum says about Fundsource. It's not this forum. I'm not now or ever have been a Vanguard employee. I don't even have an account with them. I do own one of their index funds in my 401k.

Best wishes,

MRG
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Baby Steps!!
Old 10-20-2013, 09:53 AM   #85
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Baby Steps!!

I just wanted to let everyone know I am still looking at my options. I am not one that will jump into anything without doing a ton of research. So I will be taking baby steps. Being my accounts are the only income I have coming in now until my other retirement funds kick in at the first of the year I am hesitant to gamble with that right now.

But I am looking at the accounts my wife has. I am thinking of taking her smallest account and switching to an index fund to see what happens. Her account is 100% invested in ABALX and it has a year-to-date growth of 13.4% which I think is doing pretty good. So I will need some advise on which index fund to look at. Her second account has a year-to-date growth of 9.3% which has a mixture of 6 funds in it.

We will be talking to our FA about cancelling out her FundSource account being it has only a year-to-date growth of 1.2%. I will also see about moving some of my FundSource money to other monthly income funds.
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Old 10-20-2013, 10:20 AM   #86
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Originally Posted by reubenray View Post
I just wanted to let everyone know I am still looking at my options. I am not one that will jump into anything without doing a ton of research. So I will be taking baby steps. Being my accounts are the only income I have coming in now until my other retirement funds kick in at the first of the year I am hesitant to gamble with that right now.

But I am looking at the accounts my wife has. I am thinking of taking her smallest account and switching to an index fund to see what happens. Her account is 100% invested in ABALX and it has a year-to-date growth of 13.4% which I think is doing pretty good. So I will need some advise on which index fund to look at. Her second account has a year-to-date growth of 9.3% which has a mixture of 6 funds in it.

We will be talking to our FA about cancelling out her FundSource account being it has only a year-to-date growth of 1.2%. I will also see about moving some of my FundSource money to other monthly income funds.
You are right to be cautious with these accounts. I strongly recommend you do your research by first reading a few books. They are not "heavy reading", but they are essential in order for you to get a foundation in how asset allocation works. The wrong thing to do (and what I did at first) is to look at recent fund performance and dump funds that are lagging and buy funds that are doing great. It sounds logical, but it is a great way to lose a lot of money. Instead, what many experts recommend is to buy a number of low-cost funds invested in a diverse array of assets --US stocks, foreign stocks, US bonds, maybe foreign bonds, maybe real estate, and some "cash" (actually CDs or money market funds). To gain an understanding of how this has worked over time, you need to read some actual books. Folks here can recommend some others if you don't like the ones I've already suggested. There are also a lot of crummy books out there that will not help you in the slightest.
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Old 10-20-2013, 12:42 PM   #87
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Originally Posted by reubenray View Post
I just wanted to let everyone know I am still looking at my options. I am not one that will jump into anything without doing a ton of research. So I will be taking baby steps. Being my accounts are the only income I have coming in now until my other retirement funds kick in at the first of the year I am hesitant to gamble with that right now.

But I am looking at the accounts my wife has. I am thinking of taking her smallest account and switching to an index fund to see what happens. Her account is 100% invested in ABALX and it has a year-to-date growth of 13.4% which I think is doing pretty good. So I will need some advise on which index fund to look at. Her second account has a year-to-date growth of 9.3% which has a mixture of 6 funds in it.

We will be talking to our FA about cancelling out her FundSource account being it has only a year-to-date growth of 1.2%. I will also see about moving some of my FundSource money to other monthly income funds.
Before you do much of anything, develop your asset allocation plan. You want to know your target stock/bond balance and what kinds of equities and bonds you want to own. While you should be well diversified in both, it seems like you are heavily into income generation. So you'll probably want to lean toward dividend producing equities. That can be a little tougher to set up, to my mind, than using a "total return" approach. You need to find not just good diversified investments, but good diversified investments that also pay good dividends.

ABALX is a perfectly good fund. No need to replace it any time soon, especially if you paid 5.75% to buy it in the first place (see where you may be getting fleeced there?). But until you figure out what your portfolio should look like, you won't know what to replace it with.
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