Asset Allocation

[rpow53]

My wife pulled most of her money in her 401k rollover a couple of months ago because of the health care debockle. Now she wants to put it back in slowly. I am looking for a good site to help her with asset allocation. This is money she will not need for at least 10 to 15 yrs. I am telling her to look at index funds. easy and fees are not too much.History: we are 57, retired, state pension will take ss when we get 62, extra money comes from saving about 10k/yr., we live on about 50k/yr., house paid for & no debt.
Any help is good. Thanks

 

[LOL!]

Do you want a "site" or do you want a "book"?

Best site: Bogleheads Investing Advice and Info
Best books are listed at the best site.

 

[rescueme]

I found this to be a good book on AA's:

Amazon.com: All About Asset Allocation (9780071429580): Richard Ferri: Books

Check to see if you can get it at your local libarary to review.

 

[IndependentlyPoor]

My wife pulled most of her money in her 401k rollover a couple of months ago because of the health care debockle. Now she wants to put it back in slowly.

As I write this, the DOW is at 10,975. Who wudda thunk it? Certainly not I. If the old aphorism "the market hates uncertainty" was ever true, the market should have swooned, for little is more uncertain than a massive change in the entire health care system. That, and the prospect of ballooning federal debt, and yet the market booms.

 

[donheff]

As I write this, the DOW is at 10,975. Who wudda thunk it? Certainly not I. If the old aphorism "the market hates uncertainty" was ever true, the market should have swooned, for little is more uncertain than a massive change in the entire health care system. That, and the prospect of ballooning federal debt, and yet the market booms.

Except the health care proposal was never that big a deal from a market perspective. It just boosts proceeds for insurers. If the proposal was single payer - that would be a major uncertainty.

 

[rpow53]

with so much happening what is a person to think. even the pros are giving conflicting reports. I am thinking just a good mix of index funds and hope for the best! Thanks for the replies.

 

[freebird5825]

These types of pie charts abound in the literature. Here is an example of AA recommendations for various projected retirement years.

http://news.morningstar.com/pdfs/benzerrorproofportfolio04052010.pdf

One of the contributing authors at Morningstar seems to be hosting a week of AA articles. Here is the first:
http://news.morningstar.com/articlenet/article.aspx?id=331240#page=0&part=2

 

[taemoo]

I am looking for a good site to help her with asset allocation.

Shouldn't both of your asset allocation be viewed as one instead of separate?

 

[bbbamI]

These types of pie......

Key lime is my favorite.

Oh...and I've been taking a few profits lately and shifting them to a stable value fund.

 

[Dawg52]

Key lime is my favorite.

Oh...and I've been taking a few profits lately and shifting them to a stable value fund.

I just bought a Key lime pie. On sale, couldn't pass it up. There goes the diet. Looking like you are a dirty market timer.

 

[freebird5825]

Key lime is my favorite.

Oh...and I've been taking a few profits lately and shifting them to a stable value fund.

I just bought a Key lime pie. On sale, couldn't pass it up. There goes the diet. Looking like you are a dirty market timer.

You two are NOT helping my "diet".
I'm a purist - I don't eat key lime pie unless I am down south. I had this piece of KL pie in Tampa that was to die for. I'll be seeking out the real deal again in 2 weeks.
I like to put whipped cream over top of key lime yogurt, though.
End of threadjack...

 

[bbbamI]

I just bought a Key lime pie. On sale, couldn't pass it up.

Ooooooh...is it Marie Callender's?

Looking like you are a dirty market timer.

Ummm, hmmm...a woman has to get gritty every once in a while...

 

[Dawg52]

You two are NOT helping my "diet".
I'm a purist - I don't eat key lime pie unless I am down south.

I think Mississippi qualifies.

Ooooooh...is it Marie Callender's?

Edwards. Not restaurant quality but will do in a pinch.

 

[friar1610]

If I understand your post correctly, your wife NEEDS to get that money back into a "qualified plan" ASAP of you will have a big tax bill. If she took it out at age 57 I believe she will be subject to not only income tax but also a penalty for taking it out early. Whatever she wants to invest it in, she should put it back into an IRA rollover right away. (That would be considered another "rollover" not a withdrawal if she does it within (i forget) 60 or 90 days. She can put it in a MM fund within the rollover iRA and decide later specifically how to invest it.

I hope I am wrong on this, but a few years ago I took money out of 401K's so I could pay cash for a new house. I had a limited time to get the money back into a qualified retirement plan or I would have faced big consequences.

I hope I am misreading your situation and you are not facing that.

 

[rpow53]

If I understand your post correctly, your wife NEEDS to get that money back into a "qualified plan" ASAP of you will have a big tax bill. If she took it out at age 57 I believe she will be subject to not only income tax but also a penalty for taking it out early. Whatever she wants to invest it in, she should put it back into an IRA rollover right away. (That would be considered another "rollover" not a withdrawal if she does it within (i forget) 60 or 90 days. She can put it in a MM fund within the rollover iRA and decide later specifically how to invest it.

I hope I am wrong on this, but a few years ago I took money out of 401K's so I could pay cash for a new house. I had a limited time to get the money back into a qualified retirement plan or I would have faced big consequences.

I hope I am misreading your situation and you are not facing that.[/Q

Thanks for the reply. no she did not take her money out , she put it in a mm. we treat her rollover seperate from mine because we live on different money accounts. hers is long term, 15yrs., we don't need it now and have enough to do us for a while unless we are TAXED to death.