Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Good Investment Company
Old 11-26-2020, 07:29 AM   #1
Recycles dryer sheets
 
Join Date: Jan 2015
Posts: 302
Good Investment Company

Good day all. I have been impressed over the years on how the folks on this site have really done so well.
Okay, I am 60, and my DW is 66 (she is retired )and I am getting ready to pull the trigger here in 2021 after a few years of OMY syndrome. Hopefully once the vaccines start getting shipped to doctors etc and the country can open up again we can travel lol.
In any case, I need to move two 401ks, I.e. a Traditional TSP, and my DW prudential work 401k. I guess it is about 950k give or take. I was thinking either a Vanguard or Fidelity account?
Then, I guess I need to consider what kind of investments to roll it over too, some sort of lifecycle 65-35 (more conservative investments?
My TSP has really low fee although options are not great. We both have good pensions and she is now getting her full SS and medical is taken take of. Our pensions and her SS takes care of all our expenses and much more-so, we will not need the funds right away.
Our concern to obviously keep some growth and be a little more conservative. We also have a few annuities( I most folks here are not a fan of LOL) but, purchased them right after the 08 debacle which will pay out about $1,500 monthly at my age 65. I believe taxes will be an issue in the future with mandatory distributions etc. Again just looking for ideas and suggestions. Thanks so much. Oh, Happy Thanksgiving to All!
cnocmmz 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 Early-Retirement.org 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 11-26-2020, 07:50 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
target2019's Avatar
 
Join Date: Dec 2008
Location: Stuck in the mud somewhere in the NJ swamp
Posts: 6,847
I am partially through transferring two 401(k) accounts to Schwab IRA. I already had accounts there and was happy with customer service over the years.

Most recommend what they are familiar with, and I'd say Fidelity-Schwab-Vanguard are the usual institutions you hear about. The investment choices are similar or exact.
target2019 is offline   Reply With Quote
Old 11-26-2020, 07:53 AM   #3
Recycles dryer sheets
 
Join Date: Jul 2019
Posts: 173
Based on what I know I would go with total stock index with Fidelity. And just let them sit. That way you are already beating over 70% actively managed accounts, enjoy the zero expense ratio, and with zero effort on doing the research.

I would convert as many retirement accounts to Roth to avoid RMD. Do it in stagger fashion to minimize tax liability.

No need to be conservative if you don't need them for your daily expense.

Depending on the health status you may wish consider starting long term care insurance. It is one of those things that should be done early before issues rise and when you need them but don't have them.
teetee is offline   Reply With Quote
Old 11-26-2020, 08:07 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
MRG's Avatar
 
Join Date: Apr 2013
Posts: 9,527
Only three investment firms offer a no-hack guarantee. I'd use one, or more, of them.

ETA: Fidelity, Schwab, and Vanguard.
MRG is offline   Reply With Quote
Old 11-26-2020, 08:34 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 5,591
I wonder why you used the term “need to move” two 401k’s. You can leave them where they are which I would definitely consider for the TSP. They just made some improvements to encourage participants to leave funds in the plan beyond active employment. The withdrawal rules were relaxed. You say the choices are not great but I disagree. They are excellent IMO but limited compared to an IRA. You can get everything you need at rock bottom expense ratio including target date. Target Date Income is especially excellent for low risk. The only reason I might consider leaving TSP is to consolidate DH and DW accounts at one institution if that is very important to you.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is offline   Reply With Quote
Old 11-26-2020, 08:44 AM   #6
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,475
Quote:
Originally Posted by jazz4cash View Post
I wonder why you used the term “need to move” two 401k’s. You can leave them where they are which I would definitely consider for the TSP. They just made some improvements to encourage participants to leave funds in the plan beyond active employment. The withdrawal rules were relaxed.
Another thing about the TSP is that the G fund can't easily be replicated anywhere else. So if one thinks they will want access to the G fund in the future, keep the TSP open. It's the main reason I don't close my TSP and consolidate accounts.

And to echo the others, yeah, pretty much with any of those three (Schwab, Fidelity, Vanguard), it's hard to go wrong.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
ziggy29 is offline   Reply With Quote
Old 11-26-2020, 09:04 AM   #7
Full time employment: Posting here.
 
Join Date: Jul 2009
Posts: 937
I don't think I would be in a big hurry to get out of TSP - timing market is usually a bad idea generally, but market is pretty volatile.

IMO Fidelity does a far better job of being a full service financial/investments company. Again, IMO, they are better at everything than Vanguard. Sometimes not by much, but ...
stephenson is offline   Reply With Quote
Old 11-26-2020, 09:05 AM   #8
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,475
Quote:
Originally Posted by stephenson View Post
IMO Fidelity does a far better job of being a full service financial/investments company. Again, IMO, they are better at everything than Vanguard. Sometimes not by much, but ...
For me, the main question would be whether or not I planned to invest primarily in Vanguard mutual funds. If not, Schwab or Fido would be a better choice as their brokerage side is (or at least was) much better.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
ziggy29 is offline   Reply With Quote
Old 11-26-2020, 09:16 AM   #9
Full time employment: Posting here.
 
Join Date: Jul 2009
Posts: 937
Yeah - IMO again (trying to be careful :-) ... I don't see a reason to base a decision on access to Vanguard mutual funds - Fidelity has something very close and perhaps better in some cases.

To be clear - I have about 1/4 of my assets at Vanguard, but the differences ....
stephenson is offline   Reply With Quote
Old 11-26-2020, 09:28 AM   #10
Recycles dryer sheets
 
Join Date: Jan 2015
Posts: 302
Quote:
Originally Posted by jazz4cash View Post
I wonder why you used the term “need to move” two 401k’s. You can leave them where they are which I would definitely consider for the TSP. They just made some improvements to encourage participants to leave funds in the plan beyond active employment. The withdrawal rules were relaxed. You say the choices are not great but I disagree. They are excellent IMO but limited compared to an IRA. You can get everything you need at rock bottom expense ratio including target date. Target Date Income is especially excellent for low risk. The only reason I might consider leaving TSP is to consolidate DH and DW accounts at one institution if that is very important to you.


Understand your point and yes TSP has come a long way, although in my opinion TSP is okay although I believe I would have better choices and flexibility in a fidelity or vanguard account. Also, just putting things in one place will be convenient. Also have large amount of cash I would consider putting there as well. Thanks I will look more in the TSP options
cnocmmz is offline   Reply With Quote
Old 11-26-2020, 09:29 AM   #11
Recycles dryer sheets
 
Join Date: Jan 2015
Posts: 302
Quote:
Originally Posted by stephenson View Post
I don't think I would be in a big hurry to get out of TSP - timing market is usually a bad idea generally, but market is pretty volatile.



IMO Fidelity does a far better job of being a full service financial/investments company. Again, IMO, they are better at everything than Vanguard. Sometimes not by much, but ...


Makes sense, not in a hurry!
cnocmmz is offline   Reply With Quote
Old 11-26-2020, 09:39 AM   #12
Recycles dryer sheets
 
Join Date: Jan 2015
Posts: 302
Quote:
Originally Posted by teetee View Post
Based on what I know I would go with total stock index with Fidelity. And just let them sit. That way you are already beating over 70% actively managed accounts, enjoy the zero expense ratio, and with zero effort on doing the research.

I would convert as many retirement accounts to Roth to avoid RMD. Do it in stagger fashion to minimize tax liability.

No need to be conservative if you don't need them for your daily expense.

Depending on the health status you may wish consider starting long term care insurance. It is one of those things that should be done early before issues rise and when you need them but don't have them.


Thanks Teetee
-I like the idea of the total stock index or something similar?
-The conversion factor although, I will need the assistance, not sure how to do it and it will most likely over a 5 year period or so.
-WRT LTC, we both have plans we purchased years ago.
Great tips and thank you.
cnocmmz is offline   Reply With Quote
Old 11-26-2020, 09:42 AM   #13
Recycles dryer sheets
 
Join Date: Jan 2015
Posts: 302
Quote:
Originally Posted by stephenson View Post
I don't think I would be in a big hurry to get out of TSP - timing market is usually a bad idea generally, but market is pretty volatile.



IMO Fidelity does a far better job of being a full service financial/investments company. Again, IMO, they are better at everything than Vanguard. Sometimes not by much, but ...


Thanks, great input
cnocmmz is offline   Reply With Quote
Old 11-26-2020, 09:48 AM   #14
Recycles dryer sheets
 
Join Date: Jan 2015
Posts: 302
[QUOTE=ziggy29;2517386]Another thing about the TSP is that the G fund can't easily be replicated anywhere else. So if one thinks they will want access to the G fund in the future, keep the TSP open. It's the main reason I don't close my TSP and consolidate accounts.

And to echo the others, yeah, pretty much with any of those three (Schwab, Fidelity, Vanguard), it's hard to go wrong.[/

Can you expand on the C fund statement, not sure understand? I do not have any funds in C, although I guess I could transfer?
Thanks
cnocmmz is offline   Reply With Quote
Old 11-26-2020, 09:54 AM   #15
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 6,049
IMO the big three are similar except in details. If you have local offices of Fido or Schwab you may consider that to be an advantage over VG. I see my Schwab guy maybe once in three years but I still like having the option.

Mutual funds availability is very similar among them. Assuming you are a long term investor (you are, aren't you?), presence or absence of small transaction fees should be a don't-care.

Both Fido and Schwab have $ thresholds above which you get a rep assigned to be "your guy." You should ask about this; IMO it is an advantage. If you will have a rep assigned, talk to the branch manager about what kind of a person you want. Young/old, sex, experience level, investment interests, etc. and ask to interview a couple of candidates. The right fit here is probably more important than the sign over the office door.

I disagree that any of the three is "far better at everything." It is such a competitive market that the companies are constantly trying to keep this from happening and I think they are quire successful.
__________________
Ignoramus et ignorabimus
OldShooter is offline   Reply With Quote
Old 11-26-2020, 10:00 AM   #16
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,475
Quote:
Originally Posted by cnocmmz View Post
Can you expand on the C fund statement, not sure understand? I do not have any funds in C, although I guess I could transfer?
Thanks
The G fund, not the C fund. (The C fund is the US stock fund.) The G fund is a government securities fund that is price-stable, like a money market fund, but with higher yields that are generally not available for super-safe cash equivalents elsewhere. For the most part, it has the yield of a short term bond fund but without the volatility of share price. There's really other no mutual fund or ETF out there that combines higher yield with zero volatility.

Even if you don't want to hold cash or cash equivalents in your portfolio *now*, you may at some point in the future, and if you have access to it, there is probably no better parking place for cash than the G fund. Even if you only leave a small TSP balance now, by keeping it open you have the ability to roll over retirement assets into the TSP (and the G fund). If you close your TSP now, there is no going back to it unless you start working for Uncle Sam again.

https://www.tsp.gov/funds-individual/g-fund/
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
ziggy29 is offline   Reply With Quote
Old 11-26-2020, 08:19 PM   #17
Recycles dryer sheets
 
Join Date: Jan 2015
Posts: 302
Quote:
Originally Posted by ziggy29 View Post
The G fund, not the C fund. (The C fund is the US stock fund.) The G fund is a government securities fund that is price-stable, like a money market fund, but with higher yields that are generally not available for super-safe cash equivalents elsewhere. For the most part, it has the yield of a short term bond fund but without the volatility of share price. There's really other no mutual fund or ETF out there that combines higher yield with zero volatility.

Even if you don't want to hold cash or cash equivalents in your portfolio *now*, you may at some point in the future, and if you have access to it, there is probably no better parking place for cash than the G fund. Even if you only leave a small TSP balance now, by keeping it open you have the ability to roll over retirement assets into the TSP (and the G fund). If you close your TSP now, there is no going back to it unless you start working for Uncle Sam again.

https://www.tsp.gov/funds-individual/g-fund/


Ziggy29:
My apologies, yes I meant the G fund. Your analysis and strategy makes sense; however, I would still have to transfer funds over from my C fund. Presently, I have plenty of cash in CD’s that are due to mature around my check out date so I guess I have some decisions to make. Thanks so much!
cnocmmz is offline   Reply With Quote
Old 11-30-2020, 02:45 PM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 5,591
I recall a member recently inquired about rolling funds out of TSP to an outside account and someone replied they should be rolling funds INTO the TSP (which you may be able to do). The G fund in particular is special as noted (and the Life Strategy Income fund that I mentioned is comprised of ~65% G fund). The G fund is currently paying .875% and many of us would love to get that return in a liquid risk free investment but it's nearly impossible to find. You did say you had a lot of cash (but maybe those funds don't qualify). You never answered my question why you used the term "need to move".......Now you seem to be pressed about making decisions because your check-out date is approaching. I'd say take your time to evaluate your options and don't make any moves right away that are not reversible (like transferring everything out of your TSP). Just my .02. Good luck!
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is offline   Reply With Quote
Old 11-30-2020, 02:51 PM   #19
Recycles dryer sheets
 
Join Date: Jan 2015
Posts: 302
Quote:
Originally Posted by jazz4cash View Post
I recall a member recently inquired about rolling funds out of TSP to an outside account and someone replied they should be rolling funds INTO the TSP (which you may be able to do). The G fund in particular is special as noted (and the Life Strategy Income fund that I mentioned is comprised of ~65% G fund). The G fund is currently paying .875% and many of us would love to get that return in a liquid risk free investment but it's nearly impossible to find. You did say you had a lot of cash (but maybe those funds don't qualify). You never answered my question why you used the term "need to move".......Now you seem to be pressed about making decisions because your check-out date is approaching. I'd say take your time to evaluate your options and don't make any moves right away that are not reversible (like transferring everything out of your TSP). Just my .02. Good luck!
Thanks. Yes, wrong term, Not need, wanted to move is more appropriate. The cash I have would not qualify (it is in CD's), I would have to transfer from my C or F fund. If I were to stay w****ing then I could parking money in that "G" fund indeed.
cnocmmz is offline   Reply With Quote
Old 11-30-2020, 08:40 PM   #20
Recycles dryer sheets
 
Join Date: Aug 2020
Posts: 73
Satisfied Fidelity customer here.
chassis is offline   Reply With Quote
Reply


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


Similar Threads
Thread Thread Starter Forum Replies Last Post
Non US resident - now needing Investment Company ! Cortina Other topics 7 05-02-2016 09:17 PM
Is a company's pension fund "separate" from company ? Delawaredave5 FIRE and Money 10 08-05-2013 09:21 AM
Wisdom/Risk of Using 1 Investment Company? Tyro FIRE and Money 24 01-23-2013 08:34 AM
Title Insurance Company - Does it matter which company issue the policy? Disappointed FIRE and Money 6 02-07-2012 12:02 PM
Selling One's House to a Real Estate Investment Company BunsGettingFirm Other topics 8 08-28-2005 09:45 PM

» Quick Links

 
All times are GMT -6. The time now is 04:40 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.