Good Investment Company

[cnocmmz]

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!

 

[target2019]

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.

 

[teetee]

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.

 

[MRG]

Only three investment firms offer a no-hack guarantee. I'd use one, or more, of them.

ETA: Fidelity, Schwab, and Vanguard.

 

[jazz4cash]

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.

 

[ziggy29]

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.

 

[stephenson]

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 ...

 

[ziggy29]

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.

 

[stephenson]

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 ....

 

[cnocmmz]

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[emoji106]

 

[cnocmmz]

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]

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]

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 [emoji3]

 

[cnocmmz]

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

 

[OldShooter]

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.

 

[ziggy29]

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/

 

[cnocmmz]

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!

 

[jazz4cash]

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!

 

[cnocmmz]

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.

 

[chassis]

Satisfied Fidelity customer here.

 

[pn3069]

Only three investment firms offer a no-hack guarantee. I'd use one, or more, of them.

ETA: Fidelity, Schwab, and Vanguard.

MRG - Can you tell me more about what no-hack guarantee means please?

 

[Dash man]

We have both Schwab and Fidelity and are pleased with both. If you plan on using them for managing a trust on your passing, check their fees.

 

[cnocmmz]

Satisfied Fidelity customer here.

chassis: Do you know off hand what the Fidelity fees are, is it based on % of what's invested, or flat fee based? I guess average is about .85 to 1 % of investments?
Thanks

 

[38Chevy454]

chassis: Do you know off hand what the Fidelity fees are, is it based on % of what's invested, or flat fee based? I guess average is about .85 to 1 % of investments?
Thanks

Not sure if I understand your question, but here is an answer:
1) There are no standing account fees that are charged by Fidelity for just having an account.
2) You pay whatever the investment fund fees are when you hold that investment. Fidelity has some "zero fee" index funds, that have no cost to you.
3) If you utilize Fidelity Financial Advisor paid services, it will be whatever that advisory service fee is. That is typically an AUM (Assets Under Mgmt) type fee where you pay some percentage of the total account, as in the 0.85-1.0% fee you listed above.

 

[Lawrencewendall]

Been with Fido 15+ years. Pleased as punch.