Suggestion on transfer to Vanguard

[ecowtent]

We are moving our funds from an independent investor to Vanguard to take control of our retirement.


Suggestions on how to divide and earn-


We have $70 in a joint account.
10% VCIT
54% Dividend stocks such as Walgreens, J&J & Paychex
35% he left in cash for too long This I want to invest in VTSAX-growth dividends.


Two IRA's similar-
$77K - 33% in cash balance in Lockheed, WM, Gen Mills etc
33% cash to VDIGX growth stocks


$47K -35% cash
Same stocks as above
Cash to VDGIX or VTSAX
$10K additional cash sending to Vanguard- same question. Personal Capital suggests we have too much cash sitting and not enough international. My husband will have a nice sized pension if Illinois doesn't screw it up.




I have a 401K w $350K.
Account Balance by Investment

5.77% AmerFunds EuroPacific Gr Fund

4.00% American Beacon Sm Cap Val Fd

4.03% Eagle Small Cap Growth Fund

8.04% MFS Growth Fund

1.00% Neuberger Berman Mid Cap Gr Fd

1.01% Ridgeworth Mid Cap Val Eq Fd

17.21% Sel MetWest Total Rtrn Bnd Fd

17.94% Vanguard 500 Index Fund

6.02% Vanguard Extended Mrkt Indx Fd

17.24% Vanguard Totl Bnd Mrkt Indx d

4.77% Vanguard Tot Intl Stck Indx Fd

6.01% SAGIC

6.97% TRP Insti Lg Cap Val Fd


Suggestions so appreciated on my plans.

 

[LOL!]

How old are you? How many years to retirement? What is your desired asset allocation, you know, percent of US equities, percent of international, percent of bonds?

I'd always start with broad index funds: Total US, Total International, Total US Bond and go from there.

 

[ecowtent]

So sorry for not adding more details. 49 and 53. Hoping for 7 for me as I have an incurable cancer. Husband 10 years. More stocks and less bonds now- but not sure the right allocation. Ultimately 60 stock and 30 bonds and 10 cash I think.

 

[Senator]

Transfer everything"in kind" if you can, to avoid taxes if it is an after tax account. Otherwise, sell the stuff you need to sell where it is the cheapest.

 

[Another Reader]

In your shoes, I would look at your 401(k) with an eye on expenses vs. performance. You may be better off dumping the high ER funds for the Vanguard index funds. Unless the managed funds are spectacular long term performers, the numbers may favor the index funds.

 

[LOL!]

Ultimately 60 stock and 30 bonds and 10 cash I think.

Then put 60% of your assets in equity funds and 30% in bond funds. I wouldn't suggest 10% cash at all, but just put that in bonds, too., so 40% total in bond funds.

So something like
40% VTSAX Vanguard Total Stock Market Index fund
20% VTIAX Vanguard Total International Stock Index fund
40% VBTLX Vanguard Total Bond Index fund.

Try to have all the bond funds in the IRAs if they are traditional IRAs. That is, the IRAs can each be 100% VBTLX. Put the rest of the needed bond funds in the 401(k).

In taxable put VTSAX. It looks like the 401(k) has the 3 funds you need and can be used for rebalancing. That is, the IRAs don't need any transactions once set up except for contributions to buy the same VBTLX. The taxable only needs occasional tax-loss harvesting. All the rebalancing in the 401(k) will not create any taxes. Such a portfolio would practically take care of itself.

 

[ecowtent]

that's exactly what we want. Let it earn and don't mess with it. Thank you for the suggestions.

 

[LOL!]

that's exactly what we want. Let it earn and don't mess with it. Thank you for the suggestions.

Things don't always "earn"; they often loss money, too.