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Terryjm51 02-19-2017 09:32 PM

Looking for advice 401k
So I am looking to depart my job of 31 years, when I turn 56 this year.
Trowe handles our 401k. I was really happy with our discussion. I also mentioned I have a lump sum from my pension I would roll into this plan. Not once did he mention let's roll it to Ira.
He said since your over 55 you can start withdraws under your plan and stay in the plan. I have 4 vanguard accounts in the plan 2020 @60% mid cap and small cap 5% each and the institutional index fund at 30%. My company will continue to give me a discount while in the plan
My goal is to draw about 1.2% for 3 or 4 years once 59.5 I may roll everything into vanguard. Currently I can not get to a Wellington fund with trowe.
My question should I change my percentages, that I currently have in place. Feels like I am a little to conservative. Been running over 6 % for last few years. Currently at 7.8%
Thanks in advance for your advice

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DrRoy 02-20-2017 05:51 AM

I would not say that you are too conservative. Only the 2020 fund has an allocation that is not equities. Your overall equity AA is about 81%, which is not what one would classify as conservative. I will RE in March and have pared back my equity AA over the last 2 years from where you are to 61% now. You do not say how much the lump sum is but if you put that into Wellington then your equity AA would drop by some degree, but that would be OK too.

jazz4cash 02-20-2017 09:16 AM

Sounds like you got some pretty good support from T Rowe Price. What did they say about your asset allocation? If it's 81% equity as DrRoy stated, that is the opposite of conservative, but I don't understand your statement about "running over 6 % for last few years. Currently at 7.8%"

Does TRoweP have anyone specifically assigned to help clients with retirement transition? Fidelity had a department that would look at your overall situation and provide insight.

exnavynuke 02-20-2017 09:24 AM

The 2020 plan is ~ 55% equities and the rest bond/cash/other. So, 45% of 60% of his portfolio is in bond/cash (since the others are almost 100% equity). 45% of 60% being 27%, I put his AA at ~73/27. With ~20+% of his total assets in small/mid cap stocks, that's pretty aggressive at retirement i'd say.

pb4uski 02-20-2017 09:38 AM

Have you used a tool like M* X-Ray to analyze your holdings? Or alternatively, I'm sure TRP has a tool that will do it for you or you can link or input your non-Vanguard holdings and use Vanguard's Portfolio Watch.

70/30 is not at all conservative, especially since you don't have a pension payout.

From what I recall of this community, most early retirees are in the 30/70 to 70/30 range, with most being 50/50 or 60/40... so you would be towards the aggressive edge of most people here that are your age (but there are some that are more aggressive). Just do some research/reading... decide what you want your AA to be... and then transition towards that target.

Does your 401k offer a stable value fund? If so, what does it yield?

Terryjm51 02-20-2017 09:46 PM

Yes they do offer tpr stable fund yielding looks to me between 2-5%

I do appreciate the advice, I am calling trp tomorrow to have a discussion.
I guess it doesn't seem aggressive to me because I have always had these type funds......heck back in the day I had single stock Amoco and BP stock. Sold for what I have now.

I do plan to visit with someone, My plan is to leave these plans alone for 4-5 more years. If I do withdraw it will be 1 % percent. I am going back to work running a business with my son.
Thank you again

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