A couple of years ago I got a surprise in one of my old 457 accounts, that BlackRock was being discontinued and Vanguard Wellington Admiral fund was being offered. I chose the Vanguard fund, not thinking much of it, and I recently checked it out and discovered that my impression is that Wellington Admiral offers a backstop, or cushion, against when my index funds have bad days. Also, as I calculated the dividend for 2023 was about 6.3%, after Empower's $1.50 per month charge. Very impressive!
My original plan was to dump all of my 457,457b, 403b, and 401a funds into my fidelity TIRA this summer, about mid-July. Waiting until then because by then my Alaska retirement account will have finished settling and be ready to move over.
I am reconsidering the move, because I like Wellington Admiral so much. The only problem is that Wellington Admiral has a minimum $50k investment and my current Wellington is about $9k. This is a 457 from an old employer, so I cannot contribute. Wellington Admiral is a 4 star fund according to Morningstar. This appears to be a truly great fund, and is considered balanced.
Also, I am buying service credit in February of 2025-my current guess is $100k.
Are there any disadvantages to having 50k in the Wellington Admiral as part of the portfolio? Is the regular Wellington rated the same or not as good? Would Vanguard charge annual fees the same for either?
Here are two choices, and I appreciate a critique of each, as of August 1. (These are everything I will have except for a large emergency fund.)
I suppose a 3rd choice would be a regular Wellington fund at a much lower amount, and then go ahead and have the 100k in a HYSA?
plan A
50k Vanguard Wellington Admiral
120k Fidelity s and p 500 index fund
130k. Fidelity nasdaq 100 index fund
50k HYSA - to preserve gains- I am buying service credit in February 2025, and sell some funds to purchase the the remaining amount of service credit.
plan B
50k Vanguard Wellington Admiral
100k Fidelity s and p 500 index fund
100k Fidelity nasdaq 100 index k fund
100k HYSA - preserving gains-easily able to afford buying the service credit in February 2025- no need to sell anything.
Male, age 59, plan to teach 2 more years in Texas, wife already living in Texas, everything setup, job is there, but I don't know if I will have a commute expense or not. I love walking to work and have a job offer from the district where we have the apt. If I get the school location I want, I get to walk 8 minutes to work.
Because the pension will be good enough, I will not need any of the above mentioned funds until inflation beats me down for about 8-10 more years. I plan to replenish the
100k by continuing to make deposits into 457b and then working a job outside of education after I retire from education in the fall of 2026. I plan to allow myself 5 years to replenish the 100k, starting in March 2025.
DW and my funds - everything including emergency fund- project to be at least 450k in fall 2026. She will have SS of at least 16k, but mine will be about 7k. Her pension will be 6k and mine 44k.
My original plan was to dump all of my 457,457b, 403b, and 401a funds into my fidelity TIRA this summer, about mid-July. Waiting until then because by then my Alaska retirement account will have finished settling and be ready to move over.
I am reconsidering the move, because I like Wellington Admiral so much. The only problem is that Wellington Admiral has a minimum $50k investment and my current Wellington is about $9k. This is a 457 from an old employer, so I cannot contribute. Wellington Admiral is a 4 star fund according to Morningstar. This appears to be a truly great fund, and is considered balanced.
Also, I am buying service credit in February of 2025-my current guess is $100k.
Are there any disadvantages to having 50k in the Wellington Admiral as part of the portfolio? Is the regular Wellington rated the same or not as good? Would Vanguard charge annual fees the same for either?
Here are two choices, and I appreciate a critique of each, as of August 1. (These are everything I will have except for a large emergency fund.)
I suppose a 3rd choice would be a regular Wellington fund at a much lower amount, and then go ahead and have the 100k in a HYSA?
plan A
50k Vanguard Wellington Admiral
120k Fidelity s and p 500 index fund
130k. Fidelity nasdaq 100 index fund
50k HYSA - to preserve gains- I am buying service credit in February 2025, and sell some funds to purchase the the remaining amount of service credit.
plan B
50k Vanguard Wellington Admiral
100k Fidelity s and p 500 index fund
100k Fidelity nasdaq 100 index k fund
100k HYSA - preserving gains-easily able to afford buying the service credit in February 2025- no need to sell anything.
Male, age 59, plan to teach 2 more years in Texas, wife already living in Texas, everything setup, job is there, but I don't know if I will have a commute expense or not. I love walking to work and have a job offer from the district where we have the apt. If I get the school location I want, I get to walk 8 minutes to work.
Because the pension will be good enough, I will not need any of the above mentioned funds until inflation beats me down for about 8-10 more years. I plan to replenish the
100k by continuing to make deposits into 457b and then working a job outside of education after I retire from education in the fall of 2026. I plan to allow myself 5 years to replenish the 100k, starting in March 2025.
DW and my funds - everything including emergency fund- project to be at least 450k in fall 2026. She will have SS of at least 16k, but mine will be about 7k. Her pension will be 6k and mine 44k.
Statistics: Posted by AlaskaTeach — Sun Mar 10, 2024 11:59 pm — Replies 3 — Views 550