Hi Bogleheads,
I have been lurking around the Bogleheads forum for quite some time but finally got the courage to post my questions! I tried to compile our financial information as best I could below, but honestly, I am not the best at these kind of things. Here's our scenario in a nutshell. My wife is 52 and plans on retiring at 60. She is a teacher and will get a pension of roughly $90,000 a year after she retires. I'm 48 and would LOVE to retire at 58-60 if possible, but I have to rely on my 401K/Roth IRA/Savings until Social Security kicks in. I know Health Care costs are high, so I realize I might need to at least get a part time gig that pays Health Insurance at 60, but I want to at least dial it back from the corporate grind so I can coast along until I can officially retire.
Anyways, we are at a point of our lives where our 401K's and 403b's are getting too high for me to handle on my own (or I should say I am nervous handling these amounts on my own), and we aren't sure if we should start paying a Financial Advisor to help guide us on allocations and retirement goals. Honestly, I have been handling all of this for both my wife and I and I'm starting to get nervous about my allocation choices and I am not sure we invested correctly to set us up for the future correctly. I want to make sure to protect our investments from the market crashes etc....We just met with a Financial Advisor last week who is a friend of a friend that works for a division of Raymond James. He was very knowledgable and gave us some great information, but in order for us to work with him, I would need to do an "In-Service Withdrawal" from my Fidelity 401K to move my 401k money over to him so he can start to invest for me. The thing that I liked about Raymond James is that they have access to invest in all of the market as opposed to my Fidelity 401k options (I have listed all of my Fidelity 401k investment options down below at the bottom of this thread). I also like that he can run a yearly analysis for us to make sure we are on track for retirement. I believe his fee is 1% but I am verifying that.
Long story short, here are my main questions and please let me know if any other info is needed:
1) Am I an idiot for thinking we need to pay a Financial Advisor 1% at this point of our lives and is it a terrible move to make an "In-Service Withdrawal and move my 401k money to him to handle, or should I just keep handling it myself?
2) Instead for paying for a financial advisor, should we utilize Fidelity and Vanguard services to help guide us?
3) Can you guys/gals chime in and let me know what you think about my allocation decisions on our accounts below? I am totally open on moving things around in my Fidelity 401k but not quite sure how to allocate. I am also open to moving things around in my wife's 403b Vanguard account. The financial advisor suggested I add some % into Small Cap Stocks
4) If I do keep handling these accounts on my own, how should I re-balance my positions annually until we retire? Stay the course and just keep increasing bonds every year?
Below is our financial information and thank you in advance for looking, I appreciate ANY advice!
Emergency funds: $40,000 in Marcus High Yield Savings Account (Currently 4.35% interest)
Debt: Mortgage - We owe $140,000 (Our house is worth $340,000 roughly, we bought for $265,000). No other debt
Tax Filing Status: Married Filing Jointly
Tax Rate: I believe 24%
State of Residence: IL
Age: I'm 48 my wife is 52
Desired Asset allocation: Unsure, but I currently follow the 120 - your age for bonds. 60% in SP 500, 12% in Large Cap and 28% Bonds.
Please provide an approximate size of your total portfolio. Mine 401K: $780,000. Roth IRA: $74,000. Crypto: $50,000 Savings: $40,000. Wife's: 403b $250,000. Roth IRA $16,000
Taxable
None (I don't think). I don't really understand this question? Would this be money outside our 401k & 403B and Roth IRA's? If so, we don't have any extra money for taxable accounts.
His 401k Fidelity - $780,000
FID 500 Index (FXAIX) 60% (expense ratio, I don't know how to figure this out?)
FID DIV INTL PL CL C (31617E521)
12%PIM TOTAL RT INST (PTTRX) 28%
Company match? Yes, I believe it's 4% match but only up to a certain amount of $$.
His Roth IRA at Fidelity - $74,000
FID 500 Index (FXAIX) 71.16% (expense ratio)
Alphabet (GOOGL) - 4.41%
Advanced Micro Devices (AMD) - 2.32%
Amazon (AMZN) - 5.85%
Meta (META) - 2.96%
Nividia (NVDA) - 4.76%
Soundhound AI (SOUN) - 8.54%
Crypto in my Fidelity - BTC - $9,724
Her 403b - Vanguard - $229,527
Vanguard Target Retirement 2035 - 100% (expense ratio, not sure)
Company match? NO
Her ROTH IRA at Vanguard - $16,000
Vanguard Total World Stock Index (VTWAX) (expense ratio, not sure)
Contributions
New annual Contributions
$22,000 his 401k (also specify any employer matching contributions) 4% but only up to a certain percent.
$15,000 her 403b (also specify any employer matching contributions) NONE
$7000 His Roth IRA
$3000 Hers Roth IRA
MY FIDELITY 401k CHOICES (not including the Target Retirement Funds, too many to list but those are options too)
Bond/Managed IncomeIntermediate-TermPIM TOTAL RT INST28%
Bond/Managed IncomeIntermediate-TermSS US BOND INDX XIV
Bond/Managed IncomeStable ValueSTABLE VALUE FUND
Stock InvestmentsCompany StockOMNICOM STOCK FUND
Stock InvestmentsLarge GrowthFID 500 INDEX60%
Stock InvestmentsLarge GrowthFID CONTRA POOL CL D
Stock InvestmentsLarge GrowthJPM LG CP GRTH CF-A
Stock InvestmentsLarge GrowthVANG FTSE SOC IDX IS
Stock InvestmentsLarge ValueTRP LARGE-CAP VAL I
Stock InvestmentsSmall GrowthWM BLAIR SMMIDCP GR
Stock InvestmentsSmall BlendSS RSL SMMDCP IDX II
Stock InvestmentsSmall ValueAB DISC VALUE Z
Stock InvestmentsForeignFID DIV INTL PL CL C12%
Stock InvestmentsForeignSS GACEQ EXUS IDX II
I have been lurking around the Bogleheads forum for quite some time but finally got the courage to post my questions! I tried to compile our financial information as best I could below, but honestly, I am not the best at these kind of things. Here's our scenario in a nutshell. My wife is 52 and plans on retiring at 60. She is a teacher and will get a pension of roughly $90,000 a year after she retires. I'm 48 and would LOVE to retire at 58-60 if possible, but I have to rely on my 401K/Roth IRA/Savings until Social Security kicks in. I know Health Care costs are high, so I realize I might need to at least get a part time gig that pays Health Insurance at 60, but I want to at least dial it back from the corporate grind so I can coast along until I can officially retire.
Anyways, we are at a point of our lives where our 401K's and 403b's are getting too high for me to handle on my own (or I should say I am nervous handling these amounts on my own), and we aren't sure if we should start paying a Financial Advisor to help guide us on allocations and retirement goals. Honestly, I have been handling all of this for both my wife and I and I'm starting to get nervous about my allocation choices and I am not sure we invested correctly to set us up for the future correctly. I want to make sure to protect our investments from the market crashes etc....We just met with a Financial Advisor last week who is a friend of a friend that works for a division of Raymond James. He was very knowledgable and gave us some great information, but in order for us to work with him, I would need to do an "In-Service Withdrawal" from my Fidelity 401K to move my 401k money over to him so he can start to invest for me. The thing that I liked about Raymond James is that they have access to invest in all of the market as opposed to my Fidelity 401k options (I have listed all of my Fidelity 401k investment options down below at the bottom of this thread). I also like that he can run a yearly analysis for us to make sure we are on track for retirement. I believe his fee is 1% but I am verifying that.
Long story short, here are my main questions and please let me know if any other info is needed:
1) Am I an idiot for thinking we need to pay a Financial Advisor 1% at this point of our lives and is it a terrible move to make an "In-Service Withdrawal and move my 401k money to him to handle, or should I just keep handling it myself?
2) Instead for paying for a financial advisor, should we utilize Fidelity and Vanguard services to help guide us?
3) Can you guys/gals chime in and let me know what you think about my allocation decisions on our accounts below? I am totally open on moving things around in my Fidelity 401k but not quite sure how to allocate. I am also open to moving things around in my wife's 403b Vanguard account. The financial advisor suggested I add some % into Small Cap Stocks
4) If I do keep handling these accounts on my own, how should I re-balance my positions annually until we retire? Stay the course and just keep increasing bonds every year?
Below is our financial information and thank you in advance for looking, I appreciate ANY advice!
Emergency funds: $40,000 in Marcus High Yield Savings Account (Currently 4.35% interest)
Debt: Mortgage - We owe $140,000 (Our house is worth $340,000 roughly, we bought for $265,000). No other debt
Tax Filing Status: Married Filing Jointly
Tax Rate: I believe 24%
State of Residence: IL
Age: I'm 48 my wife is 52
Desired Asset allocation: Unsure, but I currently follow the 120 - your age for bonds. 60% in SP 500, 12% in Large Cap and 28% Bonds.
Please provide an approximate size of your total portfolio. Mine 401K: $780,000. Roth IRA: $74,000. Crypto: $50,000 Savings: $40,000. Wife's: 403b $250,000. Roth IRA $16,000
Taxable
None (I don't think). I don't really understand this question? Would this be money outside our 401k & 403B and Roth IRA's? If so, we don't have any extra money for taxable accounts.
His 401k Fidelity - $780,000
FID 500 Index (FXAIX) 60% (expense ratio, I don't know how to figure this out?)
FID DIV INTL PL CL C (31617E521)
12%PIM TOTAL RT INST (PTTRX) 28%
Company match? Yes, I believe it's 4% match but only up to a certain amount of $$.
His Roth IRA at Fidelity - $74,000
FID 500 Index (FXAIX) 71.16% (expense ratio)
Alphabet (GOOGL) - 4.41%
Advanced Micro Devices (AMD) - 2.32%
Amazon (AMZN) - 5.85%
Meta (META) - 2.96%
Nividia (NVDA) - 4.76%
Soundhound AI (SOUN) - 8.54%
Crypto in my Fidelity - BTC - $9,724
Her 403b - Vanguard - $229,527
Vanguard Target Retirement 2035 - 100% (expense ratio, not sure)
Company match? NO
Her ROTH IRA at Vanguard - $16,000
Vanguard Total World Stock Index (VTWAX) (expense ratio, not sure)
Contributions
New annual Contributions
$22,000 his 401k (also specify any employer matching contributions) 4% but only up to a certain percent.
$15,000 her 403b (also specify any employer matching contributions) NONE
$7000 His Roth IRA
$3000 Hers Roth IRA
MY FIDELITY 401k CHOICES (not including the Target Retirement Funds, too many to list but those are options too)
Bond/Managed IncomeIntermediate-TermPIM TOTAL RT INST28%
Bond/Managed IncomeIntermediate-TermSS US BOND INDX XIV
Bond/Managed IncomeStable ValueSTABLE VALUE FUND
Stock InvestmentsCompany StockOMNICOM STOCK FUND
Stock InvestmentsLarge GrowthFID 500 INDEX60%
Stock InvestmentsLarge GrowthFID CONTRA POOL CL D
Stock InvestmentsLarge GrowthJPM LG CP GRTH CF-A
Stock InvestmentsLarge GrowthVANG FTSE SOC IDX IS
Stock InvestmentsLarge ValueTRP LARGE-CAP VAL I
Stock InvestmentsSmall GrowthWM BLAIR SMMIDCP GR
Stock InvestmentsSmall BlendSS RSL SMMDCP IDX II
Stock InvestmentsSmall ValueAB DISC VALUE Z
Stock InvestmentsForeignFID DIV INTL PL CL C12%
Stock InvestmentsForeignSS GACEQ EXUS IDX II
Statistics: Posted by TW95 — Sun Aug 11, 2024 8:58 am — Replies 8 — Views 216