I've recently done some consolidating of my accounts. I've moved most everything except my current workplace 401K and my savings/checking account to Fidelity. I've also converted my old 401K accounts to IRA/Roth IRA accounts. I plan to retire in 18 months.
Here's my situation:
Emergency Funds: Yes - CD's and savings - ~100K
Debt: None
Tax Filing: Married Filing Jointly
Tax Rate: 22% Federal, no state income tax
State: WA
Age: 65, wife is 63
Desired Asset Allocation: Has been 65 stock/ 35 bond, considering shifting to more bonds to reduce risk.
Desired International Allocation: 20%
Portfolio size: 2-3M
Taxable:
3.8% Fidelity Money Mkt (FZDXX)
9.7% Vang Total Stock Mkt Index (VTSAX) (.04)
3.7% 3 yr Annuity started 8/2023, 4.85%, MassMutual
0.4% Cash
His Rollover IRA:
0.9% Fidelity MidCap Index (FSMDX) (.03)
2.0% Fidelity 500 Index (FXAIX) (.02)
5.3% Fidelity US Bond Index (FXNAX) (.03)
9.6% Fidelity Zero Intntl Index (FZILX)(0)
4.5% Fidelity Zero Extended Mkt Index (FZIPX) (0)
0.7% Schwab Int US Treas (SCHR) (.03)
2.5% Vanguard Infl. Prot. Sec. Adm (VAIPX) (.10)
2.1% Vanguard Total Int Bond Index (VTABX) (.11)
14.8% 5 yr Annuity started 1/2024, 4.4%, USAA
His Roth IRA:
10.6% Fidelity Zero Large Cap Index (FNILX) (0)
3.0% Schwab Int US Treas (SCHR) (.03)
3.6% Vanguard REIT Index (VGSLX) (.12)
Her Roth IRA:
2.0% Schwab US TIPS (SCHP)(.03)
0.7% Vanguard Total Bond Index (VBTLX) (.05)
2.9% Vanguard REIT Index (VGSLX) (.12)
0.8% Vanguard Total Int Bond Index (VTABX) (.11)
His Roth 401K:
12.5% SSgA S&P 500 Index (SSSYX) (.01)
3.9% SSgA Russell Sm/Mid Cap Index (SSMKX) (.04)
Contributions:
$8000 His Roth IRA
$8000 Her Roth IRA
$30,500 His Roth 401K
$4,700 - His 401K Company Match
Available funds in His Roth 401K:
SSgA GlblAllCap exUS Index (SSGLX) (.07)
SSgA US Bond Index (SSFEX) (.03)
Since consolidating at Fidelity, I was put in touch with a Fidelity advisor. The most recent advice resulted in the 2 annuities - one in the Taxable account and the other in the IRA Rollover. I was wanting to move a portion of my portfolio to less risky investments, and this is what he recommended.
Questions:
1 - Were these annuities a mistake? If so, what is the best path forward? I'm assuming I should stay until the annuity matures.
2 - What fund consolidations would you recommend going forward?
Here's my situation:
Emergency Funds: Yes - CD's and savings - ~100K
Debt: None
Tax Filing: Married Filing Jointly
Tax Rate: 22% Federal, no state income tax
State: WA
Age: 65, wife is 63
Desired Asset Allocation: Has been 65 stock/ 35 bond, considering shifting to more bonds to reduce risk.
Desired International Allocation: 20%
Portfolio size: 2-3M
Taxable:
3.8% Fidelity Money Mkt (FZDXX)
9.7% Vang Total Stock Mkt Index (VTSAX) (.04)
3.7% 3 yr Annuity started 8/2023, 4.85%, MassMutual
0.4% Cash
His Rollover IRA:
0.9% Fidelity MidCap Index (FSMDX) (.03)
2.0% Fidelity 500 Index (FXAIX) (.02)
5.3% Fidelity US Bond Index (FXNAX) (.03)
9.6% Fidelity Zero Intntl Index (FZILX)(0)
4.5% Fidelity Zero Extended Mkt Index (FZIPX) (0)
0.7% Schwab Int US Treas (SCHR) (.03)
2.5% Vanguard Infl. Prot. Sec. Adm (VAIPX) (.10)
2.1% Vanguard Total Int Bond Index (VTABX) (.11)
14.8% 5 yr Annuity started 1/2024, 4.4%, USAA
His Roth IRA:
10.6% Fidelity Zero Large Cap Index (FNILX) (0)
3.0% Schwab Int US Treas (SCHR) (.03)
3.6% Vanguard REIT Index (VGSLX) (.12)
Her Roth IRA:
2.0% Schwab US TIPS (SCHP)(.03)
0.7% Vanguard Total Bond Index (VBTLX) (.05)
2.9% Vanguard REIT Index (VGSLX) (.12)
0.8% Vanguard Total Int Bond Index (VTABX) (.11)
His Roth 401K:
12.5% SSgA S&P 500 Index (SSSYX) (.01)
3.9% SSgA Russell Sm/Mid Cap Index (SSMKX) (.04)
Contributions:
$8000 His Roth IRA
$8000 Her Roth IRA
$30,500 His Roth 401K
$4,700 - His 401K Company Match
Available funds in His Roth 401K:
SSgA GlblAllCap exUS Index (SSGLX) (.07)
SSgA US Bond Index (SSFEX) (.03)
Since consolidating at Fidelity, I was put in touch with a Fidelity advisor. The most recent advice resulted in the 2 annuities - one in the Taxable account and the other in the IRA Rollover. I was wanting to move a portion of my portfolio to less risky investments, and this is what he recommended.
Questions:
1 - Were these annuities a mistake? If so, what is the best path forward? I'm assuming I should stay until the annuity matures.
2 - What fund consolidations would you recommend going forward?
Statistics: Posted by breezly — Thu Feb 08, 2024 8:56 pm — Replies 1 — Views 236