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Roth IRA & Insurance Questions For a Soon To Be Intern!

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  • Roth IRA & Insurance Questions For a Soon To Be Intern!


    I have been busy getting the financial ducks in a row recently after finishing my last rotation of medical school. Some of my questions as you look over the following pertain mostly to my wife and my Roth’s.

    • My wife’s Roth. Her Fidelity Freedom 2050 (FFFHX) Roth has an ER of .77% and roughly $20,000 in it. I was thinking about transferring it over to the Vanguard Target Retirement 2050 (VFIFX) with an ER of .16% Is this advisable? Would we be hit with a lot of cost to transfer the funds to a different institution? The difference in ERs is reason alone I think, but would love another opinion.

    • My Roth. Currently at Betterment with about $6,000 and not yet fully funded for 2017 (if I were to fund it today, it would have $10,00+), and I am moving it over to Vanguard now. Not sure what to place it into though…


    Option one:

    -Vanguard Total Stock Market Index Fund (VTSMX) 75%

    -Vanguard Total International Stock Index (VGTSX) 15%

    -Vanguard Total Bond Market Index Fund (VBMFX) 10%

    *From the reading I have been doing, I think I want to pursue this option. I would meet minimums for each account, though it would not be properly balanced initially. Would I be better off just entering into a Target Retirement Fund like my wife’s Roth, allowing it to grow and then making a switch to self-management?


    Option two:

    Vanguard Total Stock Market Index Fund (VTSMX) 100%

    * I am 31 and could take some risks as retirement remains 30+ years away.


    Option three:

    Vanguard Target Retirement 2050 (VFIFX)

    Vanguard Life Strategy…



    Life Insurance

    • Thrivent Financial Term Life Insurance

      • $2,000,000 Policy on Mr.

    • $1,315 Annual premium ($110 per month)


    Disability Insurance

    • Berkshire Premier Package True Own-Occupation

      • $4,000 monthly benefit with 90 day waiting period Policy

      • Future Increase Option $12,000/mo.

      • Enhanced Partial Disability Benefit Rider

      • Cost of Living Adjustment

    • Graded Annual premium $1,087 ($91 per month) ($1,135 in 2018)


    Auto Insurance

    • USAA Auto

      • $300,000 Body Injury

      • $500,000 Total per Accident

      • $100,000 Others Property

      • $75,000 Medical Per Person Coverage

    • $295.85 Semi-Annually ($50 per month)


    Renter’s Insurance

    • USAA Renter’s

      • $30,000 Personal Belongings

      • $100,000 Liability

      • $3,000 Computer coverage

    • $276.08 Annually ($23 per month)


    What are your thoughts about these policies? Would you change/add anything? Am I missing anything? Thanks again!

  • #2
    Congrats on getting your ducks in a row before starting as an intern. For your wife, if you want to stay at Fidelity, consider the Fidelity Freedom Index 2050 (emphasis on the Index) - ticker FIPFX, which has an expense ratio of 0.15%. I would do something similar for your account, rather than using Betterment. You sound motivated enough to do DIY investing.