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

[WallStreetPhysician]

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.

-WSP

[AK2TX]

 

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…

 

Other

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!