Hi all,
I get to finally put into my employer's 401k that they have with merrill lynch, but once I saw the choices I was pretty disappointed. There was only one or 2 passively managed index fund available, and the international fund charges a 12b-1 (although overall its expense ratio is just 0.4% so not horrible). I had kept a 403b from residency and a 457 plan from my previous job, along with Roth IRAs that I now backdoor and an HSA. I was hoping to consolidate/rollover a lot of the funds (I had 22 different funds way too much) once I knew my 401k options to simplify things, but it seems I'll be stuck with multiple investments since the old 403 and 457 plans have better options. So this is what I finally came up with, and I will end up using the old 457 and 403b to rebalance as my 401k grows. I aim for (and currently hold) roughly a 70% stocks (40% US large, 5% US mid, 5% US small, 20% international), 5%REIT, 25% bond mix. I'm 37 but went to med school late so have only been an attending for a year and a half so far, with a little over 6 figures invested, all in non-taxable accounts. Any thoughts are appreciated. I'm still paying down student loans but maximizing the available tax deferred/roth/hsa space available to me. Am I on the right road to Dublin?
Employer's 401k: will put 75% in Blackrock SP 500 Index (inst) and 25% in the blackrock International Index (class A)--> they were the only 2 funds with expense ratios under 0.5 and passively managed
Roth IRAs:
Vangaurd Target 2040 (plan on using this to increase REIT exposure as needed)
Vanguard REIT (only reit exposure)
Fidelity 500 index
Fidelity Bond Index (FBIDX) (I plan on using this to increase my bond exposure from the FID 500 index as needed, slowly eliminating the Fid 500 index as my hsa and 401k grow)
HSA: Vanguard Total Stock Index (only good choice available)
457 plan:
Vanguard Instituional index
Vanguard Midcap Index
Vangaurd Total Bond Fund Index (will also similarly be decreasing the institutional index to rebalance the Midcap and Bond as needed)
403 via TIAA CREF
TIAA Access Large Growth Cap Index
TIAA small cap blend index --> this will be changed to vanguards small cap in Jan when institutional fares are offered
TIAA access International Equity Index
TIAA Access Bond Index (I also expect to use these funds to rebalance the large growth into small cap or bond as needed).
TIAA Guaranteed (will be used to rebalance as needed and eliminated by DEC 2017; I counted this as a bond for my allocation).
So there it is, 15 funds but all with expense ratios 0.4% or under, with most under 0.2%.
Thanks and Merry Christmas,
Billy
I get to finally put into my employer's 401k that they have with merrill lynch, but once I saw the choices I was pretty disappointed. There was only one or 2 passively managed index fund available, and the international fund charges a 12b-1 (although overall its expense ratio is just 0.4% so not horrible). I had kept a 403b from residency and a 457 plan from my previous job, along with Roth IRAs that I now backdoor and an HSA. I was hoping to consolidate/rollover a lot of the funds (I had 22 different funds way too much) once I knew my 401k options to simplify things, but it seems I'll be stuck with multiple investments since the old 403 and 457 plans have better options. So this is what I finally came up with, and I will end up using the old 457 and 403b to rebalance as my 401k grows. I aim for (and currently hold) roughly a 70% stocks (40% US large, 5% US mid, 5% US small, 20% international), 5%REIT, 25% bond mix. I'm 37 but went to med school late so have only been an attending for a year and a half so far, with a little over 6 figures invested, all in non-taxable accounts. Any thoughts are appreciated. I'm still paying down student loans but maximizing the available tax deferred/roth/hsa space available to me. Am I on the right road to Dublin?
Employer's 401k: will put 75% in Blackrock SP 500 Index (inst) and 25% in the blackrock International Index (class A)--> they were the only 2 funds with expense ratios under 0.5 and passively managed
Roth IRAs:
Vangaurd Target 2040 (plan on using this to increase REIT exposure as needed)
Vanguard REIT (only reit exposure)
Fidelity 500 index
Fidelity Bond Index (FBIDX) (I plan on using this to increase my bond exposure from the FID 500 index as needed, slowly eliminating the Fid 500 index as my hsa and 401k grow)
HSA: Vanguard Total Stock Index (only good choice available)
457 plan:
Vanguard Instituional index
Vanguard Midcap Index
Vangaurd Total Bond Fund Index (will also similarly be decreasing the institutional index to rebalance the Midcap and Bond as needed)
403 via TIAA CREF
TIAA Access Large Growth Cap Index
TIAA small cap blend index --> this will be changed to vanguards small cap in Jan when institutional fares are offered
TIAA access International Equity Index
TIAA Access Bond Index (I also expect to use these funds to rebalance the large growth into small cap or bond as needed).
TIAA Guaranteed (will be used to rebalance as needed and eliminated by DEC 2017; I counted this as a bond for my allocation).
So there it is, 15 funds but all with expense ratios 0.4% or under, with most under 0.2%.
Thanks and Merry Christmas,
Billy
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