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Roth vs trad 403b and portfolio question

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  • Roth vs trad 403b and portfolio question

    Hello, 1st time poster here and have wanted to get some advice before deciding. My hospital is offering Roth and traditional 403b with no match.

    Question 1: Everywhere that I have read so far is suggesting roth as a resident. Is this what I should do?

    Me (33y/o)
    Current status: new PGY1 EM in 3yr program
    Starting salary: 61k/yr
    Filing status: single, no dependents, 2 fed and state allowance
    Target allocation: 80% stock/20%bond
    Target retirement: 65y/o

    Assets:
    2 saving accts: (3 months emergency saving so far)
    1 Roth IRA: Vanguard Lifestrategy Growth - VASGX (already maxed 2017 contribution)

    Question 2: From the listed investment, can I get some advise on which to pick, or should i stick with the JPmorgan smart retirement at this time?

    Hospital plan (no match) through TIAA: traditional and ROTH
    TIAA suggested allocation: 71% equities, 9% real  estates, 13% fixed, 7% guaranteed









































































































































































































    Name Ticker Class 1yr 5yr 10yr ER
    CREF social choice QCSCPX multi 10.90% 8.50% 5.42% 0.38%
    CREFstock acct QCSTPX equities 19.08% 12.12% 5.22% 0.43%
    Jpmorgan smart retirement 2050 JTSSX multi 13.69% 9.01% 0.80%
    jpmorgan smart retirement income fund select class JSRSX multi 7.08% 4.74% 4.52% 0.62%
    MFS value fund class MEIAX equities 16.70% 12.80% 6.88% 0.86%
    oppenheimer developgin market fund ODVYX equities 15.46% 2.34% 5.39% 1.07%
    pimco real return PARRX fixed 2.51% 0.77% 4.27% 0.70%
    pimco total return PTXRAX fixed 2.18% 2.70% 5.35% 0.71%
    prudential small company fund PSCZX equities 20.09% 11.63% 7.89% 0.84%
    t rowe price growth PRGFX equities 19.10% 13.57% 8.98% 0.68%
    templeton global bond TGBAX fixed 11.46% 388.00% 7.10% 0.68%
    gabelli small cap GACIX equities 20.31% 12.55% 8.58% 1.14%
    oakman int'l fund OAKIX equities 21.68% 8.98% 4.59% 1.00%
    tiaa real estate QREARX real estate 3.93% 8.21% 2.84% 0.85%
    tiaa traditional annuity -- guaranteed 3.30% 3.31% 3.27% --
    tiaa-cref bond index TBIPX fixed -0.76% 1.89% 0.27%
    tiaa-cref int'l equity TRIPX equities 19.87% 8.66% 1.13% 0.21%
    vanguard extended market index VIEIX equities 22.52% 12.62% 8.01% 0.06%
    vanguard federal money market VMFXX money market 0.36% 0.10% 0.72% 0.11%
    vanguard institutional VINIX equities 17.13% 13.27% 7.51% 0.04%
    wells fargo special mid cap WFMIX equities 20.02% 15.22% 8.83% 0.87%

    Thank you!

  • #2
    Why do you want so much fixed/guaranteed?

    How much student debt? Anything else your money is going to other than living and retirement savings?

    Yes, most likely best off doing Roth IRA first and then Roth 403(b) for whatever else you can afford, although you have the two Vanguard in there that should be 0.05% expense ratio or lower. I'd be surprised if you could put in $23,500 of your post-tax income to retirement each year...that's probably almost half your post-tax income.

    If you want to mirror total stock market index, so 4:1 ratio of Vanguard institutional (500) index and extended market index.

    I'd say to quit the target date fund and just use its constituent funds to save on fees, but that's literally prob like only $10/yr or so. I wouldn't commit yourself to whatever allocation the TDF has, either...but that's just personal opinion.

    Comment


    • #3




      Why do you want so much fixed/guaranteed?

      How much student debt? Anything else your money is going to other than living and retirement savings?

      Yes, most likely best off doing Roth IRA first and then Roth 403(b) for whatever else you can afford, although you have the two Vanguard in there that should be 0.05% expense ratio or lower. I’d be surprised if you could put in $23,500 of your post-tax income to retirement each year…that’s probably almost half your post-tax income.

      If you want to mirror total stock market index, so 4:1 ratio of Vanguard institutional (500) index and extended market index.

      I’d say to quit the target date fund and just use its constituent funds to save on fees, but that’s literally prob like only $10/yr or so. I wouldn’t commit yourself to whatever allocation the TDF has, either…but that’s just personal opinion.
      Click to expand...


      -Fix/guaranteed: when i put in that i want moderate aggressive. that was the percentage that TIAA spit out.

      -Student loan on REPAYE: ug+med school: ~417k

      -no other expenses other than living (NY)

      -since I maxed out my Roth IRA already for 2017. Most of the extra money will be going to the roth 403b retirement saving.

      Q1) should I pay my extra money toward the student loan interest this during residency or wait till after? Is it more advantageous to put it toward retirement?

      Q2) Just to make sure I understand correctly, with the 4:1 ratio I would allocation by fund to be 80% vanguard institutional and 20% vanguard extended market. Total ER: 0.1%

      boglehead recommended:

      Vanguard institutional (36%)
      Vanguard extended market (12%)
      TIAA-CREF bond index (20%)
      TIAA-CREF international equities (32%)

      Total ER: 0.58% (I think, I just added up all the ER for all 4)

      Q3) Can someone comment on the pros and cons for either portfolio?

       

      Thank you for all the advice!

       

      Comment

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