Hello Forum,
My wife just transferred jobs. She has $74,841.18 in her account with Fidelity at her old job. When she started contributing to this neither of us knew anything about investing and personal finance so she just closed her eyes and picked. She picked a target fund that is about 95% equities (FNSDX listed below). Our goal now is 100% equities because she is 29 and I am 30 and we plan to retire in 30+ years. We will slowly add bonds to our portfolio. FUN FACT: Her new job is also where I start as an attending in August so these are the same 403 options I will have [She is NOT a physician so no 457 for her].
Where we can use help is the approach to analyzing our options and which to choose as my method is:
1. Find lowest expense ratio.
2. Is it an index fund? Does it say Vanguard in the name?
3. Click accept
Probably not the best approach especially as things are only going to get more complex this year as we will be starting to really save for retirement (i.e. maxing out 403b x2, 457, HSA and backdoor Roths +/- taxable brokerage account). I plan to learn a little more about tax effient allocations throughout the year especially in preparation for starting my attending job and having the 2nd 403b and 457 become available to be funded. But for now we have to figure out a few basic things (walk before we run if you will).
Step #1: What do we do with the fidelity account?
Step #2: Figure out how to invest in new Prudential 403b as it is our only option while we both work at same hospital.
Our choices [Cannot view table on phone]:
Our only other retirement account is $22,500 with Vanguard for a Roth IRAs (2017-2018 contributions). It is 50% Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) and 50% Vanguard Total International Stock Index Fund Admiral Shares (VTIAX).
Thank you for any input!
My wife just transferred jobs. She has $74,841.18 in her account with Fidelity at her old job. When she started contributing to this neither of us knew anything about investing and personal finance so she just closed her eyes and picked. She picked a target fund that is about 95% equities (FNSDX listed below). Our goal now is 100% equities because she is 29 and I am 30 and we plan to retire in 30+ years. We will slowly add bonds to our portfolio. FUN FACT: Her new job is also where I start as an attending in August so these are the same 403 options I will have [She is NOT a physician so no 457 for her].
Where we can use help is the approach to analyzing our options and which to choose as my method is:
1. Find lowest expense ratio.
2. Is it an index fund? Does it say Vanguard in the name?
3. Click accept
Probably not the best approach especially as things are only going to get more complex this year as we will be starting to really save for retirement (i.e. maxing out 403b x2, 457, HSA and backdoor Roths +/- taxable brokerage account). I plan to learn a little more about tax effient allocations throughout the year especially in preparation for starting my attending job and having the 2nd 403b and 457 become available to be funded. But for now we have to figure out a few basic things (walk before we run if you will).
Step #1: What do we do with the fidelity account?
Our 3 options:
1. Keep it in Fidelty
2. Rollover into her new 403b with Prudential
3. Rollover into IRA (NOT DOING THIS- Will pay >$23k in state and federal taxes on this)
Step #2: Figure out how to invest in new Prudential 403b as it is our only option while we both work at same hospital.
Our choices [Cannot view table on phone]:
Fidelity (Previous Employer) | |||||
Investment Name | Symbol | Asset Class | 10yr ROI | Net Exp Ratio | Gross Exp Ratio |
Fidelity Freedom 2055 Fund- Class K | FNSDX | Blend | 9.17% | 0.64% | 0.64% |
T. Rowe Price Blue Chip Growth Fund | TRBCX | Stock | 10.50% | 0.72% | 0.72% |
American Beacon Small Cap Value | AVFIX | Stock | 9.57% | 0.84% | 0.84% |
Fidelity Extended Market Index Fund | FSEVX | Stock | 9.28% | 0.07% | 0.07% |
Fidelity 500 Index Fund- Premium | FUSVX | Stock | 8.47% | 0.04% | 0.04% |
John Hancock Funds Disciplined | JDVWX | Stock | 8.46% | 0.72% | 0.72% |
Baron Smal Cap Fund Institutional | BSFIX | Stock | 8.19% | 1.06% | 1.06% |
Baird Core Plus Bond, Fund Class | BCOIX | Bond | 5.28% | 0.30% | 0.30% |
Wells Fargo Emerging Markets | EMGNX | Stock | 2.90% | 1.19% | 1.27% |
Fidelity Diversified International Fund | FDIKX | Stock | 2.35% | 0.82% | 0.82% |
iShares U.S. Aggregate Bond | WFBIX | Bond | 3.28% | 0.05% | 0.07% |
Prudential (New Employer) | |||||
Principal Preservation Separate Account | 1.68% | 0.10% | 0.10% | ||
Metropolitan West Total Return Bd M | MWTRX | Bond | 5.35% | 0.67% | 0.67% |
Principal High Yield A | CPHYX | Bond | 7.15% | 0.91% | 0.91% |
Prudential Income Flex Target Balanced Fund Class Z | Blend | 8.65% | 2.10% | 2.10% | |
Diamond Hill Large Cap A | DHLAX | Stock | 8.02% | 0.98% | 0.98% |
Oakmark Investor | OAKMX | Stock | 10.44% | 0.89% | 0.93% |
Vanguard Institutional Index I | VINIX | Stock | 8.30% | 0.04% | 0.04% |
T. Rowe Price Blue Chip Growth | TRBCX | Stock | 10.48% | 0.72% | 0.72% |
Jhandcock Disciplined Value Mid Cap R2 | JVMSX | Stock | 11.03% | 1.27% | 1.27% |
Vanguard Mid Cap Index Admiral | VIMAX | Stock | 8.81% | 0.06% | 0.06% |
Artisan Mid Cap Institutional | APHMX | Stock | 8.98% | 0.95% | 0.95% |
Principal MidCap A | PEMGX | Stock | 10.98% | 0.99% | 0.99% |
Virtus Ceredex Small Cap Value Eq A | SASVX | Stock | 8.80% | 1.48% | 1.48% |
Gabelli Small Cap Growth A | GCASX | Stock | 9.41% | 1.39% | 1.39% |
Voya SmallCap Opportunities A | NSPAX | Stock | 9.47% | 1.41% | 1.41% |
American Funds Europacific Growth R4 | REREX | Stock | 3.35% | 0.85% | 0.85% |
Oppenheimer Developing Markets A | ODMAX | Stock | 4.10% | 1.32% | 1.32% |
Cohen & Sters Realty Shares | CSRSX | Real Estate | 7.35% | 0.96% | 0.96% |
Principal Diversified Real Asset Instl | PDRDX | Blend | 4.09% | 0.89% | 0.89% |
Our only other retirement account is $22,500 with Vanguard for a Roth IRAs (2017-2018 contributions). It is 50% Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) and 50% Vanguard Total International Stock Index Fund Admiral Shares (VTIAX).
Thank you for any input!
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