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Hello WCI,
My first post!
SO...I've been working for about 3 years now, and started investing into my company 401. Rather erratically at first as you will see, but I've maxed out this year and plan to for the years to come.
Had no idea what I was doing at the beginning, but I've become a little wiser (thanks to WCI and Bogleheads). There are two "mistakes" I made early on, and I wanted some advice as to what I should do. Nothing life-altering, but I figure the dialogue would be educational and I could avoid making any bad moves with my already invested monies.
SO...
The 401/403k has about 35k. It's a mix of 401a and 403b because my company was at first using the 401 for their contributions but appears they have switched entirely to 403 for my contributions and theirs.) Excuse the following: When I started contributing 3 years ago, I put 10k into Roth 403, which is now worth about 11.5k. I'll be 100% vested in their contributions in 2 years.
Also, I opened Vanguard IRA (traditional and Roth) this year and plan to start using the backdoor soon. Excuse the silliness of the following. I put 50 dollars (yes, 50) into the traditional to try it out. I made $0.07 on the Fed MM Fund over the course of a month since I didn't convert it right away. I've transferred it to the Roth IRA just now.
Question 1. Do I need to worry about the IRA? As to what I've read so far, I would incur a penalty on 7 cents when I do my taxes when I file, yes? I will be contributing the full amount starting next year and transferring the next day per instructions to avoid taxation. Once I've done that I can actually open an index fund of course. Also, should I worry about any "residuals" than pop into the traditional over the next 60 days?
Q2. So the portion of my 403 that's Roth. Should I just leave this as is? It's held with Fidelity. Can I or should I roll it into my new Vanguard Roth IRA?
Q3. Rebalancing. To give some insight first. I currently have about a 60/40 domest/interntl mix in the 401/403. All vanguard products. Less than 10% overall and even less cash. Once I get the Roth IRA going, how should I rebalance? Should I keep the mix the same in both accounts or use one for international and the other for domestic? or what? Are there any benefits to putting all the bonds or all the international equities in one account over the other?
Q4. Future investments. As I continue to save, I am looking at opening taxable accounts after maxing out the 401/IRA. How would one rebalance then?
Of course, I'm aware that I'm kind of small on bonds at the moment. I wanted to keep it this way for now and incorporate more into my portfolio as I grow.
Any advice/questions welcome.
Yours,
JTB
My first post!
SO...I've been working for about 3 years now, and started investing into my company 401. Rather erratically at first as you will see, but I've maxed out this year and plan to for the years to come.
Had no idea what I was doing at the beginning, but I've become a little wiser (thanks to WCI and Bogleheads). There are two "mistakes" I made early on, and I wanted some advice as to what I should do. Nothing life-altering, but I figure the dialogue would be educational and I could avoid making any bad moves with my already invested monies.
SO...
The 401/403k has about 35k. It's a mix of 401a and 403b because my company was at first using the 401 for their contributions but appears they have switched entirely to 403 for my contributions and theirs.) Excuse the following: When I started contributing 3 years ago, I put 10k into Roth 403, which is now worth about 11.5k. I'll be 100% vested in their contributions in 2 years.
Also, I opened Vanguard IRA (traditional and Roth) this year and plan to start using the backdoor soon. Excuse the silliness of the following. I put 50 dollars (yes, 50) into the traditional to try it out. I made $0.07 on the Fed MM Fund over the course of a month since I didn't convert it right away. I've transferred it to the Roth IRA just now.
Question 1. Do I need to worry about the IRA? As to what I've read so far, I would incur a penalty on 7 cents when I do my taxes when I file, yes? I will be contributing the full amount starting next year and transferring the next day per instructions to avoid taxation. Once I've done that I can actually open an index fund of course. Also, should I worry about any "residuals" than pop into the traditional over the next 60 days?
Q2. So the portion of my 403 that's Roth. Should I just leave this as is? It's held with Fidelity. Can I or should I roll it into my new Vanguard Roth IRA?
Q3. Rebalancing. To give some insight first. I currently have about a 60/40 domest/interntl mix in the 401/403. All vanguard products. Less than 10% overall and even less cash. Once I get the Roth IRA going, how should I rebalance? Should I keep the mix the same in both accounts or use one for international and the other for domestic? or what? Are there any benefits to putting all the bonds or all the international equities in one account over the other?
Q4. Future investments. As I continue to save, I am looking at opening taxable accounts after maxing out the 401/IRA. How would one rebalance then?
Of course, I'm aware that I'm kind of small on bonds at the moment. I wanted to keep it this way for now and incorporate more into my portfolio as I grow.
Any advice/questions welcome.
Yours,
JTB
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