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bk10s

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  1. I have downloaded the necessary forms for the transfer to Vanguard and have begun filling them out. Also getting the legal paperwork in order. Just need a little help from Vanguard in filling out some of the forms, as the guardianship makes things a little tricky. This will happen Monday. I can move everything over, and the remaining stocks can be held at Vanguard. Hooray!
  2. And this is one of the major reasons why I have not done ANYTHING over this past year as Guardian. Besides the large tax consequence of selling any of the 3 utility stocks, the dividends were easily covering his expenses. Additionally, he was a retired CPA (for his state during his working years) and obviously was comfortable with what he was doing. I agree completely about diversifying this portfolio gradually over time. Again, thank you to all for the continued hand-holding!
  3. Vanguard told me that I can hold the utility stocks at Vanguard. No tax consequences until the stocks are sold.
  4. So, over the past year I have left his account where it was - At Etrade. This recent event has forced my hand, as I did not want to cause a taxable event with his dividend producing utility stocks. Now that this event has forced my hand, I want to begin to diversify his holdings. I’m gaining knowledge to make wise, informed decisions.
  5. Ed - Great minds think alike!
  6. Oh my gosh! I just checked and VWIUX is NOT available through Etrade!
  7. Thank you for the great ideas. One more question. The account is presently with Etrade. I intend to diversify this portfolio now with some low cost funds (including VWIUX). Many funds, including Vanguard, can be purchased through the Etrade account. Would it be suggested that I make the transactions through the Etrade account? Or, open a separate account at Vanguard? Etrade charges $19.99/trade. Etrade told me that there are no other annual fees besides what Vanguard charges.
  8. Thank you for all of the re-assurance. Does anyone have an opinion on the Vanguard High Yield Tax Exempt Fund (VWALX) as part of a portfolio?
  9. Greetings All - Sorry that it has been some time since posting. Over the last couple of years I have 1. Retired from teaching and then 2. Immediately became guardian for a relative with mental illness. Long story short we went from 1. Emergency Detention to 2. Hospitalization to 3. Guardianship to 4. Assistive Care. It was quite a process. There has been so much - More than could be imagined. Those that know me know that I contributed the maximum to a diversified mix of Guaranteed Account and Vanguard Index Funds in my 403b for over 35 years, stayed the course, and re-balanced annually. I have been rewarded due to this discipline - AND all the GREAT ADVICE and ENCOURAGEMENT from this blog. As part of the Guardianship, I am responsible for all of my relative's health/medical and financial decisions and well being. I am his only relative, and visit him weekly at the assistive care facility. During his working years, my relative was an accountant for his state, and extremely frugal. He lived very simply in a small apartment. I was shocked, surprised, and more than a little scared to learn that he had a portfolio of over $5M! His entire portfolio was invested in just 3, dividend producing, utility stocks. Originally, I figured I would just "let sleeping dogs lie" as he must have known what he was doing. All of that was great, and his dividend income easily covered all of his expenses. Yesterday, I was notified that one of the 3 companies he owned stock in was involved in a buyout, and that he would receive $2M for his stock in that company. What do I do with this $2M in cash??? My comfort level is with index investing, and I could continue to do that through his online account. He was successful investing in utility stocks - Continue doing that? We could invest it in the company that bought out his stock. Sorry that this is not exactly a 403b query. Please weigh in - As I highly value and respect your ideas and perspective. Many thanks in advance. Bill
  10. bk10s

    I Am Not A Market Timer....

    Ed - I have my daughter in the LifeStrategy Funds!
  11. bk10s

    I Am Not A Market Timer....

    I agree with Tony, Ed and others that you will reduce your fees by moving your 403b account to an IRA at Vanguard (assuming you use total stock and bond index funds). However if you made some changes in your 403b, you could reduce your current fees significantly, improve its diversification, reduce risk and duplication. In your OP you mentioned reducing your risk by moving some of the index fund money into the stable value fund. Instead of reducing the index funds, I would reduce Contrafund. It has had a spectacular YTD and this would be a good time to sell. I wonder if an asset allocation of 60/40 is more risky than you really want? Do you use the same AA in your Roth IRA? Ideally all your and your wife’s accounts should be considered all together. Let’s assume you want to remain in your 403b at least for a few more years and see what it could look like. Steve mentioned that the Total Stock Market fund has the advantage of including all 3 cap sizes, based on market capitalization. You can mimic the TSM fund by using the 3 cap sizes in the following ratio: VG Inst. Index (S&P 500), 81% VG Mid-cap Index, 4% VG Small-cap Index, 15% https://www.bogleheads.org/wiki/Approximating_total_stock_market Notice that you can omit the mid-cap index and just use the 500 index (82%) and the small-cap index (18%). Let’s use this approximation in this example. Let’s also assume that you want to reduce the risk in your 403b account and you’ve decided to move to a 50/50 AA. And that you want 20% of your stocks in international stocks. 20% of 50% is 10% international and 40% domestic stocks. 82% of the 40% is 33% large-cap domestic stocks. 18% of 40% is 7% small-cap domestic stocks. So your 403b at WEA could look like this: VG Inst. Index, ER=0.02%, 33% VG Small-cap Index, ER=0.05%, 7% VG Total Int’l Stock Mkt Index, ER=0.11%, 10% Pru. Stable Value fund, 50% (no ER ever supplied for SVFs) A 403b account similar to this is very broadly diversified, and certainly has lower risk than what you have now. The average weighted ER of the 3 index funds is 0.04% and is slightly lower than what is possible in a VG IRA. As mentioned in my previous post, the $300/yr admin fee adds to those very low ERs, but probably less than the 0.35%. Divide $300 by your 403b balance to get the actual percentage. krow36 - Love the simplicity of your suggestion. Thank you so much for your research. Like Steve, Ed, Tony, and others, I'm "all in" on low fees!!!
  12. bk10s

    I Am Not A Market Timer....

    Is it suggested that I move the Contrafund to Vanguard Institutional and the Fidelity Diversified to Vanguard Total International all at once? Or, a certain amount every month until the conversion is complete? As I looked back, I got into Contrafund when our 403b provider dropped Vanguard PrimeCap. Many thanks again for all of your great information. Bill
  13. bk10s

    I Am Not A Market Timer....

    My current portfolio is a mixture of 403b and Roth IRA. The Vanguard Total International is offered within the 403b. So, I would move the Fidelity Contrafund $$ into Vanguard Institutional and the Fidelity Diversified into Vanguard Total International. Can I just do it that way instead of the IRA? What is the advantage of doing the IRA? Obviously, I am missing something. Many thanks again - Bill
  14. bk10s

    I Am Not A Market Timer....

    Contrafund: Fees .68% Move into Vanguard Institutional?? Diversified Int'l: 1.05% Move into Vanguard Total International?? You got me. I have tried to be a champion of low fees. Going to be looking hard at this today. New Era was really good when the price of gas was going crazy! We get our funds through WEA Member Benefits: https://www.weabenefits.com/ All of these assets are within our 403b. I will check into the IRA plan you suggested, as I am not aware of how that would work. I am so thankful for this site. I like to think that I am kind of edumacated on this stuff, but we always have room to learn! I'll report back - Bill
  15. bk10s

    I Am Not A Market Timer....

    In my 60-40 split, here is the QTD, YTD, MTD, 3YR and 5YR. Overall portfolio performance so far this year is 8.3%. Prudential Guaranteed is 3.8% for the year. Fidelity Contrafund 12% 5.20% 22.84% 1.61% 37.97% 101.87% Fidelity Diversified Intl 8% 3.25% 20.06% -0.07% 14.01% 56.91% T. Rowe Price New Era Fund 4% 0.76% -1.63% -2.01% -10.53% 9.70% Prudential Guaranteed Investment 43% 0.59% 2.33% 0.29% 11.61% 20.49% Vanguard Inst Index Fund Inst Plus Share 11% 2.36% 11.91% 0.30% -- -- Vanguard Mid-Cap Index Fund Inst Shares 12% 1.15% 10.40% -0.58% -- -- Vanguard Small-Cap Index Fund Inst Share 10% 0.17% 5.93% -0.93% -- --
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