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Everything posted by tony

  1. I've noticed you last visited this site about 14 hours ago and I hope you are well. We miss your comments. Hope to hear from you soon. Hope all is well with you. Best wishes Tony
  2. If i may add. The plethora of actively mutual funds out there, even Vanguard's, are to bring in revenue through fees. At least, Vanguard's managed funds are almost as cheap as their index funds and much cheaper than most others.. Most managed funds are just variations of the same companies. If you own the Total Stock Market Index, An International Fund index fund and a Total Bond Market Index fund, you pretty much own the stock universe. It's all you need. These guys loading you up with many funds are not improving your performance long term. It's easy to assume that stock funds with fancy names might be better. They are not. Any out performance by these funds is usually short term. They'll hype those returns but they will never tell you that overtime barely only 20% of these funds beat a basic index fund. And good luck finding these outperformers year after year out of thousands of choices. Stick to index funds.
  3. GA Teacher Don't drink the kool aid that it is complicated. The financial complexity is mostly intentional and deliberate . That way there is a demand for their services. They make money by making you feel stupid and keeping you in the dark, draining you of your money long term with various fees. When you own a few index funds at lowest possible cost you are covering the total market and minimizing your long term risk. Keep reading and you will see what a facade the financial industry really is. I recommend you buy and read this book https://www.amazon.com/Little-Book-Common-Sense-Investing/dp/1119404509/ref=sr_1_3?crid=2QAY7445XKKWY&dchild=1&keywords=bogle+little+book+of+common+sense+investing&qid=1594235911&sprefix=bogle+%2Caps%2C313&sr=8-3 Please keep asking questions, you seem like someone who wants to learn and grow on this subject. We are here to help. We sometimes go off the deep end here but you can learn a lot about investing by reading through our discussions and sometimes arguments.:) Tony
  4. If you do it now you will get today's closing. If you do it after the markets close you will get tomorrow's closing. Just do it anytime you want. Even after hours.No need to be nervous at all. The market fluctuates daily. You might get in when it closes high or you might get in when it closes lower. In the scheme of things it won't matter . What's important is that you pull the trigger and get that money over to VIINX. I would ignore charts like the one you posted. It tells you only what happens daily. You are in this for the long term and daily stock gains and losses per stock means nothing. Congratulations on making a positive , smart move. Tony
  5. tony

    YTD Report

    Steve, you are a true renaissance man! Enjoyed reading through your blog. The bobcat pic was cool. The wasps not so much.I too love salads and grow a garden every year. We feel very confined at the moment but we are following all CDC protocols and wearing masks but unfortunately even mask wearing too has fallen into the realm of politics . Hard to find yeast in our stores lately so no bread baking here although my parents baked all their own bread (no bread machine)so your blog brought back memories. The statue destruction and other violent acts I'm seeing i can't condone and it's deeply depressing . I think some need a better thought out historical perspective. It's shameful to destroy and remove art in the manner that is occurring in my opinion. Better to lobby locally, peacefully for changes. I too remember the 60's so you mentioning it helped me feel more optimistic about the future. Maybe something good will come out of all this. I just hope we are prepared for the next pandemic. There didn't seem to be any plan in place and we had been warned something like this this could happen years ago. Tony
  6. Pure B.S.!! He just dropped a load of manure on you. It's happened to many of us here at one time or another. Don't fall for it.
  7. Get rid of this guy. You can do it yourself. You will learn along the way. Even if you feel unsure of yourself , at least you won't be giving this person a slice of your retirement money for basically doing nothing except maybe occasionally rearranging your funds. Overtime his presence "managing" your accounts will cost you thousands of dollars in fees. They don't do all that much managing. They are salespeople first and formost. Does valic allow you to make changes to your accounts yourself online? I would pick a basic Vanguard portfolio and manage it yourself. We can help you with any questions along the way. The Key to success is simplicity, low fees, diversification, and consistent saving regardless of the ups and downs of the market.Keep your emotions out of it. Stick with your goal. Your 403b manager does nothing you can't do yourself. You will outperform his so called "expertise" if you follow our guidelines. Transferring an IRA is simple and Vanguard can help you. Tony
  8. tony

    YTD Report

    YTD, I'm down 1.4% . Pretty much how I started the year. I'm grateful and satisfied considering the multiple Traumas we are currently going through. I've been considering lately leaving the country and living in Italy. I have to convince my wife though and currently I'm not getting anywhere so I doubt it will happen. The last few months has been very disturbing to me . Maybe i just need to turn off the news.
  9. GA Teacher, Ga teacher Wow I missed that completely .If that's true that you have that access to a Charles Schwab brokerage account than that may very well be your ticket to the diversifying funds you want and need as Ed mentions. On another note I can't believe Ed wants to pay more taxes. I think I know where Ed is coming from but unfortunately our government doesn't spend our money wisely.
  10. GA Teacher It's pretty much up to you to decide how to proceed. Like I said previously, I like the idea of having my retirement money free and clear of the tax man upon retirement if for nothing else knowing the money is all mine. Paying RMD 's can't be fun and I'm not looking forward to it. When I started out, pre tax was my only option. Later down the road when post tax options became available I went 100% in. So I have both and I'm retired now . I also have some taxable accounts. I like the flexibility of having different types of accounts. it is impossible to know the precise direction of future tax rates, but you can look at the present for some clues to the future. High deficits and high levels of national debt suggest possible higher taxes in the future. If you believe taxes are likely to be higher in the future and I do , you might want to lean more toward a Roth or after tax account , because that plan allows you to withdraw money tax-free when you retire. However, there are some strong advocates for going 100% tax advantaged too. I'm jus offering a personal opinion. Hope this helps..
  11. tony


    I'm not at the age that I have to worry about RMD's yet but that is a good question to search on the IRS website. https://www.irs.gov/site-index-search?search=RMD&field_pup_historical_1=1&field_pup_historical=1 Here is an article that might/might not help. https://www.schwab.com/resource-center/insights/content/can-you-forgo-taking-rmds-2020
  12. Nothing wrong with owning both pretax and post tax in your accounts each has its advantages. I've read so many contrary views as to which is better that when I was working I just contributed to both. Some will say tax advantaged is better but I don't know that for sure. Some on the other hand say post tax is better. I like the flexibility of owning both but if I could do it again I'd probably go 100% post tax so i wouldn't have to worry about RMD taxes when I turn 70 but that is just a personal observation and open to discussion. You might not be able to escape the administrative fee but you should get rid of the guided portfolio service. that's a huge rip-off. I don't see that as a problem considering your limited low cost choices in this valic plan. You could further diversify however by also opening an IRA and taxable account and add the additional funds I mentioned. However depending on the the underlying investments in your pension plan you might be fine just going 100% VINIX. You need to get out of that. Pay the surrender fee if there is one and move your assets straight over to VINX. At your age I would tilt more to moderately aggressive instead of moderately conservative, meaning more stocks than bonds at this stage of your life. You can get more conservative as you get closer to retirement. 50% in a fixed income situation is too much at your age . I say this under the pretext of not knowing what the market will do in these strange times we are living through. Still you are a good ways away from retirement so investing in a stock fund more than bonds and fixed accounts makes more sense. My only further advice is do not let your Valic rep talk you out of doing what we are advising you to do here. There is really only one good choice in your plan and that is the VINX fund. The others aren't terrible but the fees will eat into your returns over time quite significantly. I learned that the hard way unfortunately, many years ago. LOW FEES MATTER!!
  13. I have to wonder why VALIC has different funds in its plans when you go from district to district and plan to plan. I wish they would at very least standardize their offerings across the board. That at least would give them, if done right a better reputation. I've seen some Valic administered plans that have enough good choices to get a good low cost mix of funds. This plan is lacking in adequate index fund choices.
  14. Hi GA Teacher The only fund that I see that the group here would probably recommend and like is the Vanguard Institutional Index which is similar to the Vanguard 500 Index. It's a very good deal expense ratio wise and a decent fund. Other choices border on being a bit high in expense ratio for our panel of experts.One thing you could do is put a good bit of money in the Vanguard Institutional Index as in a 403b or 457b and use an IRA account and or maybe a taxable account outside of your employer planto further diversify your account while keeping your fees very low. A typical diversified account using Index funds that we recommend here looks like this: Vanguard Total Stock Market Index Or Vanguard 500 Index (plus 10% in a Vanguard Extended Index Fund) Vanguard Total International Index Vanguard Total Bond Market Index So, you could in addition to the 403b or 457b investment in The Vanguard Institutional, you could max out your IRA fund which allows you to pick any fund company you wish, which would be Vanguard and you would pick the Vanguard Total International, Total Bond ,and Extended index in varying amounts to diversify your portfolio. The other option is possibly do the T .Rowe Price Target Fund. It's fully diversified and if you had to go with a managed fund choice because of lack of options, you could do worse than TRPrice. I knew a teacher that only owned the Vanguard Institutional Fund and was completely satisfied with its performance even though he was aware that he wasn't diversified across assets classes, so you could just invest in that one fund and be fine and avoid the higher fund fees altogether. One good choice is better than no good choices. Hope I helped. I didn't look closely at other details of your plan so I will let others comment on going 457b vs 403b . Regards, Tony
  15. Oh so she I guess is talking about her state teachers pension plan and not a 403 b. So is she saying she has to wait until 62 to get her full pension amount? I know in Virginia there is no such hard and fast rules. After 30 years regardless of age you get full pension but you can retire early at a reduced rate. and you are vested in after ten years.
  16. I deleted my comment about writing checks using a money market account. I agree with Krow not to have cash in an IRA. I mean't to say you could open a money market account outside of the IRA in a taxable account and use that for extra cash and write checks from it in emergency situations. You could use it as your emergency fund .
  17. I would not assume you are getting services for free. I've been told that too. Wasn't True. I would not listen to friend recommendations trying to help their buddies out . You must look after yourself and only yourself.Dump the whole portfolio and transfer it directly over to Vanguard. .When you get Vanguard through other sources, like through intermediaries, you are likely paying more for it. American funds is expensive. Go 100% vanguard and I suggest you duplicate the funds we all mentioned above. Trust me. I've been through this. Investing is a a dirty little business if you don't know what you are doing. Tony I've transferred assets over to Vanguard so I can help you the specifics of the transfer. Since its an IRA its a simple matter of filling out paperwork and contacting Vanguard. They will do the rest.
  18. Actually Actually heather you don't have to get to 62. I believe its all yours at 59.5 unless your contract says differently. Anytime you leave a job you can also usually move your assets to a new plan if you wish.
  19. Hello again. Yes, I am Aiken School District. Also, I am almost 48. I left NY after 17 years. I am still vested there but I cannot draw from that retirement fund until I am 62 (I believe).
  20. CTVA Teacher Henrico county here in Virginia is a "suburb" of Richmond Va. about 1.5 hours from me. Compared to other schools around here Henrico has a fairly decent offering if you chose correctly. I agree with what others are saying and more people concurring should make you feel reassured that we are giving you good advice. The Vanguard Funds as mentioned are all you need. I would not use the target funds offered in your plan because they are not the best choice and not worth the expense. Those other funds you show are overkill and not needed. What are you investing in your IRA? You do realize you can transfer it over to Vanguard at any time too? you could as an option pick the same funds there that you might use in a 403b/457b now or in the future. Simplification is always a good idea. Take it from me I use to own many moons ago 28-30 funds!! Thanks to so called "advisors"
  21. Ed, I'm glad you pointed that out. I failed to look at the 403b choices and fees. I went straight to the 457b saw index funds and just figured the 403b would be an inferior offering. It's not. Chances are since both are administered by Valic, the administrative fees might be the same.
  22. Watch Out. I don't know who your 403b manager is but I'd skip that meeting and go with the 457b plan as recommended by ScottO and me. I worry who you will meet is going to steer you to funds that may not be in your best interest. Go 457B in your school system and stick to the funds we recommended. They are very low fee and good funds. Over my years as a teacher I have seen these so called managers often steer teachers into higher fees products. Also there is no guarantee your so called 403b manager even knows what he/she is talking about. You can trust Scott's recommendations . You can also trust mine.
  23. Scott just echoed my comments and gave you a slightly different allocation. Both are o.k We both agree on the funds. You are good to go. Most folks go heavier on international than i recommended but i'm not crazy about going hog wild in that category.
  24. I live in Virginia. You have a State 457b plan available to teachers that has very good funds and very low fees that rivals Vanguard. Henrico county is not far from where I live. A better one than you have in your plan but yours has some good underlying fund choices despite Valic's administration You could just do the IRA thing since you don't think you will be exceeding its limits. What are you investing in? But if you ever want to go further you could do these funds in your 457b account.The fees are good for the Vanguard Funds listed here. Vanguard International index 20% Vanguard Institutional Index 55% Vanguard Extended Index 10% Vanguard Total Bond 15%
  25. Welcome CTV I think we first need to see what other choices you have available to you in your 403b plan. Please list the complete list. From there we can give you more guidance. An IRA has advantages and disadvantages. You can pick the funds you want and the fee you want. You have no limitations except the amount you can put into them each year. The 403b allows much higher contribution rates. We suggest very low cost index funds usually through Vanguard or Fidelity. I personally like Vanguard's target market funds or Vanguard Life strategy funds. It certainly makes sense to max out your IRA , just make sure you have a good asset allocation and dirt cheap index funds. Incidentally both the Vanguard Target and life strategy funds are totally comprised of index funds so one fund and you are done. Something to consider. I hope i've helped some and please list you 403b choices. Tony OOPs I just reread your post. You only have Valic? By chance do you have a 457b plan ? Could you list the Valic fund choices at your disposal please? If you don't intend to ever invest more than IRA contribution limits than I would just forget the 403b considering its limitations. However down the road you may wish to contribute more so why not push for better 403b choices. I write this not knowing your age. Hope to hear back from you.
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