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Ottakee

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Posts posted by Ottakee


  1. Before I started working for the schools I looked for a FEE ONLY advisor that I could pay for 1-2 hours of time to get me started on the right course.  They are almost impossible to find.  Even ones that advertise as fee only want you to move all of your money under them, etc.  I honestly never found someone experienced that I could pay for 1-2 hours of advise.  I just wanted to know if my plans for my vanguard funds was reasonable and if there was anything I was missing.

    Hopefully someone will start doing this more.


  2. 3 hours ago, krow36 said:

    I think your proposal makes sense. Hopefully you can sell in your brokerage account without having to pay any (or not much) capital gains tax? If your income plus any capital gains don't push you out of the 12% bracket, your capital gains will be taxed at 0%.

    If you're currently contributing to the brokerage account for retirement, instead I would max out the 403b before adding to the taxable account.

    Is the 0.45% administration fee the same for each of the 6 vendors in the Consortium? I don't think the 0.45% admin fee should influence you decision to max out the 403b account, or to go Roth on half of your contribution. 

    The capital gains plus my income shouldn't push me out of the 12% bracket.  I just can't do it in 2019 because they won't have been invested in for over a year for some of the funds.

    Why should I max out the 403B first?  They will both be taxable but my private account can be accessed at any time with no penalty and right now I am already in the lowest tax bracket. 

    The 0.45% is the lowest out of any of the 6 vendors.  The rest are 1-1.5% and most of their offerings have higher expense ratios.


  3. Coming back here again.  I just got the MRIC (Michigan Retirement Investment Consortium) fees and expense report card Friday.

    My Midwest Capital Advisors with their 0.45% asset fee is the best there is for me right now.  They also offer Vanguard funds so I can at least chose very low expense ratio funds.
     

    Right now I am investing almost $7000/year into my 403(b) account which is a Vanguard target retirement.  I am also maxing out my personal ROTH account directly through Vanguard.

    My question comes in that I have a sizeable amount in a brokerage account directly with Vanguard.  Would there be an advantage to selling some of that to live on and then putting a corresponding amount (say $7000/year) into a ROTH 403 account?  The advantage I see is that right now, I am in a very low tax bracket and that would move my money towards a tax free account for retirement when my taxable income will likely go up.  The con though is that I would have to pay that pesky 0.45% fee on top of the Vanguard fees I am already paying now.  Any thoughts on this?


  4. 23 minutes ago, EdLaFave said:

    I think it is useful to address some deeper more fundamental questions than just the ones you asked.

    If the vendor is charging 0.5% on top of whatever they’re charging for the funds, this isn’t a very good plan. So it would be in your best interest to identify every 403b and 457b vendor your district has approved. Some states have state sponsored 457b plans that are relatively good and sometimes great. Come back and post your options and I can give some further guidance.

     

    It is the best they offer.  I know it isn't the best but still better than my other options.  We only have a few vendors to chose from.


  5. Thanks. I do have access through my 403B to the Target date funds as well as the Life Strategy Funds....and the  VTSAX, VTIAX.  Is it really advantageous to "to it myself" over a Target Fund or Life Strategy Fund to save the small amount in expense ratio?

    I see myself being more risky for the next 5 years or so and then dialing down the risks as I am starting from zero in this account and I have other money I can access earlier if needed.

     


  6. I am a new school hire (but a previous public school employee).  I have an old pension plan from the schools that started in 1989 that I will continue contributing to.  I also have a ROTH IRA and personal investments through Vanguard.

    I need to figure out the best funds to put my 403(b) into.  It will amount to about $6500/year but is starting from scratch.  The management company charges 0.50% plus any expense ratios from the funds I chose.  No other annual fees, etc.  They offer quite a few Vanguard funds to chose from including Target retirement funds, VTIAX, VTSAX, VBLTX, VFIAX, and many others.  They also offer some actively managed funds.

    How do you chose the best ones?  Since I have other retirement savings, I do have the ability to take on a bit more risk but yet I will be accessing the funds starting in 15-20 years.

    What % of stocks vs. bonds should I look for?  Is it better to "do it yourself" with the much lower expense ratios of the individual funds, or just pick a higher expense ratio of a 2035 or 2040 target fund?

    I will be fulling funding my ROTH IRA as well and there are other reasons why I need to put the money into a 403(b) for now vs. other investments.  I just need some guidance on the best funds to look for.

    Thanks.

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