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GA teacher

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  1. Thank you so much for your help, krow36!
  2. Hmm.. Please help me understand. I was referring to transfer(?) or transaction fees within my 457 Valic account. I had 7-8 different funds and transferred the assets to VINIX within my 457. So the assets are transferred without any fees? If that's the case, I would feel so much better😂
  3. Thank you guys! I realized yesterday that I took steps without the big picture in mind... I totally moved funds around without thinking too much about the transaction costs and only thought of the money I may lose from the expense ratios which I did not know is an annual fee until minutes ago. I should've been more cautious and slow-moving. I'm thinking I may have lost like a couple thousand dollars in transaction fees of transferring around $100K these past couple weeks.. I'm definitely learning through my mistakes but with huge costs... Sigh... Thank you all for guiding me through and helping me learn. I'm going to call Valic advisor on Monday to see what the fees are with transferring to Schwab. Hopefully not too expensive 🙂
  4. Thanks guys!! I found out some more about this SDBA through Schwab representative: One can have both Valic and Schwab accounts 4300 mutual funds in their No-load OneSource service This plan only allows ONE SDBA acct so Valic will keep track of my pre-tax and post-tax accounts. Would this be confusing or be a hindrance in any way? Unless Valic requires to keep some money, all my accounts will be in one sdba account $100-$3,000 initial purchase fee for non-Schwab funds, subsequent purchases $1. So I should stay away from the non-Schwab funds? For Schwab funds, initial purchase fee and subsequent purchase fees are $1 https://www.schwab.com/mutual-funds/no-load-mutual-funds https://www.schwabfunds.com/resource/swtsx-fact-sheet: This is their Dow-Jones total stock market index. Should I be looking for an index fund with S&P total stock market instead? I moved all my funds to VINIX within Valic in my 457 account like 2 days ago. Would I have saved money on the individual fund transaction fees had I just transferred them to Schwab accounts? Thank you guys again for your help.
  5. Hi guys! I just called Charles Schwab service line to inquire about the self-directed brokerage acct. Below is what the rep told me. Please advise. I attached the fine prints on the bottom from Valic. 403b and 457 through Schwab is all mutual funds. No stocks. Enrolling in Schwab SDBA allows access to 5,000 more mutual funds to choose from SDBA is an extension of the Valic plan with the district. Valic is still the recordkeeper and Valic controls the fees. Schwab charges only the transaction fees. Schwab only holds assets for Valic. The following fees are representative of the fees associated with PCRA: Account maintenance fee: PCRA investors are assessed an annual account maintenance fee of $50.00 by VALIC. Transaction fees: Schwab charges transaction fees on some of its mutual fund offerings. Some funds may also charge sales and/or redemption fees. Standard fees apply on both transactions when placing simultaneous orders to sell one or more transaction-fee fund(s) and purchase additional transaction-fee fund(s) with the proceeds. No-Transaction Fee Funds (includes funds available through the Mutual Fund OneSource® service): Electronic Trade -- $0, Broker-Assisted Trade -- $25 service charge per trade may apply. Schwab's short-term redemption fee will be charged on redemption of funds purchased through Schwab's Mutual Fund OneSource service (and certain other funds with no transaction fees) and held 90 days or less. Transaction-Fee Funds: Electronic Trade -- $50 per buy, $0 per sell; Broker-Assisted Trade -- Electronic fee, plus $25 service charge per trade.
  6. That's such a clear explanation Tony. Thank you, and I'll definitely try reading investopedia.com.
  7. Thank you Ed for this example. I'm copying and pasting and replacing the answers 🙂 Basics Status: Single Emergency funds: 6+ months in money market/savings. Tax Bracket: 22% federal State of Residence: Georgia Age: 36 Current Retirement Assets Portfolio Size: $136,000 Asset Allocation: please see attached pics for more details*** Taxable: Traditional Accounts: Roth/HSA Accounts: Funds Available Taxable/IRA/HSA: NONE Employer 401k: NONE Contributions from last year = $23,832 (It was a bit hard to make this contribution last year so I decreased my contribution past couple months) Pre-tax 457: $11028 Roth 403: $11028 Pre-tax 403: $888 (created by mistake and stopped contributions) 457 ROTH: $888 (created by mistake and stopped contributions) Thank you for your help guys!!
  8. Whoa.. I just had a light bulb moment here Tony. So all of the funds I have are still "actively managed funds" except VINIX? I thought actively managed fund meant my portfolio was guided and managed by the Valic people.. I'm gearing toward opening IRA accounts: total bond and total international stock market and maybe exclude total stock market because I'll have so much of VINIX from my 457 and 403 accounts rather than opening the Target funds. I'll copy the Target fund allocations like ScottO does for his portfolio https://investor.vanguard.com/mutual-funds/profile/portfolio/vtivx in hopes that I can save more on the fees. Hopefully I'll be able to manage. Thank you for your encouraging words! I am in a better place already following your expertise 🙂 I truly appreciate all your help.
  9. I love this, Tony! I don't feel like being ganged up on at all. I'm learning so much 🙂 I like how you explained that Blackrock bond is not a diversified bond. Should I buy back Pimco or the Valic annuity within the same account or just start completely over with a new total Vanguard total bond fund you guys mentioned? I guess I did something foolish. Is it safe to list all those here? I want to share with you all but with general public I feel hesitant. This is my first forum setting... If you guys say that it's safe, I don't mind sharing.
  10. Below is the copy/paste info on Charles Schwab option. It sounds very daunting for me as it sounds it needs lots of actions on my part? I like the Vanguard IRA options you guys talked about before much better, but just wanted to check with you guys. Self-Directed Brokerage Account Schwab Personal Choice Retirement Account® (PCRA) is a self-directed brokerage account that allows participants to invest all or a portion of their Plan account balance in investment options available through a brokerage service. Participants enroll in the brokerage window by allocating contributions or exchanging other investment vehicles into PCRA. For a participant with no PCRA account, this activity triggers the automated PCRA account opening procedure. A written communication containing an informational brochure and a Limited Power of Attorney (LPOA) form is then sent by VALIC. The LPOA form should be completed by the participant and returned to Schwab. A “Welcome Kit” is also sent to the participant by Schwab. This kit contains instructional information regarding the new PCRA account along with the new PCRA account number. Participants can request activities on their self-directed brokerage accounts by speaking directly with a Schwab representative by calling 1-888-393-7272 or by using any of the following: Schwab.com, Telebroker® (touch-tone telephone) or Schwab by Phone™ (voice recognition telephone) services. Participants will receive confirmation of each transaction made to their account either by mail, or if elected, electronically via email. A monthly statement will also be generated. In addition to the detailed Schwab statement, the participant's aggregate balance in the self-directed brokerage account and confirmation information will be provided on AIG Retirement Services Information - Annual Participant Fee Disclosure 04/30/2020 30 of 34 01307 - 001 VALIC's quarterly account statement. The following fees are representative of the fees associated with PCRA: Account maintenance fee: PCRA investors are assessed an annual account maintenance fee of $50.00 by VALIC. Transaction fees: Schwab charges transaction fees on some of its mutual fund offerings. Some funds may also charge sales and/or redemption fees. Standard fees apply on both transactions when placing simultaneous orders to sell one or more transaction-fee fund(s) and purchase additional transaction-fee fund(s) with the proceeds. No-Transaction Fee Funds (includes funds available through the Mutual Fund OneSource® service): Electronic Trade -- $0, Broker-Assisted Trade -- $25 service charge per trade may apply. Schwab's short-term redemption fee will be charged on redemption of funds purchased through Schwab's Mutual Fund OneSource service (and certain other funds with no transaction fees) and held 90 days or less. Transaction-Fee Funds: Electronic Trade -- $50 per buy, $0 per sell; Broker-Assisted Trade -- Electronic fee, plus $25 service charge per trade. You can obtain more information about PCRA commissions and transaction fees by calling Schwab's PCRA Call Center at 1- 888-393-PCRA (7272), Monday through Friday, 9:00 am through 7:30 pm ET. Or, you can view the current Charles Schwab Pricing Guide for Retirement Plan Accounts on Schwab.com for a more complete description of all other commissions and transaction fees.
  11. Hmmm.. The colleague I wrote about is 29 years old. Maybe that's why his financial adviser put him in that "risky stock fund". I didn't think about our age difference (I'm 36) nor had the whole asset allocation picture when transferring funds. My sole goal of the initial transfer was to get out of my 50% allocation in bonds and rebalance. I'm reviewing this whole thread again which means more questions will be coming 🙂 Thank you for your replies Ed.
  12. Hey ScottO, I'm trying to review this whole thread right now. Would you be able to tell me why it looks like a garbage bond fund?
  13. Thank you very much, gentlemen, for your summaries of the finance world 🙂 I will definitely keep coming back to this them to remind myself and ask more questions. And sorry for the delayed thank-you; I've been kind of stressed about returning back to work and how everything will look like. So on Tuesday when transferring funds over, I was too scared and nervous to completely move over to VINIX (pic attached of my 457 pre-tax acct). All I did was to get out of Valic's fixed annuity and PIMCO as both were 50% of my assets before; now they are 0% and transferred to VINIX. I kept them in my 403 ROTH account because the asset % were much smaller and for the safety effect. I left Blackrock just because my colleague has that as his only "bond" option guided by his financial advisor 🙂 I also hesitated moving Amfunds Europacific because it was listed as International funds and thought I should keep an int'l fund? I should still take one more step and move everything over to the low-cost VINIX, right? I'm taking truly small and slow steps here due to my lack of knowledge and confidence.
  14. Thank you all so much for your help. It takes a day for the assets to be moved around within the Valic platform so perhaps I will get today's closing rather than yesterday's. It's assuring to hear that the timing of buying/selling doesn't matter since it's a long-term investment. The world of finance is very complicated but I think I understand a lot more than before where I understood zero 🙂 Thank you guys again for guiding me!
  15. Hi guys! I'm trying to move the assets to Vanguard's VINIX. I finally got out of the Valic's guided portfolio service. Should I move the assets to VINIX now or wait until tomorrow? I think I may be late because it's already almost 5pm ET? Did I have to do it before a certain time? It's my first time doing this so I'm unsure and a bit nervous because I'm trying to move a lump sum of money from other mutual funds into here. I got the analysis picture from finviz.com.
  16. I was watching a documentary series from EBS Korea. EBS is an education broadcasting station. I wish I can post it here but it's in Korean... It was a 5-hour series and covered much history and topics. The documentary covered John Adams and Kaynes vs Hayek and many more. I had to look up the quote and to find out who said it- MLK Jr. of course 🙂 It's so important to learn from history. A finance person from YouTube who recommended the above also suggested BBC's 2008 documentary, "Ascent of Money" (link to episode 1) Perhaps you already watched it 🙂
  17. Thank you MNGopher for sharing your strategy 🙂
  18. I just finished a documentary series on capitalism, and their conclusion about an ideal capitalistic society reflects what you wrote here, Ed 🙂
  19. Thank you both, ScottO and krow36, so much! I had to read and re-read your replies and still need much more practice in calculating and understanding fully, but I didn't want to delay saying how I much I appreciate all your help and thorough teaching. I didn't even know that we had such thing as "standard deduction" haha. I may have more questions after practicing the math, but thank you again, and I hope you guys all enjoy the 4th! Stay safe!!
  20. You are helping me so much, Tony! Thank you for your opinions. They are teaching me how to think financially 🙂 I definitely feel like we'll have higher taxes later in the future with all the federal help given during these unfortunate times. Would you be able to explain to me how much tax I'll be paying maybe like 20 years later if I earned over hypothetically 200k in a pre-tax account?
  21. Thank you for the calculator article. If I'm calculating correctly, I pay 17% in taxes combined state and federal. I basically did monthly tax amt divided by monthly salary amt. And I couldn't figure out the next steps in the calculator... I'm single and I make about 70k/yr. I just looked up 2020 tax bracket and attached it here. Does this mean if I put away (hypothetically) $30,000 in post-tax account, I will be in 12% tax bracket? And does that 10% in tax savings really make that much difference in the long run?
  22. Wow! Thank you, ScottO. It's nice to see the allocation that Vanguard uses for their Target Fund. What do you mean by "100% VINIX looks wild..."? Also, is "$6K/yr" the max for an IRA?
  23. 457 is with Valic. That's the only vendor we have. When I called the advisor today, he told me why I was getting out of the guided service and told me it was low cost. I told him 0.45% was too high of a fee 🙂 He didn't say anything after that. I definitely should ask for them for more diversified options.
  24. I called today to cancel the guided portfolio service. Today ended up being the last day of the 2nd quarter, so I'm hoping that they won't charge me for the 3rd quarter fee. They said it takes 1-3 business days for the cancellation of the service.. Hope it wasn't too late.
  25. My current balance in post-tax 403 account is about 22% of the balance amount I have in pre-tax 457. Which account should I be focusing on more or contributing more? I'm not sure if it will be better to let the bigger snowball grow more (in this case my pre-tax 457) or start focusing on the post tax account?
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