Author Topic: What IRA would you put $25k into?  (Read 1818 times)

IamDavin

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What IRA would you put $25k into?
« on: April 09, 2015, 03:13:50 PM »
I have a IRA with New York Life through my employer.

After ten years I have finally started to learn enough (thanks to you guys and this site) to be dangerous  :).  I have learned that the fund I was in has a 0.97% expense ratio!

WHoa!  I know.  And all these years they were spouting off their great low fee funds they negotiated. 

So after reading here I have discovered Vanguard with IRA ER averages of .18%.  So when I did the math with my numbers; I would end up paying roughly $100k more in fees over 30 year span.

I have about $25k I can transfer now (they only allow us to take a certain amount out at a time) and I will slowly transfer all that I can over time to another low fee account.

Looks like I can do IRA transfers.  Twice per year from New York Life.

I do not want to start a war here.... BUT can you give me some guidance on some options?

 Are there other companies that would be better options for a IRA? 

If Vanguard is the best option.. what fund to get started in?

https://investor.vanguard.com/mutual-funds/vanguard-mutual-funds-list

Should I transfer into a bond fund like VBLTX.. and as the market comes down start adding stocks?

Or just get into a target date fund.. or life strategy....etc..




« Last Edit: April 09, 2015, 04:48:30 PM by IamDavin »

MDM

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Re: What IRA would you put $25k into?
« Reply #1 on: April 09, 2015, 03:17:10 PM »
Or just get into a [Vanguard] target date fund.
That's my default advice for getting started.

SuperSecretName

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Re: What IRA would you put $25k into?
« Reply #2 on: April 09, 2015, 03:19:09 PM »
vanguard and a target retirement date fund are the best answer.

IamDavin

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Re: What IRA would you put $25k into?
« Reply #3 on: April 09, 2015, 03:47:48 PM »
Thanks for the quick responses!

I am hoping to retire early.  I'm 31 now.. and want to be FI no later than 40.  How does that play into which target date fund I choose?

Would I choose the fund target for when I'm 40 or 60 years old?  Do most people not touch these accounts until they are 60 to avoid any early withdrawal fees..and strictly live their FI lifestyle through other sources of passive income?

This would seem like the answer.. but just want to be sure since I'm still a newbie around here. Not sure if there is a way others use account like this to retire early.  I would like to avoid that.. but if it means working full time 2-5 years less and not too big of hit long term.. I would consider adding it into my plan for use.

My current plans for FI are to invest my savings into real estate and stocks and let this IRA build up on the side since its included in our wage package.
« Last Edit: April 09, 2015, 03:51:48 PM by IamDavin »

SuperSecretName

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Re: What IRA would you put $25k into?
« Reply #4 on: April 10, 2015, 07:06:53 AM »
for now, choose the 60 one.  40 one would be getting too conservative.  when you get closer (or are more comfortable with deciding proper asset allocation), reevaluate.