Long time reader, first time poster. Glad that I finally registered, this forum has been a great resource for me. I'm wondering what you guys would do in this situation (see below) in regards to IRA vs. 401k distribution, as well as other mutual fund options. In January, I will be starting a new job, and will have to decide what to do with my funds.
Here is the current status:
25 years old
$40k annual income, about to increase to about $60k (cost of living will increase)
$12.5k in various stocks--almost entirely safe stocks like BRK, ABT, etc.
$30k in my 401k. This is in the Vanguard Target Date 2055, with a cost of 0.07%
$250 each ($750 total) in a municipal bond fund, a traditional Growth fund, and a Roth Growth Fund that isn't offered to the public at a cost of less than .2%. Opened this up to ensure that I will always have it, as it will not always be available to me. Haven't touched it in over 6 months since it was opened.
$1.5k in cash to my name
Would like to be buying a house within the next 1-2 years
My new employer has a KSOP plan. Not sure on the details, other than the match is $0.50 on the dollar for the first 6%. The bad part? The 401k portion is run through Principal. I don't know much of the details right now, but I would assume I cannot get a Vanguard index fund with it.
My current plan:
Leave the old 401k as is. I won't be able to find any costs that low, and I am happy with the funds that it is in.
Put in at least 6% into the new KSOP, and possibly more depending on the options. I doubt I will be maxing it out, and I doubt I will put in more than the match.
Max out a Vanguard Roth IRA
After that... What? Start putting money into those mutual funds detailed above (Don't have the prospectus in front of me, sorry)? Vanguard Traditional IRA? I'm planning on leaving the stocks alone until I sell them for a down payment on a house, but that isn't set in stone.