Author Topic: Asset Allocation  (Read 1084 times)


  • 5 O'Clock Shadow
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Asset Allocation
« on: January 04, 2021, 04:49:34 PM »
Hi all. Iím wondering if thereís an optimal way to set this up.

Age 57. All expenses covered by pension.
Current Rollover IRA balance $300,000. Invested in Vanguard Wellington Fund.
Current Roth IRA balance $100,000. Invested 10% VBTLX, 70% VTSAX, 20% VTIAX.

Trying to figure out the best way to implement a 3 year conversion plan prior to the sunset of the TCJA.
Plan is to convert $20,000 per year from the Rollover IRA to the Roth in 2023, 2024, and 2025. Then set it and forget it (aside from an occasional rebalance) until age 72.

What are the pros and cons to the following 2 options?
1 - leave the Rollover IRA in the Wellington fund and invest the conversion in the ROTH funds to meet the desired AA?
2 - exchange the Wellington fund into the 3 index funds and invest the conversion in the ROTH funds  to meet the desired AA?
3 - something else I havenít considered?

Many thanks!


  • Pencil Stache
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Re: Asset Allocation
« Reply #1 on: January 05, 2021, 11:11:30 AM »


  • 5 O'Clock Shadow
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  • Location: Midwestern Frozen Tundra
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Re: Asset Allocation
« Reply #2 on: January 09, 2021, 07:08:04 PM »
90% stock in Roth IRA is still a strong signal that you are intending to have it as a growth portfolio. I can see how you would still be leaning to at least 10% low risk. You could consider a low risk ETF, or maybe even an emerging technologies fund (Solar/TAN) especially with the new administration which has a reasonable upside. Just a thought.


  • Handlebar Stache
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Re: Asset Allocation
« Reply #3 on: January 10, 2021, 06:16:42 AM »
If you are interested in lower volatility, give Ray Dalio's All Seasons (aka All Weather) Portfolio a Google. We've been using it for five years or so and have been very happy with the results given our situation and goals.