Author Topic: Do these numbers look right to you guys?  (Read 4226 times)

MrD

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Do these numbers look right to you guys?
« on: July 25, 2012, 02:17:36 PM »
401k

RUSSELL 3000 Index - 27%
S&P 500 - 31%
NTGI COLL EAFE International Index - 22%
NTGI AGGR BOND INDEX - 20%

ROTH IRA

100% in the 2050 retirement by Vangaurd

Does this seem like a pretty solid balance? My plan is too max out the Roth IRA every year and contribute at least 20% a year to the 401k.

unitsinc

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Re: Do these numbers look right to you guys?
« Reply #1 on: July 25, 2012, 02:28:26 PM »
I'm not educated enough to discuss your allocation, but unless 20% of your income covers 17k, then you need to alter your percentage to get the max allowed.

MrD

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Re: Do these numbers look right to you guys?
« Reply #2 on: July 25, 2012, 02:31:48 PM »
I'm not educated enough to discuss your allocation, but unless 20% of your income covers 17k, then you need to alter your percentage to get the max allowed.

You are saying I should contribute the max for 401k? I guess I could do that I just need to see where I am at. I just recently bought a house.

unitsinc

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Re: Do these numbers look right to you guys?
« Reply #3 on: July 25, 2012, 02:42:49 PM »
From my relatively limited knowledge, by hitting the max(17k this year) you lower your taxes by the largest amount, and keep more of your invested money sheltered from future tax penalties and other such things that effect a normal brokerage account.

I know someone more knowledgeable than I will pop up here shortly and explain it better than I can.

grantmeaname

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Re: Do these numbers look right to you guys?
« Reply #4 on: July 25, 2012, 07:54:29 PM »
Figure out how much money you can afford to invest. Then here's the hierarchy:
  • Contribute your 401k to your full employer match (a few percent)
  • Contribute $5k to a Roth or traditional IRA
  • Go back and fill up your 401k. This is the $17k unitsinc mentioned
  • Contribute anything to a regular brokerage account

edit: yeah, I know, I didn't discuss the asset allocation. That's just the vehicles.

MrD

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Re: Do these numbers look right to you guys?
« Reply #5 on: July 25, 2012, 08:49:52 PM »
Figure out how much money you can afford to invest. Then here's the hierarchy:
  • Contribute your 401k to your full employer match (a few percent)
  • Contribute $5k to a Roth or traditional IRA
  • Go back and fill up your 401k. This is the $17k unitsinc mentioned
  • Contribute anything to a regular brokerage account

edit: yeah, I know, I didn't discuss the asset allocation. That's just the vehicles.

This is essentially what I am doing, I am more worried about asset allocation. Currently I think the ones I have selected for my 401k best represent a bogle type investment strategy where as my roth ira is simply a target date fund. I wanted to get some opinions if this sounded reasonable. Also whether or not my select funds for the 401k make sense.

sol

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Re: Do these numbers look right to you guys?
« Reply #6 on: July 25, 2012, 09:14:35 PM »
We can't say anything about your asset allocation without seeing those numbers as percentages of your whole, or knowing the dollar amounts.

If your 100% L2050 in the Roth is the same dollar amount as the four funds in your 401k, then you're at 74/15/11% USstocks/bonds/international, which is probably fine for someone who is young and risky and has a long time horizon, but only you can say if it's right for you.

If you're maxing both your 401k and your Roth for a total of 22k/year, then the percentage distribution will obviously be different, skewing towards the more conservative.

MrD

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Re: Do these numbers look right to you guys?
« Reply #7 on: July 26, 2012, 05:48:39 AM »
We can't say anything about your asset allocation without seeing those numbers as percentages of your whole, or knowing the dollar amounts.

If your 100% L2050 in the Roth is the same dollar amount as the four funds in your 401k, then you're at 74/15/11% USstocks/bonds/international, which is probably fine for someone who is young and risky and has a long time horizon, but only you can say if it's right for you.

If you're maxing both your 401k and your Roth for a total of 22k/year, then the percentage distribution will obviously be different, skewing towards the more conservative.

Good point.

I am 22.

Roth - 5k
401k - 10k