Mini Case Study / Help get me out of cash!

[2dogs0kids]

So in my previous financial stupidity and inattention, I had not understood that "putting money in my IRA" did not automatically mean investing my money, and I recently realized that a bunch of my retirement $$ has been sitting in cash, about $20K of it for several years.  Big oops.  I am trying to figure out how to get it invested/allocated and I could use some help!

Current state of affairs:
Saving ~60% of income (know that I could use some improvement in areas like cooking at home, continue to read here for encouragement!)
Paying minimums on student loans after putting 20K down towards them earlier this year (I'm a physician, and I now have 70K @ 2.8%; previous advice on this forum was to stay at minimums since the interest rate is so low)
Maxing out retirement accounts with work - must go to Fidelity with limited options
   currently investing in Fidelity target-date mutual funds with 0.75% expense ratio
Putting additional savings after retirement accounts are maxed in Betterment for now

Looking to consolidate my current accounts at Charles Schwab and T Rowe Price into one Charles Schwab account for simplicity.  Trying to decide whether it is worth a) switch to Vanguard to manage all $ or b) use Charles Schwab but buy Vanguard funds. I am interested in input on this....  but for right now just moving to Charles Schwab.  I have already spent a few months trying to figure things out and it is time to get the cash working for me.  Don't want to keep delaying a few more months trying to open up a Vanguard account - but could be convinced that this needs to be an early 2016 project!

Current State:
Charles Schwab
  regular IRA: $5,500 in cash
  Roth IRA: $8,700 in cash; $2,500 in Schwab Target 2035 with 0.75% ER
  rollover regular IRA: $14,000 in cash, $13,500 in in SWTSX (Schwab Total Stock Market Index Fund)
T Rowe Price
  $21,500 invested in T Rowe Price Retirement 2045 (TRRKX) with 0.75% ER

My Plan:
move $21,500 from T Rowe Price to Charles Schwab
invest all cash from Charles Schwab
change allocations and get everything out of CASH:
  50% in SWTXS (Schwab Total Stock Market Index Fund, ER 0.09%, similar to Vanguard VTSMX)
  30% in Schwab International Multi-Cap Core ETF (SCHF, tracks FTSE Developed ex U.S. Index, ER 0.08%, similar to Vanguard VEA)
  20% in Schwab US Aggregate Bond EFT (SCHZ, tracks Barclays Capital U.S. Aggregate Bond Index, ER 0.05%, similar to Vanguard BND)

I'm single, not looking to retire super-soon but not particularly enamored of my job either, not saving for a house because I am perfectly happy renting at the moment, so trying to invest money that might otherwise go to a house at my age (33yo).

Do these allocations and funds seem somewhat reasonable?  I have spent months reading around in circles here, on Bogleheads, on the internet at large and I am trying to just make a decision instead of letting momentum keep me in cash, but I also don't want to screw anything up!

Thanks for all your help....

PS - if this really belongs in the "Investing" forum let me know and I will try to delete and repost!

[MDM]

My Plan:
move $21,500 from T Rowe Price to Charles Schwab
invest all cash from Charles Schwab
change allocations and get everything out of CASH:
  50% in SWTXS (Schwab Total Stock Market Index Fund, ER 0.09%, similar to Vanguard VTSMX)
  30% in Schwab International Multi-Cap Core ETF (SCHF, tracks FTSE Developed ex U.S. Index, ER 0.08%, similar to Vanguard VEA)
  20% in Schwab US Aggregate Bond EFT (SCHZ, tracks Barclays Capital U.S. Aggregate Bond Index, ER 0.05%, similar to Vanguard BND)

Looks good.  See also https://www.bogleheads.org/wiki/Three-fund_portfolio#Other_than_Vanguard.2C_Boglehead-style.  At a quick glance, it appears your bond ETF might overcome issues noted there about the Schwab option.  If so, you might make a comment in https://www.bogleheads.org/forum/viewtopic.php?f=9&t=18149.

[2dogs0kids]

Leave a comment on Bogleheads?!  I am definitely not smart enough / experienced enough for that :)

And in fact, if you are talking about this Note: "note should be taken that the Schwab Total Bond Market fund has experienced negative tracking error in relation to the Barclays Capital Aggregate Index"

I am not even 100% sure what that means - but it doesn't sound good, which is part of the reason I chose the ETF over the fund (and I think I just figured out today what the difference between an ETF and a mutual fund is, so there's progress!)

But thanks for the feedback!  Makes me feel more confident getting some of that money out from the "under the mattress" status...

[NextTime]

I think this happens to a lot of people.

For the first year to year and a half that I contributed to a 401k it was going directly into a money market fund as well. I knew nothing of finance back then and guess I assumed it was being invested for me.

Now many companies are doing automatic enrollments as well as selecting an age-based fund for new hires.

[ShoulderThingThatGoesUp]

Why not SCHB instead? 0.04% ER.

[2dogs0kids]

SCHB instead of SWTSX, I assume?

http://www.morningstar.com/etfs/ARCX/SCHB/quote.html
http://www.morningstar.com/funds/XNAS/SWTSX/quote.html

No reason why...  I guess the only differences are ETF vs fund and 0.04% vs 0.09%

I guess then 0.04% is better?  Is there any other sig difference?

This is why I post here - thanks!

[Kaikou]

so if i have an age based fund, I'm investing right?

mix of bonds and stocks, that's investing? :)

[regulator]

OP, you got it right.  Allocation looks fine and I think you will be happy with Schwab (who I have used for almost 20 years).  Their ETFs are fine options and very cheap, and I think Schwab offers much better service than VG.

A couple of questions:

- do you have a reasonably sized emergency fund?

- do you have a good, own occupancy disability policy?

[2dogs0kids]

Thanks regulator!

Great but expensive disability policy - I decided it was worth it...  Purchased it out of residency and didn't even have to get any medical testing or pay more because I'm female, which is nice!

Solid emergency fund - both a good chunk of cash (between 10-15K depending on where I am in my paycheck/rent cycle) and now some of it is in Betterment (8K) in a "safety net" account which is 50/50 bonds/stocks - enough to last me months.  I am trying to grow the Betterment component of it and keep the cash closer to 10K so that I can let my money be working for me!