The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: NiaHopeFire on February 05, 2019, 08:55:20 AM
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Ok, I have been "retired" for 3 days now from MegaTelco Corp. I am 49 y/o, 4 courses away from a Master of Info Sys and not ready to go fishing or start gardening. I will take a break living off of severance and rental income.
My 401K ($576K) is with Fidelity with a small Trad. IRA ($4,500). I have 2 pensions ($367K, $134K) and am preparing to do a lump sum pension rollovers. I will purchase large cap dividend payers to generate income. Initially, I will reinvest the dividends, but have those dividends distributed to me if I don't unretire myself in the next 1 1/2 years.
My question is would you rollover both pensions to my current brokerage Fidelity or rollover the largest to Fidelity and open up a Vanguard IRA to make a purchase of a "buy it and forget it" fund like VTSAX with the smaller pension? I am comfortable self directing my portfolio, but wanted to weigh the success of VTSAX versus what I could do for myself.
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I can't advise you on where to roll over your money. But I can tell you that Fidelity's FSAX fund is equivalent to VTSAX as they are both Total Market Funds.
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OP: Note that SIPC coverage is limited to $500k per account type. Relevant depending on how paranoid you are.
https://www.sipc.org/for-investors/investors-with-multiple-accounts
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"Both" only makes sense if you are worried about SIPC - otherwise it needlessly adds complexity
Vanguard is client-owned, which I like.
Fidelity has managed to offer the same funds at marginally lower fees.
Coin flip. Either will work.