Author Topic: Need Mutual Fund and Asset Allocation Advice  (Read 1921 times)

britri3650

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Need Mutual Fund and Asset Allocation Advice
« on: June 05, 2013, 10:46:14 AM »
My wife and I are in our mid-40s. Together we've got about $325K saved for retirement. Not great, I know. But I need advice on how to make my asset allocation more efficient.

I've got about $200K in my Thrift Savings Plan (TSP) curently allocated pretty evenly among the F fund (govt., corporate and mortgage-backed bonds - matches performance of the Barclays Capital U.S. Aggregate Bond Index), the C fund (large and medium US companies - mimics S&P 500), the S fund (small and medium US companies - mimics Dow Jones US Completion TSM Index), and the I fund (stocks from 21 developed countries - mimics Morgan Stanley Capital International EAFE Index).

I also have some money in Roth and Rollover IRAs at Fidelity, invested in Fidelity Contra Fund, Dodge & Cox Intl. Stock Fund, and Royce Value Plus Service Class (RYVPX).

My wife has a Roth IRA and SEP IRA invested in T Rowe Price Mid Cap Value Fund, Vanguard 500 Index Fund, Oppenheimer Main Street Class A (MSIGX), Oppenheimer Discovery Class A (OPOCX) and Oppenheimer Global FD Class A (OPPAX).

First, should I look to consolidate and reduce fees by rolling over my IRAs into my TSP? Second, should I keep any of the mutual funds I listed above, or just move the money into index funds across the board?


Johnny Aloha

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Re: Need Mutual Fund and Asset Allocation Advice
« Reply #1 on: June 05, 2013, 11:41:09 AM »
Second question - yes, I would move the money into all index funds.

First question - not sure if you can do this, but if you can, then maybe.  Since the TSP now has a Roth counterpart, this could make sense.  Expense ratios are much lower and you could manage all retirement accounts with one login instead of many. 

Before you roll into TSP, I'd suggest you research the early withdrawal rules.  It's easy to reclaim your contribution from a Roth IRA penalty free.  Not sure the same is true with TSP.


britri3650

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Re: Need Mutual Fund and Asset Allocation Advice
« Reply #2 on: June 05, 2013, 02:16:44 PM »
Thanks for your feedback. In addition to Roth IRAs, I have traditional IRAs. Is it a no-brainer to roll these traditional, tax deferred IRAs into my TSP given the really low expenses of the TSP vs. all other mutual funds? Or will I miss out on better investment options by doing so (i.e. ETFs, REITs, commodities) since the TSP doesn't invest in these sectors?