Author Topic: Newbie that is interested in Vanguard...  (Read 1967 times)

purple monkey

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Newbie that is interested in Vanguard...
« on: April 18, 2015, 05:49:43 PM »
Hi there,
I have about 150K IRA that is in a private managed account with CFP.
She takes 1% a year and the last two years after the commission, I have made about 5% a year.
So I am pathetic.
I moved my money into this account, as I had multiple 401K accounts from 3 different jobs in the last decade.
So, I want to do Vanguard.
My full retirement year will be between 2025 and 2030.
Any percentages or funds that you like at Vanguard?
TIA

Kernel Fielding

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Re: Newbie that is interested in Vanguard...
« Reply #1 on: April 18, 2015, 05:57:46 PM »
Vanguard Target Retirement 2030 Fund (VTHRX)

https://personal.vanguard.com/us/funds/snapshot?FundId=0695&FundIntExt=INT

See if you do an in-kind transfer if you can (not rollover). Otherwise, convert to cash before the transfer.
« Last Edit: April 18, 2015, 06:01:26 PM by cuthbert »

forummm

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Re: Newbie that is interested in Vanguard...
« Reply #2 on: April 19, 2015, 07:51:48 AM »
You didn't say what you're invested in now, and if there are any fees to sell. Since it's in an IRA, you won't have any tax consequences for liquidating whatever you own. Generally I would just cash out and rollover. I don't know why you'd want to do an in-kind transfer. The they are the kind of funds that charge you a fee to sell, you probably don't want to own them anyway.

Target Retirement is a reasonable choice. If you're going to be younger than 65 in 2030 you might want to pick a fund with a later target date.

Kernel Fielding

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Re: Newbie that is interested in Vanguard...
« Reply #3 on: April 19, 2015, 11:12:05 AM »
Good point about in-kind transfers, especially since the OP seems to want Vanguard funds rather than holding on to current investments.

But transfers are less hassle than rollovers (none of the stress of waiting for the check, and then mailing it to the new IRA provider, nor 60 day timeframe which the IRS requires). The IRS also limits you to one rollover in a year - there's no such restriction for transfers.

https://investor.vanguard.com/account-transfer/transfer-ira
http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Rollovers-of-Retirement-Plan-and-IRA-Distributions
http://www.irs.gov/Retirement-Plans/IRA-One-Rollover-Per-Year-Rule

seattlecyclone

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Re: Newbie that is interested in Vanguard...
« Reply #4 on: April 20, 2015, 09:01:35 AM »
The one-rollover-per-year rule only applies to the type of rollover where the old IRA provider makes out a check to you, you cash the check, and redeposit the money into a different IRA. The 60-day window also only applies to this type of rollover. There's no restriction on the number of rollovers where the check is made directly to the new IRA provider (with your name as the beneficiary), nor is there any particular time limit on completing the transaction (though quicker is usually better).

If Vanguard will charge you significantly less to sell your current funds than your current provider will, do an in-kind transfer. Otherwise liquidating makes sense.