Vanguard and other - what to choose to invest in?

[FiguringItOut]

I am in the process of consolidating several of my 401k and IRA accounts into Vanguard.

Right now I have about $70K in Rollover IRA and about $2K in Roth IRA - what should I invest it in?

So far my front runners are VTSAX and Vanguard High Dividend Yield ETF (VYM).  Should I diversify more?  Anything else you suggest I look into? 

I'm 40, only now starting my FI journey.  Overall NW is around $115K, ~$40K of it in cash.  I plan on moving at least half of my cash into Vanguard as well, probably split between tIRA, Roth IRA (need to wait and see what my MAGI will be first) and probably a portion into a non-retirement investment account.  I will also have another $67K added to my Rollover IRA within next 12-18 months (waiting for QDRO to process from my divorce). 

My current 401k, started in August, is with Schwab is is invested as follows:
65.00% VANGUARD 500 INDEX ADM
15.00% VANGUARD MID CAP INDEX ADM
10.00% VANGUARD SMALL CAP INDEX ADM
8.00%   VANGUARD TOTAL INTL STK ADM
2.00%   VANGUARD TOTAL BOND MKT ADM

I also started HSA account with PayFlex in Aug, only about $1.8K in it right now.  Will be maxed out by 12/31.  But PayFlex has only high fees investment options, lowest 3 are
0.15%    VSCGX    Vanguard LIfeStrategy Conservative Growth Investor
0.16%    VSMGX    Vanguard LifeStrategy Moderate Growth Investor
0.20%    VDAIX    Vanguard Dividend Appreciation Index Investor
Everything else is 0.4% and above.
Right now none of my HSA is invested, all sitting in cash.  What should I do with it?  Invest in the 3 funds listed?  Move my HSA to a different HSA account?  I looked at both links provided in this topic http://forum.mrmoneymustache.com/taxes/good-hsa-providers/  but still can't decide which HSA account is better. 

Any suggestions or words of wisdom?
Thanks

[GGNoob]

I'd look at all of your accounts as one and invest with a three-fund portfolio. Place those funds in the most tax-efficient manner possible.

Your funds would be:
VTSAX - Total US Stock Market
VTIAX - Total International Stock Market
VBTLX - Total US Bond Market

If you really don't care to rebalance yourself...a simple Vanguard Target Retirement Date fund will do. Just note, that they do cost a little more.

For the HSA, you could either use one of those LifeStrategy funds or consider moving to another HSA provider if you wanted some more cheap options. We use HSAbank.com ourselves and invest through the self-directed brokerage account at TDAmeritrade.

[rugorak]

http://jlcollinsnh.com/stock-series/

I am a big fan of all in to VTSAX. It is fairly safe to stay all in as long as you are in savings mode. It is what I do. I have an emergency savings fund that I can tap for emergencies/unplanned for costs (car repairs, house repairs, vet bills, etc.) but usually they are low enough I just reduce my savings for that month. So a normal month I would save 50%. But in a bad month it might be 25% (or at worse I had 1 month at 0) but then the next month right back up to normal. I don't worry much about the market as my FI date is still far enough out. Probably where you should be if you are just starting.

[Jeremy E.]

I'd throw it all in the S&P 500 fund and call it good, simple yet effective.

[FiguringItOut]

Thank you all.

I did some research and based on your recommendations this is what I came up with for my Rollover IRA:
US stocks   46%
Intl stocks   10%
US bonds   22%
S&P 500   22%

In this combo Intl stocks will have to be investor shares, the rest will be admiral shares.  However, once the rest of my rollovers is complete, hopefully soon, it will bump Intl stocks over $10K and into Admiral shares. 

However, my Roth IRA is very small, only $1,483.  It seems that all of the funds I look at (see above) have $3K minimum investment.  I was planning to only add about $700 to it at most in Feb/March 2016 once I figure out my split between tIRA and Roth IRA based on my MAGI.  The rest of the money I was planing to put into tIRA ( I believe I can just add funds to my existing Rollover IRA and not have to pen another tIRA account).

Should I instead add just enough to my exiting Roth IRA to get it to $3K so that it can be invested in S&P 500 or VSTMX and put the rest, $2,500 , into tIRA even though it will not be maximizing my tax deduction.  Then I can just fund both tIRA and Roth IRA now and not wait until Feb/March for my MAGI.

[rugorak]

US stocks   46%
Intl stocks   10%
US bonds   22%
S&P 500   22%

In this scenario you have overlap with the US stocks and S&P 500. Pick one or the other and go with it. I'd go with the US stocks as it will make you more diversified.

And is there any reason you are putting almost 1/4 into bonds? Are you retiring really soon or just a low tolerance for risk? I just ask because you potentially could lose out on some gains and require yourself to work longer.

However, my Roth IRA is very small, only $1,483.  It seems that all of the funds I look at (see above) have $3K minimum investment.  I was planning to only add about $700 to it at most in Feb/March 2016 once I figure out my split between tIRA and Roth IRA based on my MAGI.  The rest of the money I was planing to put into tIRA ( I believe I can just add funds to my existing Rollover IRA and not have to pen another tIRA account).

Should I instead add just enough to my exiting Roth IRA to get it to $3K so that it can be invested in S&P 500 or VSTMX and put the rest, $2,500 , into tIRA even though it will not be maximizing my tax deduction.  Then I can just fund both tIRA and Roth IRA now and not wait until Feb/March for my MAGI.

$3k is pretty normal. You may find a few funds that are only $1k though. Usually target date funds from what I have seen. As for whether to put it in Roth or tIRA that is a judgement call you need to make. Run the calculations to see what makes the most sense numbers wise and weigh what you want to do. Some like the fact you can remove Roth contributions at any time penalty free (contributions only, any gains you cannot).