Author Topic: Vanguard Wellington fund for backdoor Roth  (Read 1325 times)

clara_sophia

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Vanguard Wellington fund for backdoor Roth
« on: September 22, 2017, 11:54:02 AM »
Hi All, I am thinking of opening an IRA and doing the Roth conversion.  Currently I do not have an IRA.  I was talking to a financial planner I am friends with about this and he suggested the Vanguard Wellington fund would be ideal for this investment.  I have done some research and the fund looks good but wanted to get the great insight of people here.  Thanks!

dandarc

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Re: Vanguard Wellington fund for backdoor Roth
« Reply #1 on: September 22, 2017, 12:14:16 PM »
1.  Are you sure you need to do a backdoor Roth IRA?  There are some advantages to using regular contributions if you are eligible.

2.  Wellington is fine, but if you're going with Vanguard, why not their index funds, most of which are cheaper?

3.  You can most likely do this on your own.  Be careful if your friend tries to get you to hire them.

clara_sophia

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Re: Vanguard Wellington fund for backdoor Roth
« Reply #2 on: September 22, 2017, 01:38:53 PM »
I am above the income threshold which is why I am considering the backdoor option.  I also am trying to think ahead to a time I may want different buckets to draw money from based on tax treatment.  I have a maxed out 401K and a taxable brokerage account invested mostly in VSTAX.  I saw a step by step guide of doing this so once I decide what investment I want to hold I feel comfortable I can do it without paying anyone to do it for me.  Thanks for your helpful thoughts. 

Mr Mark

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Re: Vanguard Wellington fund for backdoor Roth
« Reply #3 on: September 22, 2017, 11:29:16 PM »
I think Wellington is a solid sleep well at night fund, being about 65/35 equity bonds. Yes it's actively managed and expense ratios are higher that pure indexes like VTSAX but it's not crazy costly because it's so big.