My Rollover Fidelity IRA:
$31k SPRTN TOTAL MKT INDX INVESTOR CLASS (FSTMX) 0.10%
$15k FIDELITY DIVERSIFIED INTERNATIONAL (FDIVX) 0.98%
$13k SPTN INTER TREAS BND INVESTOR CLASS (FIBIX) 0.20%
$6K FIDELITY REAL ESTATE INVESTMENT (FRESX) 0.90%
My John Hancock 401k:
(new job, haven't received available funds yet, but I will be putting in 10k / year no company match)
Question 1:
I have about $10,000 or more to invest, not sure where. My tax braket is too high for a roth, and I'm eligible for a 401k so not sure about a traditional IRA. I'm guessing I should do a taxable account. I saw the post on different types of investments, and which are more tax efficient. Should I be putting this 10,000 in to a taxable account?
Question 2:
Any advice on my ira portfolio, I kind of went with what was suggested and figured I'd change once I have some guidance.
Thanks everyone very much.
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Pennstateclj1
Joined: 03 Apr 2011 Posts: 45 Location: Saint Diago, CA
Posted: Fri Sep 02, 2011 5:16 pm?? ?Post subject:
Hello and welcome to the forum,
Thanks for posting in the preferred format!
Unless you're in a job that offers student loan forgiveness, I think that guaranteed 6.5% return on $4900 looks pretty attractive. That leaves $5100 leftover you might use to supplement your take home pay while trying to max your 401k (depending on fees and ER of funds) contributions $16,500 annually. You should try abs max it given your high state and federal tax scenario.
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achan
Joined: 02 Sep 2011 Posts: 2
Posted: Fri Sep 02, 2011 5:19 pm?? ?Post subject:
Pennstateclj1 wrote:
Hello and welcome to the forum,
Thanks for posting in the preferred format!
Unless you're in a job that offers student loan forgiveness, I think that guaranteed 6.5% return on $4900 looks pretty attractive. That leaves $5100 leftover you might use to supplement your take home pay while trying to max your 401k (depending on fees and ER of funds) contributions $16,500 annually. You should try abs max it given your high state and federal tax scenario.
Thanks, I tried to follow the guidelines! That'd a good call, I'm not sure why I'm hanging on to that loan. Any input on those fidelity mutual funds? They seem pretty basic allocations index fund, international fund, reit, and bond. Is that acceptable giving I only have about 65k total at this point? I thought slicing up to small/mid/large cap sectors might be overkill with the little I have in my IRA at this point.
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Pennstateclj1
Joined: 03 Apr 2011 Posts: 45 Location: Saint Diago, CA
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retiredjg
Joined: 10 Jan 2008 Posts: 9405
Posted: Fri Sep 02, 2011 5:48 pm?? ?Post subject:
Welcome to the forum! You really cannot make a plan without knowing what is offered in the 401k.
For your rollover IRA, I would not use anything other than Spartan Funds because they have such low expense ratios. This places you in the position of having no emerging markets though - so you have to forgo EM, pay 1.14% (really high but offset by the low cost of the Spartan International Index) or hold your international at Vanguard. But again, this has to be choreographed with your 401k so don't do anything on that just yet.
As has been mentioned, you should probably not invest retirement money in a taxable account unless you are already filling your 401k. So use some of that money to fill your 401k unless the choices are just horrible. And certainly use enough to pay off that high interest loan.
When you find out about the 401k, more help can be offered. _________________ Link to Asking Portfolio Questions
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PaddyMac
Joined: 09 Jul 2010 Posts: 383
Posted: Sat Sep 03, 2011 1:23 pm?? ?Post subject: Re: Portfolio feedback and non-taxable investing
"My tax braket is too high for a roth,"
Your tax bracket does not determine whether you qualify for a Roth, your Modified Adjusted Gross Income does. For many years I took that to mean my taxable income and didn't do a roth. Then I realized I did qualify once I understook what MAGI meant. So are you sure you don't qualify?
One way your could qualify is to reduce your AGI by saving to a 401k too.
for MAGI, see
http://www.fairmark.com/rothira/modagi.htm
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Bob's not my name
Joined: 15 Nov 2009 Posts: 2895
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