IRA Rollover

Archive for March, 2007

Question: Asset allocation and am I putting the right funds in my IRA/401K with the right amounts of stock and bonds?

My husband’s 401K is at Fidelity and it is 100% Fidelity Freedom fund. There is not much to chose from and the exp ratios are high. The freedom fund is .81%. His IRA is at Vanguard and he has the Total Stock Market, Total Intl Stock Market, Total Bond, Wellesley and Wellington. I want to get rid of the Wellesley/Wellington because their stock holdings overlap the Total Stock Market and just have the 3 funds (total stock, total intl and total bond) what do you think? Last question about my Trad IRA and Roth – should I rollover the traditional IRA to my Roth. The traditional only has 10,000 or should I just have two IRA’s?
What Vanguard funds do you recommend for a “Bear Market”

Answer: You may just want to put all your money in a Vanguard Target Retirement fund. It is invested in foreign and domestic stocks as well as bonds, and automatically readjusts more into bonds as you get older. See link 1.

To determine if your stock/bond asset allocation is appropriate, you might want to try the Vanguard quiz. It depends on your age and other factors. See link 2.

However, the 401k at Fidelity is more complicated, as I don’t know what funds at Fidelity you can invest in. Some of their Spartan and Index Funds have low expenses.

DANGER Not Knowing Answer to 401k|Rollover|401k|IRA|Plan Question!