Personal Investments • 401k transfer to SDA

Yes, you are a little bit "all over the place". But there is no rush because you have some time.

In addition, can we keep the Trad/Roth as is, or do we have to pay penalties when we rollover.

You can transfer your traditional IRAs and Roth IRAs with no penalties. Sometimes, there is an account closing fee. Whether you can keep the investments you have in these accounts depends on what is there and whether you can hold those things at the new custodian.

Or do we convert the Trad to Roth now, I know that's a whole another round of research.

Probably not now while working. This is usually best left to a time when your income is lower.

I called Vanguard (as my 401k) is with them. The "advisor" mentioned, if I take advantage of their Managed service, they will only do so with the current 401k and not include anything I transfer over. Which doesn't make sense.

That does not make sense and is probably some kind of misunderstanding. If you move your money to one of the Vanguard advisor services (there are now 3 levels), you can include as much as you want.


I don't understand how your Vanguard 401k is offering a Schwab PCRA. Is that what you actually meant to say?

...really looking at 4 "buckets" - Dividend ETF, Bond(HY and Intermediate), TIPs, and Cash.

Are you considering this for your entire portfolio after you retire? Why a dividend ETF rather than broad index funds? Why HY bonds (junk bonds)? Looks like you are looking for a way to "live off the dividends" rather than using dividends and harvesting gains both. Suggest you consider using a simple portfolio containing broad index funds and some good bond fund choices.

I think one of the first decisions to make if whether you want your portfolio managed or whether you want to do this for yourself. If you want an advisor managing your portfolio, Vanguard is the only one I can suggest because their advisors do not have a financial incentive to sell you anything. That is not true of Schwab or Fidelity.

If you wish to manage your money yourself, pick a place that has the website and services you prefer.

Maybe a first and intermediate step would be to move an IRA or two from your current advisor to one or even two of the custodians you are considering. See how you like their service and what they offer.

Statistics: Posted by retiredjg — Mon Apr 22, 2024 7:28 am — Replies 4 — Views 389

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