UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next
Author: 2old4bs Big red star, 1000 posts 10+ Year Anniversary! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76237  
Subject: Re: Retirement investing for Mom Date: 4/6/2004 10:30 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I have noticed that their "financial advisors" retain a $75 fee even for no-load mutual fund transactions so I'm considering rolling this traditional IRA into a Scottrade or similar online brokerage Roth IRA

Is that $75 a transaction fee, or an annual fee? In either case, it's ridiculous. If most of the holdings will be mutual funds you might be better off opening an account with Vanguard directly. Since the total amount will be over $50,000, as I understand it, you will be able to avoid the $10/year fee for each fund with less than a $10K balance. I am not that familiar with Scottrade, but according to other posters here, they do not charge a transaction fee on Vanguard mutual funds (you'll have to check this out).

My thoughts are to invest the Roth IRA into 25% growth and income, 25% growth (including possible index funds), 25% large-cap Intl funds, and 25% in agressive growth and include the total of 85K in this investment plan...I'm planning on keeping about 20K (outside of the 85K) in the "investment savings" account for cash access in the event immediate needs arise, so the 85K should be able to sit long term.

The portfolio allocation sounds a bit aggressive to me. If it were me, I would prefer 50% in a Total (domestic) Index, 15-20% in Total international index, 10-15% in REIT, 10-15% in small/mid-cap index, and no more than 5% in aggressive growth. Also, in your allocation there is nothing in bonds--usually it's recommended that 20% of a total portfolio be held in bonds to reduce the risk exposure of a total stock portfolio. If you were to put something in bonds, I would only recommend short-term bonds at this point in time. Just MHO. You will find good info on index funds and portfolion allocation on the index fund board here at TMF.

http://boards.fool.com/Messages.asp?mid=20576489&bid=100111

You also don't mention how the "investment savings" is invested. Is it just a savings account? Is is in a taxable account, or an IRA? You might look for a vehicle (like an ING money market account) where you're getting the best return you possibly can on that 20K without risking it in equities.

Irene
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Saul's Investing Discussions

Why Did I Buy a Bunch of PFIE Today?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement