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Author: cymbeline Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75525  
Subject: Need help with plan Date: 9/1/1999 11:41 AM
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I have a plan but I would like some opinions.
Current situation:
I am a widow 53, with a son who just started high school. My salary is approx. 45K.
I am in the 403b contributing the max. It is worth 95K.
I started a Roth this year for 2000 FOOLISHLY with the Vanguard Index Fund.
Unfoolishly, I started accounts (when my husband died 10 yrs ago) with two full service houses. One has an IRA of ~80K of which 15K is cash, 45K is fairly new class B mutual funds, and 20K is a class A mutual. Some are doing almost index. I also have ~40K cash which is not IRA there.
The other broker has an IRA of ~ 45K which was in ANNUITIES (how unfoolish can you get). I just had them converted to mmarket. There is also ~55K non-IRA there in mutuals mostly class A and mostly not close to index.
My plan is: First open on line discount broker acct.
1. Transfer all of the previously annuity (45K), the IRA cash (15K), and sell the ICA mutual fund (which has been about 4.5% under the S+P for the last 4 years) of 20K. This total of 80K would be invested in the RP4.
2. Figure out what to do about the 45K in class B funds. It would cost to liquidate them but I am paying an IRA maintenance fee and about half of them are not doing great.
3. Worry about the non-IRA later.
I would appreciate any input, Thanks,
Fairly new but learning fast Fool
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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 13583 of 75525
Subject: Re: Need help with plan Date: 9/1/1999 11:52 AM
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You seem to be on the right track. The Foolish wisdom is move whatever you can to Foolish Four accounts or Index Funds until you have time to study the Foolish sources and decide on a better strategy.

Fool on!!

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Author: zgriner Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 13616 of 75525
Subject: Re: Need help with plan Date: 9/2/1999 10:36 AM
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Worry about the non-IRA later.
Since almost half your money is in cash, do the simple thing, put it somewhere temporarily. Go to www.vangaurd.com and fill out an application for their S&P500 index fund. Then fill out their transfer form, transferring all you non-IRA mutal fund money and cash into the index fund. While you still have to print the form and sign it, Vanguard will do all the work to get the mutual funds sold and transfer the moneys. You just fill out the initial paperwork.

Then, when you decide what next to do, it is another simple thing to get the money transferred again.

Zev

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Author: cymbeline Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 13659 of 75525
Subject: Re: Need help with plan Date: 9/4/1999 10:58 PM
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Thanks for the response. I have read several of your posts and you seem very sensible. You suggest that I move whatever possible to the FFour. I have seen recommendations that not more than 25 -30% be in the FFour and do other stuff with the rest. Right?
Also you suggest Index funds. Think it would be best to dump the very poorly performing funds and switch to index or to dump ALL of the funds (even though some of them are nearly up to index). If I put 80K in the FFour the rest of the IRA amounts to almost 50K-lots of eggs to put in one Index basket perhaps?
Again, Thanks

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Author: cymbeline Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 13660 of 75525
Subject: Re: Need help with plan Date: 9/4/1999 11:04 PM
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Enjoy your posts. Thanks for the input. You suggest putting all the rest (after FFour) in Index fund. This seems like too much in one place, no?

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Author: zgriner Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 13679 of 75525
Subject: Re: Need help with plan Date: 9/5/1999 10:56 PM
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You suggest putting all the rest (after FFour) in Index fund. This seems like too much in one place, no?

That really depends on you. Remember, the S&P500 index consists of 500 stocks, so it is diversified, by definition. It's really not 'one' investment. It is, however, a large-cap index, as opposed to a small- or mid-cap index. If you wish to diversify across asset classes, that is your choice. You may wish to consider other portfolios that TMF sponsors or tracks, or, perhaps, some of the Workshop portfolios.

Zev

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Author: Bob78164 Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 13719 of 75525
Subject: Re: Need help with plan Date: 9/6/1999 12:17 AM
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cymbeline writes:

You suggest putting all the rest (after FFour) in Index fund. This seems like too much in one place, no?

I reply:

Not as I see it. An index fund isn't one place, it's 500 (assuming you use the S&P 500). --Bob

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