Thursday, November 8, 2012

Bogleheads ? View topic - New investor

Hello all, I am a new investor and just started employment three weeks ago. For now, I have my company's 401k contribution percentage to 20 percent. They already allocated 20 percent of my salary into my 401k retirement account and I'm looking to change that this week. I am also looking forward to opening a ROTH IRA account. I am very interested in maximizing the advantages of having a roth IRA. It will help me save big in the long run. Please help me figure out which funds in my 401k account should be added or deleted. I did not know much about the funds when I started out because I was looking forward to hearing from an investment advisor provided by the company. I am willing to change my company's 401k contribution percentage down to 10 percent and contribute 10 percent of my salary to my ROTH IRA.

Emergency funds: 6 months of expense
Debt: No debt
Tax Filing Status: Single
Tax Rate: 15ish% Federal, 5.75% State
State of Residence: VA
Age:22
Desired Asset allocation: 90% stocks / 10% bonds
Desired International allocation: 15% of stocks

Current retirement assets

Taxable
20% cash (for investing ? do not include emergency funds)
xx% fund name (ticker symbol) (expense ratio)
xx% stock company name (ticker symbol)

His 401k
43% 2050 Target Series Retirement 2050 fund (no ticket symbol - private) (.13%)
26% S&P 500 Index Fund(no ticket symbol - private)(.02%)
17% International Equity Fund(no ticket symbol - private(.11%)
15% CSC Stock fund(.00%)company fund
6% partial company match

His Roth IRA at Vanguard(Would like more information on this)
xx% fund name (ticker symbol) (expense ratio)
xx% fund name (ticker symbol) (expense ratio)

Contributions

New annual Contributions
$6000 his 401k (6% partial company matching contributions)
$5000 his IRA/Roth IRA

Available funds

Funds available in his 401(k)
DynCorp Frozen Stable Value Fund (Benchmark: Citigroup 3-Month Treasury Bill Index) (.45%)
Short Duration Fund (Benchmark: Bank of America Merrill Lynch 1-3 Year Treasury Index) (.17%)
Core Bond Fund (Benchmark: Barclays Captial US Aggregate Index) (.18%)
Government TIPS Bond Fund(Benchmark: Barclays Captial Inflation Notes Index)(.07%)
Active Allocation Fund(Benchmark: 65% S&P 500 Stock Index Fund/30% Barclays Capital U.S. Long Treasury Index/5% Citigroup 30 Day CD)(.33%)
S&P 500 Index Fund(Benchmark: S&P 500 Index)(.02%)
Active US Equity Fund(Benchmark: Russell 1000 Index)(.39%)
US Equity Completion Fund(Benchmark: Dow Jones 4500 Completion Index)(.02%)
International Equity Fund(Benchmark: MSCI EAFE Index)(.11%)
CSC Stock Fund(Benchmark: S&P 500 Index)(.00%)

Questions:
1. Since I'm new to investing and have a very highly aggressive and saving portfolio, I was wondering if I should just leave 100% of the money toward my 401k in my target series retirement 2050 fund for now? The CSC Stock fund and S&P 500 Index fund are the same. The reason why they're there is because I thought an investment advisor provided by the company was going to help pick out the stocks for me before my pay period but I guess not.

2. I would like to open a ROTH IRA this week and I think it would be better to add the international fund, small caps, and REIT fund in my new vanguard roth ira account? What funds would you suggest should be in my ROTH IRA?

Source: http://www.bogleheads.org/forum/viewtopic.php?f=1&t=105164&p=1526543

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