Poor Publix employee seeking 401k investment advice - no longer have Publix stock

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grabiner
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Re: Poor Publix employee seeking 401k investment advice

Post by grabiner »

ralphboy wrote: Fri May 20, 2022 2:00 pm
grabiner wrote: Thu May 19, 2022 8:59 pm It's pretty common that there are days the US market is down and the foreign markets (RERGX=American Funds EuroPacific Growth R6) are up. A diversified portfolio, either with a target-date fund or with separate US and foreign funds, reduces the risk of holding whichever market is doing worse.
RERGX has a .45% expense ratio (Or something close to that); so I'm unsure if I should invest in it. For my Roth, I am debating between the 2055 and 2060 target date fidelity index funds.
It doesn't make sense to use target-date funds in one account and individual funds in another account. The advantage of target-date funds is simplicity: you don't need to worry about keeping the correct allocation. But if you have individual funds elsewhere, your allocation will still change with market moves.

Thus, it makes more sense to hold your international as Fidelity Total International Index in your Roth (or an equivalent fund or ETF from another provider), as this is less expensive than REGRX. You can hold only US stock and fixed income (bonds or stable value) in the 401(k).
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Re: Poor Publix employee seeking 401k investment advice

Post by ralphboy »

I'm thinking just stay the course of 75% S%P/ 25% Publix stock [and sell my portion of RERGX when it goes up to $70/share] in the 401k. I think I will choose the Fidelity Target 2055 Index Fund for my Roth. I'll be 65-67 in 2051-2053, so I think it is the best date for me?
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Re: Poor Publix employee seeking 401k investment advice

Post by grabiner »

ralphboy wrote: Sat May 21, 2022 9:15 am I'm thinking just stay the course of 75% S%P/ 25% Publix stock [and sell my portion of RERGX when it goes up to $70/share] in the 401k.
It doesn't make sense to time the market like this. Whether you should hold or sell REGRX is a serious question, but if you should sell it because you have a better investment option, you should sell it now.
I think I will choose the Fidelity Target 2055 Index Fund for my Roth. I'll be 65-67 in 2051-2053, so I think it is the best date for me?
What matters is your overall allocation, not the allocation of your Roth IRA. If you take more risk in your Roth IRA and less in your 401(k), or hold all your foreign stock in your Roth IRA and none in your 401(k), this doesn't hurt you.

Thus, if the allocation of the 2055 fund is right for you, and you hold that in your Roth IRA, then you should have the same allocation, such as by holding a balanced fund in your 401(k). This might be a fine strategy, using the State Street Aggressive Strategic Balanced fund in your 401(k); the brochure you linked says that this fund has 0.02% expenses and is 88% stock.
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Re: Poor Publix employee seeking 401k investment advice

Post by backpacker61 »

grabiner wrote: Sat May 21, 2022 6:29 pm
ralphboy wrote: Sat May 21, 2022 9:15 am I'm thinking just stay the course of 75% S%P/ 25% Publix stock [and sell my portion of RERGX when it goes up to $70/share] in the 401k.
It doesn't make sense to time the market like this. Whether you should hold or sell REGRX is a serious question, but if you should sell it because you have a better investment option, you should sell it now.
I agree with grabiner.

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Re: Poor Publix employee seeking 401k investment advice

Post by ralphboy »

Here are my fund options and the expense ratios:

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Re: Poor Publix employee seeking 401k investment advice

Post by grabiner »

ralphboy wrote: Sun May 22, 2022 8:39 am Here are my fund options and the expense ratios:

Image
Thanks for posting this, with the expense ratios. This confirms that either of the two strategies I recommend would be a low-cost option.

With all balanced funds, put the 401(k) in State Street Aggressive Strategic Balanced (0.08% expenses) and your Roth IRA in a target-date index fund such as Fidelity's.

With individual allocations, hold US stocks in the S&P indexes (0.02% expenses), fixed income in the stable value fund (the expenses are not the main issue here, as the stable value fund has less risk than a bond fund of comparable yield), and international stock in your Roth IRA; the Roth IRA can also hold more US stock if it is larger than your target international allocation.
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Re: Poor Publix employee seeking 401k investment advice

Post by JOEVANDAL »

OP, keep up the good work. You are doing really well and should be proud of yourself. You are on your way to financial stability, unlike the majority of Americans.
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Re: Poor Publix employee seeking 401k investment advice

Post by ralphboy »

grabiner wrote: Sun May 22, 2022 9:06 am
ralphboy wrote: Sun May 22, 2022 8:39 am Here are my fund options and the expense ratios:

Image
Thanks for posting this, with the expense ratios. This confirms that either of the two strategies I recommend would be a low-cost option.

With all balanced funds, put the 401(k) in State Street Aggressive Strategic Balanced (0.08% expenses) and your Roth IRA in a target-date index fund such as Fidelity's.

With individual allocations, hold US stocks in the S&P indexes (0.02% expenses), fixed income in the stable value fund (the expenses are not the main issue here, as the stable value fund has less risk than a bond fund of comparable yield), and international stock in your Roth IRA; the Roth IRA can also hold more US stock if it is larger than your target international allocation.
I have about 20% of the portfolio in Baird Bond fund, think I should switch to the invesco stable value fund?
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Re: Poor Publix employee seeking 401k investment advice

Post by ruralavalon »

ralphboy wrote: Mon May 23, 2022 8:44 am
grabiner wrote: Sun May 22, 2022 9:06 am
ralphboy wrote: Sun May 22, 2022 8:39 am Here are my fund options and the expense ratios:

Image
Thanks for posting this, with the expense ratios. This confirms that either of the two strategies I recommend would be a low-cost option.

With all balanced funds, put the 401(k) in State Street Aggressive Strategic Balanced (0.08% expenses) and your Roth IRA in a target-date index fund such as Fidelity's.

With individual allocations, hold US stocks in the S&P indexes (0.02% expenses), fixed income in the stable value fund (the expenses are not the main issue here, as the stable value fund has less risk than a bond fund of comparable yield), and international stock in your Roth IRA; the Roth IRA can also hold more US stock if it is larger than your target international allocation.
I have about 20% of the portfolio in Baird Bond fund, think I should switch to the invesco stable value fund?
I suggest sticking with Baird Aggregate Bond for your fixed income allocation. It's still a good choice.

The State Street S&P 500 index fund is still a good choice for investing in U.S. stocks.

American Funds EuroPacific Growth is still a good choice for investing in international stocks.

Stay the course.
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Re: Poor Publix employee seeking 401k investment advice

Post by grabiner »

ralphboy wrote: Mon May 23, 2022 8:44 am
grabiner wrote: Sun May 22, 2022 9:06 am
ralphboy wrote: Sun May 22, 2022 8:39 am Here are my fund options and the expense ratios:

Image
Thanks for posting this, with the expense ratios. This confirms that either of the two strategies I recommend would be a low-cost option.

With all balanced funds, put the 401(k) in State Street Aggressive Strategic Balanced (0.08% expenses) and your Roth IRA in a target-date index fund such as Fidelity's.

With individual allocations, hold US stocks in the S&P indexes (0.02% expenses), fixed income in the stable value fund (the expenses are not the main issue here, as the stable value fund has less risk than a bond fund of comparable yield), and international stock in your Roth IRA; the Roth IRA can also hold more US stock if it is larger than your target international allocation.
I have about 20% of the portfolio in Baird Bond fund, think I should switch to the invesco stable value fund?
You would have to check the terms of the stable value fund. If it offers the yield of an intermediate-term bond fund without interest-rate risk, then it is a better investment than a conventional intermediate-term fund such as Baird.
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Re: Poor Publix employee seeking 401k investment advice

Post by ralphboy »

I still don't know what to do since I am receiving differing advice and I am not able to make a confident decision on my own :D . Still unsure if I should buy international in my 401k, stick with baird or switch to invesco, what % if any to invest in Publix, and overall allocation in 401k. I believe I will go with the 2055 target date in my roth, so maybe I should just choose the aggressive balanced in my 401k? If yes, still unsure if I should go 100% in it for my future allocations or still invest money in Publix stock. I figure I would move the balances from baird and rergx once they go back up in value. I really hate to sell for a loss. I feel like I keep going in circles trying to come up with a plan.

Not sure if this helps with switching to Invesco stable trust or not:

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Re: Poor Publix employee seeking 401k investment advice

Post by ruralavalon »

The crediting rate for Invesco stable trust is just 1.42%, not high enough to be a good choice in my opinion. I do not suggest using this fund.

In my opinion the Aggressive Balanced fund in your 401k account would be a reasonable choice to go along with the target date fund you use in in your Roth IRA. That keeps everything simple and easy to manage.

A combination of the three funds I mentioned earlier (State Street S&P 500, American Funds EuroPacific Growth, Baird Aggregate Bond) would also be a reasonable choice for your 401k account.

Just pick one or the other for your 401k, both are good choices. Don't spend much more time agonizing about that. Once you decide on one or the other just go ahead and switch over both the existing balance in your 401k and new contributions. Don't wait around for anything to come back, just get it over with.

I see no particular problem with holding Publix stock, as long as it is a relatively small part of your portfolio (up to 10-15%).
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Re: Poor Publix employee seeking 401k investment advice

Post by Lionel Hutz »

I think you should choose a Target Date Fund and then throw away the key.

Absent that, go with ruralavalon's suggestion: SS 500 index, AF Europacific growth, Baird bond. Then also throw away the key.

Seriously, constantly tinkering with one's investment portfolio is not a recipe for success. Set your allocation, stick with it, and tune out the noise and news.
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Re: Poor Publix employee seeking 401k investment advice

Post by suemarkp »

With Bogleheads, you always get conflicting advice. The most important thing is putting money away and putting away as much as you can. What you put it in doesn't make as big of a difference unless it is horrid (huge fees, not diversified, or a market niche that can drop like a rock). So don't fret about your choices.

If you leave the bonds in long enough, they will make up for the negative returns, and you are buying low now since bond prices are falling. As much as I like Stable Value funds right now, yours isn't yielding that much. True, it isn't losing, but bond losses aren't losses if you hold long enough. That being said, I always had 50% of my bond allocation in stable value funds throughout my career until recently where I moved it all to stable value. But I just retired and focused more on preservation than gain for that bond portion. My Stable Value fund has moved to just over 2% yield and will probably be increasing slowly.

What I don't like with target date funds is their expense ratio is higher than buying the pieces yourself. They also have a habit of changing the percentages between stocks and bonds not because of age but for other reasons. I've been surprised how much more equities are in all the target date funds now compared to 5 or 10 years ago. Even the target retirement fund is a bit stock heavy for me with most choices (many are around 50/50 to 60/40). It doesn't take much to rebalance your asset allocation once a year to where you want it instead of letting these target funds do it for you. If you don't know what asset allocation to choose, you can always look at the target date fund for your year and see what percentage of stocks versus bonds they are using and just follow that. But you may want more or less bonds.
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What accounts should I put my investments in?

Post by ralphboy »

[Thread merged into here --admin LadyGeek]

I have a 401k, brokerage account, and a Roth IRA.

My 401k options are:
Image

I was considering either a two-fund (Fidelity Total Market Index Fund (FSKAX) and Fidelity U. S. Bond Index Fund (FXNAX)), three-fund portfolio (Fidelity Total Market Index Fund (FSKAX), Fidelity Total International Index Fund (FTIHX), and Fidelity U. S. Bond Index Fund (FXNAX)), or a 2055 target date retirement fund (FDEWX).

I looked at the "Tax-efficient fund placement" boglehead wiki and I think I have an idea of what to do; but figured I would get confirmation on here. I would like your advice on where I should place a total market index fund, international index fund, bond index fund, and target date fund. Just to confirm; "taxable account" = brokerage account, "tax-free account" = roth, and "tax-deferred account" = 401k?

I was advised in another thread to move my investments from my brokerage account to my roth. Is there a good reason to do this?
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Re: What accounts should I put my investments in?

Post by raizar29 »

The taxable brokerage account is where you want tax efficient investments, like a total stock market index fund or an international stock index fund (you also get to benefit from foreign tax credit on dividends). Everything inefficient like bond funds can go in tax deferred or tax free accounts (same tax efficiency either way). You can also have the tax efficient investments in the tax sheltered accounts, since your first priority should be maxing your tax sheltered accounts and proper asset allocation.
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Re: What accounts should I put my investments in?

Post by backpacker61 »

ralphboy wrote: Sat May 28, 2022 8:49 am I was advised in another thread to move my investments from my brokerage account to my roth. Is there a good reason to do this?
You can't really "move your investments" from your brokerage account to a Roth account. What you can do is gradually wind down a taxable account by withdrawing from it and then contributing the cash to fund the Roth IRA each year (if eligible). You can contribute $6000 to the IRA each year, plus an extra $1000 "catchup contribution" per year if you are over age 50.

The reason to do this is that you will not owe taxes on the funds when withdrawn.

Although you might be better off contributing to a normal "traditional" IRA instead, and benefiting from the tax deductibility in the year you make the contribution. The consideration is very complicated; read the Boglehead wiki for a detailed discussion.

https://www.bogleheads.org/wiki/Traditional_versus_Roth
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Re: What accounts should I put my investments in?

Post by ralphboy »

So, Brokerage account = Total market and International and 401k = bonds? What should my roth have in it?
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Re: What accounts should I put my investments in?

Post by retiredjg »

ralphboy wrote: Sat May 28, 2022 8:49 am I have a 401k, brokerage account, and a Roth IRA.

My 401k options are:
Image

I was considering either a two-fund (Fidelity Total Market Index Fund (FSKAX) and Fidelity U. S. Bond Index Fund (FXNAX)), three-fund portfolio (Fidelity Total Market Index Fund (FSKAX), Fidelity Total International Index Fund (FTIHX), and Fidelity U. S. Bond Index Fund (FXNAX)), or a 2055 target date retirement fund (FDEWX).

I looked at the "Tax-efficient fund placement" boglehead wiki and I think I have an idea of what to do; but figured I would get confirmation on here. I would like your advice on where I should place a total market index fund, international index fund, bond index fund, and target date fund. Just to confirm; "taxable account" = brokerage account, "tax-free account" = roth, and "tax-deferred account" = 401k?

I was advised in another thread to move my investments from my brokerage account to my roth. Is there a good reason to do this?
I think you are going about this from the wrong direction.

It appears you have picked funds and are trying to fit them into your accounts. That's backwards. You see what is available in your least flexible account (usually the work account) and build the rest of the portfolio around that.

A portfolio model that works in many situations is...

taxable
total stock
total international

401k
500 index
(international, sometimes)
bonds

Roth IRA
US stock (more 500 index and/or extended market index)

Every situation is different, but this model (or a variation) works for most of them and also accommodates most contributions of new money.

It appears that you are trying for a two fund or three fund total market portfolio. Those are good choices, but it is not important to have exactly those funds. For example, the 500 index alone or the 500 index plus extended market index can be used instead of total stock index.

Also, you should not be using a taxable account for retirement money until you are able to fill both of your tax-advantaged accounts (the 401k and the Roth IRA). And spouse's accounts (if you should have one) should be included too.
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Re: What accounts should I put my investments in?

Post by backpacker61 »

ralphboy wrote: Sat May 28, 2022 9:12 am What should my roth have in it?
The asset class you expect will grow the most should go in your Roth; typically 100% equity.

I would put fixed income investments in the pre-tax 401(K) (some mix of the Stable Value, Baird Bond fund, or you could use one of the State Street balanced funds) to get your fixed income exposure. The State Street funds appear to be the cheapest to own.
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Re: What accounts should I put my investments in?

Post by ralphboy »

My goal is to have all of the money be used as retirement money. Since I can only contribute to my 401k with my income; should I just sell my brokerage account investments and fund my roth with it?
I would put fixed income investments in the pre-tax 401(K) (some mix of the Stable Value, Baird Bond fund, or you could use one of the State Street balanced funds) to get your fixed income exposure. The State Street funds appear to be the cheapest to own.
My 401k is currently 60% S&P, 20% International, and 20% bond; would it be better if I moved all of those balances to the balanced fund instead? Looks like that would solve my issue of the high expense ratios for my 401k's international and bond.
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Re: What accounts should I put my investments in?

Post by backpacker61 »

ralphboy wrote: Sat May 28, 2022 9:32 am My goal is to have all of the money be used as retirement money. Since I can only contribute to my 401k with my income; should I just sell my brokerage account investments and fund my roth with it?
Lots of ways to skin the cat.

The 401(K) contribution limit for 2022 is $20,500 (if under age 50), plus a $6,500 "catch up" contribution if over age 50. If you aren't contributing to the 401(K) at those levels, you could adjust your payroll contribution percentage through your employer to increase your payroll deductions to go into the 401(K), and gradually sell your brokerage account holdings and use the cash from that to fund your lifestyle (to offset the higher payroll deductions). Effectively, that moves the brokerage account funds into your 401(K), although this could take a while, depending on the size of your brokerage account. Be aware not all employer 401(K) plans allow "catch up" contributions.

Or you could fund the Roth IRA (if eligible to contribute to the Roth). The wiki has a detailed discussion of Roth IRA eligibility or the mechanics of the back door Roth IRA if you aren't eligible to contribute to it directly.
ralphboy wrote: Sat May 28, 2022 9:32 am
I would put fixed income investments in the pre-tax 401(K) (some mix of the Stable Value, Baird Bond fund, or you could use one of the State Street balanced funds) to get your fixed income exposure. The State Street funds appear to be the cheapest to own.
My 401k is currently 60% S&P, 20% International, and 20% bond; would it be better if I moved all of those balances to the balanced fund instead? Looks like that would solve my issue of the high expense ratios for my 401k's international and bond.
In the grand scheme of things, your international and bond fund choices aren't really terrible; but the State Street balanced funds are indeed a little cheaper. I would be inclined to make use of those in the 401(K). Your 401(K) plan has some good choices in it.
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Re: What accounts should I put my investments in?

Post by retiredjg »

How much money can you save save each year?

If you cannot save $20,500 in the 401k and $6,000 in the Roth IRA, then yes...selling in taxable to put money into Roth IRA makes sense. You can also sell in taxable to buy gas and groceries and then put more of your salary in the 401k.
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Re: Poor Publix employee seeking 401k investment advice

Post by LadyGeek »

ralphboy - In order to provide appropriate advice, it's best to keep all the information in one spot. I merged your update back into the original thread. If you have any questions, ask them here.

(Thanks to the member who reported the post and provided a link to this thread.)
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Re: Poor Publix employee seeking 401k investment advice

Post by tibbitts »

MattB wrote: Mon May 09, 2022 1:10 pm ...I don't think the difference between your plan (25% Publix stock, 75% S&P within your 401k) and 100% S&P 500 will be that significant.
I think I told a Carnival Cruise Line employee the same thing a few years ago. Hasn't worked out well so far.
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Re: Poor Publix employee seeking 401k investment advice

Post by retiredjg »

Comment for moderators' consideration.

It is helpful to keep information in one place, but at some point it becomes more harmful than helpful. This is one of those situations where consolidation is not helpful.

This original thread started way back on 2020 and this poster is looking for new insight based on his current situation.

It is incredibly confusing when a new thread is attached to old information because people start responding to posts from years past about things that no longer exist. Then people respond that that comment and chaos ensues.

This poster, by his own words, is going around in circles trying to get somewhere. He is looking for and needs new eyes and new ideas.

I am asking that you move this poster's new questions back to an independent thread where it can get the attention he needs now, not intertwined with information from years ago on things that no longer exist.
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Re: What accounts should I put my investments in?

Post by retiredjg »

retiredjg wrote: Sat May 28, 2022 9:17 am
ralphboy wrote: Sat May 28, 2022 8:49 am I have a 401k, brokerage account, and a Roth IRA.

My 401k options are:
Image

I was considering either a two-fund (Fidelity Total Market Index Fund (FSKAX) and Fidelity U. S. Bond Index Fund (FXNAX)), three-fund portfolio (Fidelity Total Market Index Fund (FSKAX), Fidelity Total International Index Fund (FTIHX), and Fidelity U. S. Bond Index Fund (FXNAX)), or a 2055 target date retirement fund (FDEWX).

I looked at the "Tax-efficient fund placement" boglehead wiki and I think I have an idea of what to do; but figured I would get confirmation on here. I would like your advice on where I should place a total market index fund, international index fund, bond index fund, and target date fund. Just to confirm; "taxable account" = brokerage account, "tax-free account" = roth, and "tax-deferred account" = 401k?

I was advised in another thread to move my investments from my brokerage account to my roth. Is there a good reason to do this?
I think you are going about this from the wrong direction.

It appears you have picked funds and are trying to fit them into your accounts. That's backwards. You see what is available in your least flexible account (usually the work account) and build the rest of the portfolio around that.

A portfolio model that works in many situations is...

taxable
total stock
total international

401k
500 index
(international, sometimes)
bonds

Roth IRA
US stock (more 500 index and/or extended market index)

Every situation is different, but this model (or a variation) works for most of them and also accommodates most contributions of new money.

It appears that you are trying for a two fund or three fund total market portfolio. Those are good choices, but it is not important to have exactly those funds. For example, the 500 index alone or the 500 index plus extended market index can be used instead of total stock index.

Also, you should not be using a taxable account for retirement money until you are able to fill both of your tax-advantaged accounts (the 401k and the Roth IRA). And spouse's accounts (if you should have one) should be included too.
When I wrote this earlier, I thought you were filling your 401k and IRA. It appears that is not the case.

I suggest you sell the investments in your taxable account in order to have more money to put in the Roth IRA and the 401k. However, do not sell more in any one year than you can sell tax free. If you keep your taxable income (line 15...this is after deductions) under about $41,675, you will not pay tax on long term capital gains.
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Re: Poor Publix employee seeking 401k investment advice

Post by retiredjg »

Here are two suggestions for a portfolio for you to consider working toward.

Option 1

taxable
empty except for emergency fund and checking/savings that are not part of your asset allocation

401k
500 index
Baird bond fund

Roth IRA
total international
some 500 index and/or extended market index to fill in extra space


Option 2

taxable
empty except for emergency fund and checking/savings that are not part of your asset allocation

401k
Aggressive Allocation fund

Roth IRA
Fidelity Target Index fund at your desired stock to bond ratio


I suggest Option 2 as it is simple and there is less tendency to tinker. However, Option 1 gives you more flexibility in choosing just how much international you want to hold.

Keep in mind that your Publix stock is also part of your stock allocation even though it is not listed here. So you might add just a little to bonds to compensate for that extra stock.

It is important that you stop going in circles and stop changing things around. You need to get to a goal and stay there other than adding more bonds as the years go by. You do not want to arrive at retirement with a high stock allocation.
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Re: Poor Publix employee seeking 401k investment advice

Post by LadyGeek »

retiredjg wrote: Sat May 28, 2022 12:29 pm Comment for moderators' consideration.

It is helpful to keep information in one place, but at some point it becomes more harmful than helpful. This is one of those situations where consolidation is not helpful.

This original thread started way back on 2020 and this poster is looking for new insight based on his current situation.

It is incredibly confusing when a new thread is attached to old information because people start responding to posts from years past about things that no longer exist. Then people respond that that comment and chaos ensues.

This poster, by his own words, is going around in circles trying to get somewhere. He is looking for and needs new eyes and new ideas.

I am asking that you move this poster's new questions back to an independent thread where it can get the attention he needs now, not intertwined with information from years ago on things that no longer exist.
Comment considered. I have split the topic back out. Posts from 2022 and onward are now in this thread.
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Re: What accounts should I put my investments in?

Post by ralphboy »

retiredjg wrote: Sat May 28, 2022 12:34 pm I thought you were filling your 401k and IRA. It appears that is not the case.

I suggest you sell the investments in your taxable account in order to have more money to put in the Roth IRA and the 401k. However, do not sell more in any one year than you can sell tax free. If you keep your taxable income (line 15...this is after deductions) under about $41,675, you will not pay tax on long term capital gains.
I invested $23,000 in a brokerage account in 2014 and quit adding money to it. I currently just invest $100 a week in my 401k. My annual salary is under $35,000. I'm trying to save as much as I can as well as have an extra $100-200 a month to add to savings. I plan on buying a car within the next 5 years [My car is 22 years old]. I have about $34,000 in my bank account.

I have made 2 $6,000 contributions in my roth by selling $6,000 worth of investments in my brokerage account for the past 2 years [I sold 3 of the 5 investments that I had in them since they were near there all time highs. I didn't sell the other two: PNQI and SOCL because there were going down. This was a big mistake because they have really tanked].

My accounts look like this at the moment:

Brokerage account:
PNQI [Invesco Nasdaq Internet ETF] $13,205
SOCL [Global X Social Media ETF] $7,244
FFNOX [Fidelity® Multi-Asset Index Fund] $8,161

Brokerage = $28,617

Roth IRA:
FXAIX 48% [Fidelity® 500 Index Fund] $5,271
FSMAX 12% [Fidelity® Extended Market Index Fund] $1,245
FSPSX 25% [Fidelity® International Index Fund] $2,720
FXNAX 15% [Fidelity® U.S. Bond Index Fund] $1,700.

Roth = $10,938

401k:
State Street S&P 500 Index Fund $13,385.54
RERGX [American EuroPacific Growth R6] $4,265.49
BAGIX [Baird Aggregate Bond Fund] $4,336.80
Cash Component of Publix Stock $75.01

401k = $22,062

My company also gives me stock each year, 8% of my annual salary

Free Publix stock = $27,324

I have purchased additional stock outside of my 401k.

Publix stock that I purchased outside of the 401k = $10,619

Sorry for not posting in my original thread.
It is important that you stop going in circles and stop changing things around. You need to get to a goal and stay there other than adding more bonds as the years go by. You do not want to arrive at retirement with a high stock allocation.
I was thinking about this and that is why I was considering a target date fund; but I was told "ROTH IRAs should only have stocks in them so any target retirement or fund that mixes bonds and stocks is not appropriate. You want as much tax free growth as possible in Roth. No room for bonds." I know the closer it gets to the date, the larger the bond portion is. I like that it becomes safer as I get closer to retirement. I was thinking once I retire and have my 401k and publix stock all inside the roth, I could buy the Vanguard Balanced Index Fund Admiral Shares (VBIAX) for a $75 fidelity fee and keep that until I die. I would love to have one fund when I'm retired and have it on autopilot for monthly/yearly withdraws. I also saw that Fidelity has a 50/50 fund [FASMX], so maybe move the money to that?
Option 1) some 500 index and/or extended market index to fill in extra space
Do you have a recommendation for what to buy? I had someone reach out to me and tell me to put "Small Cap Index, Small Cap Growth Index and maybe Small Cap Value Index (or the equivalent from any low cost no load fund company)" inside a roth.
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Re: What accounts should I put my investments in?

Post by retiredjg »

Ralphboy, thank you for putting all your current information in one post. :happy It makes this so much easier to work with.

ralphboy wrote: I invested $23,000 in a brokerage account in 2014 and quit adding money to it. I currently just invest $100 a week in my 401k.
About $5200 a year into the 401k.

Are you also putting new money into Roth IRA? The profit plan? Or the stock purchase plan?
My annual salary is under $35,000.
This puts you well into the 12% tax bracket. And you are getting the saver's credit, right? You have not mentioned kids so I suspect you are not getting the earned income credit. Is that right?

I have made 2 $6,000 contributions in my roth by selling $6,000 worth of investments in my brokerage account for the past 2 years [I sold 3 of the 5 investments that I had in them since they were near there all time highs. I didn't sell the other two: PNQI and SOCL because there were going down. This was a big mistake because they have really tanked].
You should not be afraid of selling investments you do not want. You can use the loss to reduce the amount of your taxable income. Also, if you sell low (like now) and buy low (like now), you are not really losing anything, just making a sideways move.

Have you contributed to your Roth IRA for 2022? If not, I suggest you sell something and do it.


This is what your portfolio looks like. Notice that I have based all the percentages on the total portfolio of $99,560 instead of by each account.

Brokerage account $28,617 28.7%
13.3% PNQI [Invesco Nasdaq Internet ETF] $13,205
7.3% SOCL [Global X Social Media ETF] $7,244
8.2% FFNOX [Fidelity® Multi-Asset Index Fund] $8,161 (15% of this is bonds)


Roth IRA $10,938 11%
5.3% FXAIX 48% [Fidelity® 500 Index Fund] $5,271
1.3% FSMAX 12% [Fidelity® Extended Market Index Fund] $1,245
2.7% FSPSX 25% [Fidelity® International Index Fund] $2,720
1.7% FXNAX 15% [Fidelity® U.S. Bond Index Fund] $1,700.


401k $22,06 22.2%
13.4% State Street S&P 500 Index Fund $13,385.54
4.3% RERGX [American EuroPacific Growth R6] $4,265.49
4.4% BAGIX [Baird Aggregate Bond Fund] $4,336.80
0.01% Cash Component of Publix Stock $75.01

Free Publix stock = $27,324 27.4%

Publix stock that I purchased outside of the 401k = $10,619 10.7%

Notice that all those little percentages add up to 100% of your portfolio.

Here's the thing. Your portfolio is about 93% stocks, 7% bonds, with 7.5% of the stocks in international. That stock to bond ratio is quite aggressive. But the scary thing is that 38% of your portfolio is invested in the same company that pays your salary. :shock: :shock: :shock:

In spite of the stories you have heard about people who have gotten lucky, this is not a good idea. If your company goes south, and some do, you not only lose your job, your income, and your insurance, you also lose your nest egg. That would be a complete financial catastrophe from which you would never recover.

Obviously, you can't do anything about the stock they give you and that's OK. But you can stop purchasing the stock you are buying both inside and outside of the 401k. If you have not already stopped doing this, please consider it. And any dividends you might get in cash should not be reinvested back into the company stock. Invest those dividends in the 500 index or something like that.


It is important that you stop going in circles and stop changing things around. You need to get to a goal and stay there other than adding more bonds as the years go by. You do not want to arrive at retirement with a high stock allocation.
I was thinking about this and that is why I was considering a target date fund; but I was told "ROTH IRAs should only have stocks in them so any target retirement or fund that mixes bonds and stocks is not appropriate. You want as much tax free growth as possible in Roth. No room for bonds."
That's an opinion, not a rule by any means. And all things being equal, not bad advice to follow in many situations.

But when/if there is a benefit from using a target fund in a Roth IRA, you should consider doing just that. You will make a little less money that is tax free but it will not be a lot. After all, you are only looking at putting a small portion of your Roth IRA into bonds, not the entire thing.

If you like target funds and think it would benefit you to use one, you should.



I know the closer it gets to the date, the larger the bond portion is. I like that it becomes safer as I get closer to retirement. I was thinking once I retire and have my 401k and publix stock all inside the roth, I could buy the Vanguard Balanced Index Fund Admiral Shares (VBIAX) for a $75 fidelity fee and keep that until I die. I would love to have one fund when I'm retired and have it on autopilot for monthly/yearly withdraws. I also saw that Fidelity has a 50/50 fund [FASMX], so maybe move the money to that?
I'm not sure how you are going to get your Publix stock into the Roth IRA. Not sure it works that way.

Yes, a simple 1 fund portfolio in retirement would be nice. Vanguard's Balanced Index might be a nice choice but things may be very different by that time, so picking a fund now is not very helpful.

Option 1) some 500 index and/or extended market index to fill in extra space
Do you have a recommendation for what to buy? I had someone reach out to me and tell me to put "Small Cap Index, Small Cap Growth Index and maybe Small Cap Value Index (or the equivalent from any low cost no load fund company)" inside a roth.
It is going to depend on what you decide to do with the rest of your portfolio. I would avoid SC Growth Index. Either Small cap index or small cap value might be a choice, but all three of those are included in the extended market index so what's the point?


What you need to do now is

1. decide what stock to bond ratio you want for your portfolio.
2. decide about selling something in taxable to give you more money to put into Roth IRA and the 401k.
3. decide if you want a portfolio of individual funds or if you want the simplicity of using the target funds.

When you decide these things, it will be easy to help you get there and you can stop going around in circles.
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Re: What accounts should I put my investments in?

Post by ralphboy »

Are you also putting new money into Roth IRA? No
The profit plan? No, this is the plan where Publix gives me stock each year.
Or the stock purchase plan? I bought some this year (2x my dividend) but I will consider your comment about company stock and stop buying more.

Here are the plans offered by Publix:
Image
My annual salary is under $35,000.
This puts you well into the 12% tax bracket. And you are getting the saver's credit, right? Yes
You have not mentioned kids so I suspect you are not getting the earned income credit. Is that right? Yes, no kids

You should not be afraid of selling investments you do not want. You can use the loss to reduce the amount of your taxable income. Also, if you sell low (like now) and buy low (like now), you are not really losing anything, just making a sideways move.
I thought it would be a big loss because of how much PNQI and SOCL have gone down. That is why I was thinking I should sell FFNOX over the next 2 years to fund my roth. I am making the assumption that PNQI and SOCL will be doing better then.
Image
Have you contributed to your Roth IRA for 2022?
I contributed $6,000 in October 2021 and another $6,000 in January 2022.

Your portfolio is about 93% stocks, 7% bonds, with 7.5% of the stocks in international. That stock to bond ratio is quite aggressive.
Isn't that similar to a target date fund? The one that I was looking at is 90 stocks/ 10 bonds (https://fundresearch.fidelity.com/mutua ... /315793828). I have read a lot of people online are no bonds until 50 or close to retirement.
But the scary thing is that 38% of your portfolio is invested in the same company that pays your salary. :shock: :shock: :shock:

In spite of the stories you have heard about people who have gotten lucky, this is not a good idea. If your company goes south, and some do, you not only lose your job, your income, and your insurance, you also lose your nest egg. That would be a complete financial catastrophe from which you would never recover.
I will stop buying stock even though it is hard not to since I have heard a lot of good stories and I see how busy my store is all of the time. I swear I see some of the customers at least 3x a week and its like they have nothing else to do other than spend money at Publix! However, I am familiar with other grocery stores going out of business and having reduced number of stores in my area such as Albertson's, Kash N Karry, and Winn-Dixie.

Obviously, you can't do anything about the stock they give you and that's OK. But you can stop purchasing the stock you are buying both inside and outside of the 401k. If you have not already stopped doing this, please consider it. And any dividends you might get in cash should not be reinvested back into the company stock. Invest those dividends in the 500 index or something like that.
I am currently doing $25 a week in my 401k for Publix stock but will change this. I think my future contributions will be 100% Aggressive Allocation fund. I agree with you on "Option 2" since I have a tendency to second guess my decisions and tinker. I could use the dividends to fund my roth

It is important that you stop going in circles and stop changing things around. You need to get to a goal and stay there other than adding more bonds as the years go by. You do not want to arrive at retirement with a high stock allocation.
This is why I like the target date fund. It moves to more bonds and I won't have to make that decision on my own. I also like that it rebalances for me.

You will make a little less money that is tax free but it will not be a lot. After all, you are only looking at putting a small portion of your Roth IRA into bonds, not the entire thing.
Won't it become a lot in bonds as I get closer to retirement? At 65, I'll have 43% bonds with the 2055 target date fund.
I'm not sure how you are going to get your Publix stock into the Roth IRA.
I believe once I am 59 1/2 I have the option to sell my Publix stock and move into a traditional IRA and then I could convert that to my Roth?
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Re: What accounts should I put my investments in?

Post by grabiner »

ralphboy wrote: Sun May 29, 2022 7:09 am
You should not be afraid of selling investments you do not want. You can use the loss to reduce the amount of your taxable income. Also, if you sell low (like now) and buy low (like now), you are not really losing anything, just making a sideways move.
I thought it would be a big loss because of how much PNQI and SOCL have gone down. That is why I was thinking I should sell FFNOX over the next 2 years to fund my roth. I am making the assumption that PNQI and SOCL will be doing better then.
I don't know whether these funds will outperform or underperform the market; I expect the market has priced them fairly. But I do know that holding narrowly focused funds increases the risk of your portfolio, which is why you probably want to sell them.

This is the same reason you sold your employer stock. It's probably just as good as any other stock, but you don't want a large part of your portfolio in any one stock that might lose a lot of its value.
You will make a little less money that is tax free but it will not be a lot. After all, you are only looking at putting a small portion of your Roth IRA into bonds, not the entire thing.
Won't it become a lot in bonds as I get closer to retirement? At 65, I'll have 43% bonds with the 2055 target date fund.
If you prefer to hold all your bonds in the 401(k) at this time, you can manage the allocation individually.

But it isn't a serious error to hold bonds in a Roth IRA rather than in a 401(k). In your 12% tax bracket, $10,000 in a 401(k) and $8800 in a Roth IRA will have the same after-tax value if invested the same way; you can invest either one in bonds and the other in stock for no difference. If you hold the same dollar amount in stock in a Roth rather than a 401(k), you do increase your expected returns, but you also increase your risk, as the IRS will share in your stock losses in a 401(k) if the market crashes.

Thus, if you want the simplicity of target-date funds, it makes sense to use them in both your 401(k) and Roth IRA. (In the 401(k), you would switch to a more conservative allocation fund.)
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Re: What accounts should I put my investments in?

Post by retiredjg »

ralphboy wrote: Sun May 29, 2022 7:09 am I thought it would be a big loss because of how much PNQI and SOCL have gone down. That is why I was thinking I should sell FFNOX over the next 2 years to fund my roth. I am making the assumption that PNQI and SOCL will be doing better then.
You - none of us - can make that assumption. They may regain value. They may go down even more. I agree with grabiner that holding these narrowly focused funds increases risk and you already have a great deal of risk in your portfolio.

Maybe you could convince yourself to sell $3k of one of these and $3k of the FFNOX to fund your Roth IRA for 2023. Or sell them this year, take the loss on your taxes and use that money to buy gas and groceries this year while you put another $6k into the 401k.


ralphboy wrote:
retiredjg wrote:Your portfolio is about 93% stocks, 7% bonds, with 7.5% of the stocks in international. That stock to bond ratio is quite aggressive.
Isn't that similar to a target date fund? The one that I was looking at is 90 stocks/ 10 bonds.
You are correct about that but many people (I'm one) think the target date funds may be too aggressive. I suggest 20% bonds even for younger people because it has more return for the risk taken than 90/10. To me, that is a better portfolio and the loss of returns is quite small.

I have read a lot of people online are no bonds until 50 or close to retirement.
That is also true, but you have to consider who is saying that. Many of these people are simply young and don't know any better...yet.

They may be looking only at numbers (more stocks = more return) and don't yet understand the emotional side of investing (or think there is no emotional side). When a big downturn happens, many people are going to realize they are invested beyond their own risk tolerance. You don't want to be one of them.

Some others may think that since 100% stocks is good for them, it should be good for everybody. Some people just don't understand that people really are different and have different goals and different needs.

Moving to 15% or 20% in bonds would still be an aggressive portfolio and quite suitable for your age. We (rather I) don't really know anything about your risk tolerance yet.

I will stop buying stock even though it is hard not to since I have heard a lot of good stories and I see how busy my store is all of the time. I swear I see some of the customers at least 3x a week and its like they have nothing else to do other than spend money at Publix! However, I am familiar with other grocery stores going out of business and having reduced number of stores in my area such as Albertson's, Kash N Karry, and Winn-Dixie.
This is a wise decision. You will always have "a lot" of company stock in your portfolio because of the profit sharing plan. If there is a benefit to be had, you will get some of it too. If the benefit does not pan out...well, it was free stocks and better than nothing. :happy


I am currently doing $25 a week in my 401k for Publix stock but will change this. I think my future contributions will be 100% Aggressive Allocation fund. I agree with you on "Option 2" since I have a tendency to second guess my decisions and tinker. I could use the dividends to fund my roth
This is good.

Won't it become a lot in bonds as I get closer to retirement? At 65, I'll have 43% bonds with the 2055 target date fund.
Yes, that will happen. As the bond percentage gets larger, you might decide to go back to using individual funds instead of the target funds. This will allow you to put more bonds into the 401k and less in bonds in Roth IRA.

The other thing you could do is hold a moderate allocation fund in the 401k (with most of your bonds) and a more aggressive target fund in the Roth IRA.

ralphboy wrote:
retiredjg wrote: I'm not sure how you are going to get your Publix stock into the Roth IRA.
I believe once I am 59 1/2 I have the option to sell my Publix stock and move into a traditional IRA and then I could convert that to my Roth?
That may be possible, I don't know. The chart you posted says it is a "retirement plan" so maybe it can be rolled into IRA/Roth IRA at some later date. I was thinking these stocks were in an ordinary taxable account, not a retirement account.
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Re: Poor Publix employee seeking 401k investment advice - no longer have Publix stock

Post by ruralavalon »

I think those are wise decisions to stop purchases of Publix stock, to use the Aggressive Allocation fund in your 401k, and to use the target date fund in your Roth IRA so you can stop second guessing yourself.
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Re: Poor Publix employee seeking 401k investment advice - no longer have Publix stock

Post by ralphboy »

I did some math with the Moderate balanced fund allocation and the Aggressive balanced fund allocation.
The Moderate balanced fund seeks to offer diversification across asset classes and market capitalization ranges by investing approximately 37% of the Strategy's assets in U.S. bonds,35% in U.S. stocks, 18% in global stocks, and 10% in real assets. The Strategy also employs a disciplined rebalancing policy to ensure it remains aligned with its risk profile.
The Aggressive balanced fund seeks to offer diversification across asset classes and market capitalizationranges by investing approximately 50% of the Strategy's assets in U.S. stocks, 25% in global stocks, 12% in U.S. bonds, and 13% in real assets. The Strategy also employs a disciplined rebalancing policy to ensure it remains aligned with its risk profile.
If I decide to rebalance my 401k and put it all in the moderate balanced fund and to sell the Publix stock that I purchased outside of the 401k plan [$10,619] and use that money to invest 100% in the moderate fund, as well as decide to do 100% FSKAX in my roth and exclude the balance from Publix stock given to me each year, I would have an allocation of:

Domestic 71%
International 8%
Bonds 17%
Real Assets 4%

If I were to do the same but with the aggressive balanced fund, my allocation would be:

Domestic 78%
International 11%
Bonds 5%
Real Assets 5%

I guess then it comes down to me figuring out is this the best asset allocation for me. Which brings up is this too much/not enough bonds and is this too much/ not enough international. I wish I could predict the future to know the answer to those questions.

I ideally would like to set it and forget it and spend my free time not obsessing/stressing over this!
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Re: Poor Publix employee seeking 401k investment advice - no longer have Publix stock

Post by LadyGeek »

One of the rules-of-thumb we use is to only track your asset allocations to the nearest 5%. Going with finer precision, e.g. to the nearest 1% is a lot more work for little added benefit.

What is your desired asset allocation on your portfolio as a whole (domestic / international / bonds / real (fixed income))? Whichever fund is the closest fit is the one to choose.
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Re: Poor Publix employee seeking 401k investment advice - no longer have Publix stock

Post by LadyGeek »

ralphboy wrote: Sun May 29, 2022 11:30 am I guess then it comes down to me figuring out is this the best asset allocation for me. Which brings up is this too much/not enough bonds and is this too much/ not enough international. I wish I could predict the future to know the answer to those questions.
Let the pros figure this out for you. The US stock / international stock / US bond / international bond / cash allocations are built-into the recipes for the target date retirement funds.

See the wiki: Approximating Vanguard target date funds

In summary, pick a target date fund that matches your desired asset allocation (stocks / bonds). Then go to that fund's website and see what's under the hood. Just match their percentages to your portfolio and you are done.
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Re: Poor Publix employee seeking 401k investment advice - no longer have Publix stock

Post by retiredjg »

ralphboy wrote: Sun May 29, 2022 11:30 am If I decide to rebalance my 401k and put it all in the moderate balanced fund and to sell the Publix stock that I purchased outside of the 401k plan [$10,619] and use that money to invest 100% in the moderate fund, as well as decide to do 100% FSKAX in my roth and exclude the balance from Publix stock given to me each year, I would have an allocation of:

Domestic 71%
International 8%
Bonds 17%
Real Assets 4%
Tis would not actually be 17% in bonds (or 8% in international) because you have excluded the Publix stock in the profit sharing plan.

If I were to do the same but with the aggressive balanced fund, my allocation would be:

Domestic 78%
International 11%
Bonds 5%
Real Assets 5%
And this bond allocation would be even less than 5%...this would be a poor choice in my opinion.

I guess then it comes down to me figuring out is this the best asset allocation for me. Which brings up is this too much/not enough bonds and is this too much/ not enough international. I wish I could predict the future to know the answer to those questions.
If you can find someone who knows the future, you could ask. :happy

There is no way to know what percentage of international will turn out to be the "best" one. Suggestions run between 0% and about 50% of your stock in international. When people don't know what they want, I usually suggest something in the 20% to 30% range.

The point is to pick something you think is reasonable and stick with it.

I ideally would like to set it and forget it and spend my free time not obsessing/stressing over this!
Is that really what you want? Or is that simply a statement made out of frustration that you are having trouble making the decision?

If you really want a set and forget portfolio, you will put an asset allocation fund in the 401k and a target fund in the Roth IRA. That way all you have to do is add money and check back in about 5 years to see what/if any adjustments need to be made.
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Re: Poor Publix employee seeking 401k investment advice

Post by Harmanic »

typical.investor wrote: Wed Apr 06, 2022 10:05 pm
ralphboy wrote: Wed Apr 06, 2022 10:00 pm I'm a little bit down in the dumps. I got rid of my Publix stock in my 401k (Transferred it to 60% s&p 500, 20% RERGX (international), and 20% Bagsx (bond) and two evaluations later Publix announced a 5 for 1 stock split.
And again, a stock split really doesn’t mean anything except you have more shares that are worth less. The reason it’s done is to make the shares easier to buy.
Which is an anachronism given that most brokerages allow fractional share purchases. The only reason to split stocks in 2022 is psychological.
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Re: Poor Publix employee seeking 401k investment advice - no longer have Publix stock

Post by ruralavalon »

retiredjg wrote:
ralphboy wrote:I ideally would like to set it and forget it and spend my free time not obsessing/stressing over this!
Is that really what you want? Or is that simply a statement made out of frustration that you are having trouble making the decision?

If you really want a set and forget portfolio, you will put an asset allocation fund in the 401k and a target fund in the Roth IRA. That way all you have to do is add money and check back in about 5 years to see what/if any adjustments need to be made.
I agree with retiredjg, the set-it-and-forget-it portfolio would be the Aggressive Allocation fund in your 401k and the target date fund in your Roth IRA. That would allow you to stop obsessing/stressing over this.
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Re: Poor Publix employee seeking 401k investment advice - no longer have Publix stock

Post by typical.investor »

ruralavalon wrote: Sun May 29, 2022 2:44 pm
retiredjg wrote:
ralphboy wrote:I ideally would like to set it and forget it and spend my free time not obsessing/stressing over this!
Is that really what you want? Or is that simply a statement made out of frustration that you are having trouble making the decision?

If you really want a set and forget portfolio, you will put an asset allocation fund in the 401k and a target fund in the Roth IRA. That way all you have to do is add money and check back in about 5 years to see what/if any adjustments need to be made.
I agree with retiredjg, the set-it-and-forget-it portfolio would be the Aggressive Allocation fund in your 401k and the target date fund in your Roth IRA. That would allow you to stop obsessing/stressing over this.
I agree with ruralavalon, retiredjg and I think grabiner was suggesting the same.

I think you should focus on two things:

1) your upcoming vehicle purchase
2) your career

It's virtually impossible for anybody to do better than a set-it-and-forget-it portfolio over the long term.

You should not stress or feel regretful over any of your decisions. Sure you could have sold PNQI and SOCL to fund your ROTH before they tanked, but you didn't. So what? It's impossible to predict how particular holdings will go. There is no way you could have know what was going to happen. That is the reason many of us prefer broad based index funds. It's an impossible task, a truly impossible task to know when to buy and sell particular holdings. It's not worth the effort to try for most people.
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Re: Poor Publix employee seeking 401k investment advice - no longer have Publix stock

Post by LadyGeek »

On an administrative note, Roth is not an acronyn. It's the name of a US senator. See the wiki: Roth IRA
Named after US Senator William Roth, Roth IRAs were established by the Taxpayer Relief Act of 1997.
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ralphboy
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Re: Poor Publix employee seeking 401k investment advice - no longer have Publix stock

Post by ralphboy »

For asset allocation, I was thinking I should be aggressive now and more conservative as I get older. Maybe 90-80 stocks/ 10-20 bonds. Since my income is low, I was thinking I shouldn't be too conservative in retirement. I was thinking I could be 50/50 from age 65 and onward. I would think a 30/70 allocation wouldn't make my savings grow enough? As far as International, I really don't want to invest in it but for diversification and not knowing what the future will hold; I think 20% is what I would want (begrudgingly). I don't think there is a simple one fund portfolio for my exact specifications. I guess with a three fund portfolio, I'm afraid I'll accidentally do something wrong or I may tinker with it [Like I am doing in my 401k].

I did the math again, I assume when it says, "the fund seeks to offer diversification across asset classes and market capitalization ranges by investing approximately 37% of the Strategy's assets in U.S. bonds,35% in U.S. stocks, 18% in global stocks, and 10% in real assets." That I just need to multiply the amount of money that is in the fund by .37 to get the bonds and .35 to get the US stock allocation, etc.

Here is my allocation assuming I move my brokerage money to my roth and that I sell the $10,000 of Publix stock that I bought and put it in the 401k. I have included the free stock Publix has given me. I know these numbers won't be the actual numbers since the values constantly change and I can't instantaneously move the amounts from one account to another but... here it goes:

Target date 2055 and Moderate Balanced Fund: 33% US, 20% int, 16% bond, 27% publix, 3% real assets

roth 39,555 (21,359 us, 14,239 int, 3,955 bond)
401k 32,681 (11,438 us, 5,882 int, 12,091 bond, 3,268 real assets)
publix 27,324
---------------------------------
Target date 2055 and Aggressive Balanced Fund: 38% US, 23% int, 8% bond, 27% publix, 4% real assets

roth 39,555 (21,359 us, 14,239 int, 3,955 bond)
401k 32,681 (16,340 us, 8,170 int, 3,921 bond, 4,248 real assets)
publix 27,324
-------------------------------
FSKAX and Moderate Balanced Fund: 51% USA, 6% int, 12% bond, 27% publix, 3% real assets

roth 39,555 (39,555 us)
401k 32,681 (11,438 us, 5,882 int, 12,091 bond, 3268 real assets)
publix 27,324
--------------------------------
FSKAX and Aggressive Balanced Fund: 56% USA, 8% int, 4% bond, 27% publix, 4% real assets

roth 39,555 (39,555 us)
401k 32,681 (16,340 us, 8,170 int, 3,921 bond, 4248 real assets)
publix 27,324
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retiredjg
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Re: Poor Publix employee seeking 401k investment advice - no longer have Publix stock

Post by retiredjg »

Do you have a favorite?
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Taylor Larimore
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Re: Poor Publix employee seeking 401k investment advice - no longer have Publix stock

Post by Taylor Larimore »

ralphboy wrote: For asset allocation, I was thinking I should be aggressive now and more conservative as I get older. Maybe 90-80 stocks/ 10-20 bonds.
I am happy to see that you are carefully considering the good advice you are receiving.

Your asset-allocation (which changes with time) may be your most important decision. Use this Vanguard Investor Questionaire to help you make this decision.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "Asset allocation is critically important; but cost is critically important, too -- All other factors pale into insignificance." -- "Choose a balance of stocks and bonds according to your unique circumstances--your investment objective, your time horizon, your level of comfort with risk, and your financial resources."
"Simplicity is the master key to financial success." -- Jack Bogle
John Z
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Re: Poor Publix employee seeking 401k investment advice - no longer have Publix stock

Post by John Z »

Have to say this again: Keep bonds out of Roth. You want Roth to grow tax free with securities with the highest potential return.
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Taylor Larimore
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Re: Poor Publix employee seeking 401k investment advice - no longer have Publix stock

Post by Taylor Larimore »

John Z wrote: Tue May 31, 2022 3:31 pm Have to say this again: Keep bonds out of Roth. You want Roth to grow tax free with securities with the highest potential return.
Bogleheads:

"Keep bonds out of Roth" is controversial and depends on several factors. Bogleheads should read Tax Efficient Fund Placement in our wiki.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: “When comparing returns of mutual funds, insist on getting after-tax returns."
"Simplicity is the master key to financial success." -- Jack Bogle
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ruralavalon
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Re: Poor Publix employee seeking 401k investment advice - no longer have Publix stock

Post by ruralavalon »

John Z wrote: Tue May 31, 2022 3:31 pm Have to say this again: Keep bonds out of Roth. You want Roth to grow tax free with securities with the highest potential return.
But ralphboy wants to have a "set it and forget it [portfolio] and spend my free time not obsessing/stressing over this!" In my opinion that's a sensible objective.

So using allocation funds (balanced funds or target date funds) in all tax-advantaged accounts is a reasonable approach for him.

Anyway using allocation funds seems to insulate the investor against behavioral errors and so produce higher investor returns. Morningstar Mind the Gap 2019.

For what is worth we use Vanguard Balanced Index Fund (VBIAX) in all of our tax-advantaged accounts, both my rollover IRA and our Roth IRAs, in order to have a simple set-it-and-forget-it investing life.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
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retiredjg
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Re: Poor Publix employee seeking 401k investment advice - no longer have Publix stock

Post by retiredjg »

I'm a supporter of using only stocks in Roth IRA...when all other things equal. But they frequently are not equal and there are a number of reasons to put some bonds in Roth IRA.

Ralphboy has mentioned two of them
  • -the desire to have a set and forget portfolio

    -a tendency to tinker
The current suggestion is not a lot of bonds in Roth - only 10%. When the bond allocation in the Roth IRA becomes much larger, the portfolio can be changed if desired. But even this will not be due for many years.

Ralphboy, you need to make a decision on your portfolio and implement it. Nobody here has a perfect portfolio. There is always some give and take, some acceptance of some little thing you don't like very much. This is just investor reality.
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