Background:
I have got 3 more years to go before retiring.
For the last 15 years I've contribute exclusively to low cost 2050 targeted plan (55% domestic, 35% international, 10% cash with a tilt to large caps) and it comprises about 80% of my tax-deferred balance (which is about 1.5M). We were quite limited into what funds we could contribute to.
In the next 3 years I'll put away roughly $200K (I can contribute to both a 403 and 457 plan) and I found out a way to invest in any Vanguard fund.
I won't need any of the tax deferred money (thanks to a nice pension) but will do conversions to a Roth from it.
Plan:
I was thinking of splitting the $200K equally between VSEQX (strategic equity) and VWNFX (Windsor 2 fund). Both are value funds with a high turnover (65+%) with the former leaning towards small/mid caps.
Reasoning:
My reasoning is as follows
a) It helps helps moves my asset allocation away from the current international and large cap tilt
b) Both have stellar records of returning close to 11% for the last 30+ years and due to their high turnover ratio are well suited to a tax deferred account. In fact I couldn't find any other funds (apart from the original Windsor) that were similar.
c) The NAV of these funds are fairly flat as they spin off their yield as a dividend payment once or twice a year. This will greatly help when doing Roth conversions as I could convert the dividend rather than sell equities.
Thoughts?
I have got 3 more years to go before retiring.
For the last 15 years I've contribute exclusively to low cost 2050 targeted plan (55% domestic, 35% international, 10% cash with a tilt to large caps) and it comprises about 80% of my tax-deferred balance (which is about 1.5M). We were quite limited into what funds we could contribute to.
In the next 3 years I'll put away roughly $200K (I can contribute to both a 403 and 457 plan) and I found out a way to invest in any Vanguard fund.
I won't need any of the tax deferred money (thanks to a nice pension) but will do conversions to a Roth from it.
Plan:
I was thinking of splitting the $200K equally between VSEQX (strategic equity) and VWNFX (Windsor 2 fund). Both are value funds with a high turnover (65+%) with the former leaning towards small/mid caps.
Reasoning:
My reasoning is as follows
a) It helps helps moves my asset allocation away from the current international and large cap tilt
b) Both have stellar records of returning close to 11% for the last 30+ years and due to their high turnover ratio are well suited to a tax deferred account. In fact I couldn't find any other funds (apart from the original Windsor) that were similar.
c) The NAV of these funds are fairly flat as they spin off their yield as a dividend payment once or twice a year. This will greatly help when doing Roth conversions as I could convert the dividend rather than sell equities.
Thoughts?
Statistics: Posted by MrCheapo — Thu Aug 22, 2024 8:25 am — Replies 1 — Views 159