I understand that I shouldn’t be timing the market, but with the market being at all time high and election right around the corner, I am wondering if I should DCA into the new rolled over IRA account. Here is the background
Recently I moved from company A to company B, where I have already maxed out my 401K for 2024 with Company A.
This is my first time moving a job and I have never rolled over a 401K. I did make a call to Fidelity and opened a Rollover 401K and I was told that they had to liquidate all my holdings in 401K before rolling over. I was shocked because it was a Fidelity to Fidelity move. They said its the policy of Company A and I can move positions in kind.
The portfolio net is in mid-6 figures with the following breakout
FJTKX Fidelity Freedom 2045. 27%
Fid Govt Inst CASH MM 9%
Fid 500 index FXAIX. 38%
Vanguard Valu invest VVIX. 10%.
SPL Mid Cap index. 16%
The liquidation has happened and the $ is in the new Rolllover Acct.
I have some questions and am at cross roads as to what is the best approach to move forward:
1. Is this normal that rollover is always after liquidation from a 401K?. Not that it matters to me anymore, but curious if everyone goes through the same?
2. I understand that I have more choices now, but I am a little vary of choosing the equivalent funds and buy in all now. As you can see I was holding 9% cash even with company A's 401K and I was investing it piecemeal. So, now that the market is at all time high, so, I'd like to invest by DCA. Is this a wrong train of thought? I understand by holding cash I would be missing some returns
3. I would also like to buy Index ETFs like VTI , VOO or VV instead of the equivalent mutual funds because i never had the opportunity to buy them within my 401K acct. I understand that there is no tax benefit by switching to ETFs from Mutual funds in tax advantaged accounts. Is my understanding correct?
4. Is there a way to buy ETF’s automatically within the IRA accounts with a set limit price in Fidelity - auto investing? Or is this an advantage of Mutual funds alone?
5. I have a Fidelity Advisor call scheduled later this week to discuss about the opportunities, but I would rather take the advise from bogleheads than
that of broker-advisors. Does anyone have any pointers on how I can handle the sales pitch if there will be any?
6. I am not very keen on Intl exposure or Bonds in my portfolio because I do have intl exposure separately and have bonds in my retirement country. I tried the Fidelity ETF screener and couldn’t figure out how to get the Index ETFs from vanguard / Fidelity etc. Based on what I have looked up so far, am of the following splits, either vanguard or fidelity. Is this a good mix?
VTI. Vanguard Total Stock Market ETF
VOO . Vanguard S&P 500 ETF
VTV. Vanguard Value ETF
VGT Vanguard Information Technology ETF
7. IF I decide to go with DCA, should I construct a treasury ladder so that only the necessary $ for each month matures while the rest is earning at least earning something? then i i will either autoinvest the monthly amount into the above ETF's or MFs?
Just trying to understand this better so i get a good perspective of how this works, and can make an informed decision.
Thanks in advance for reading through the post and for your help.
Recently I moved from company A to company B, where I have already maxed out my 401K for 2024 with Company A.
This is my first time moving a job and I have never rolled over a 401K. I did make a call to Fidelity and opened a Rollover 401K and I was told that they had to liquidate all my holdings in 401K before rolling over. I was shocked because it was a Fidelity to Fidelity move. They said its the policy of Company A and I can move positions in kind.
The portfolio net is in mid-6 figures with the following breakout
FJTKX Fidelity Freedom 2045. 27%
Fid Govt Inst CASH MM 9%
Fid 500 index FXAIX. 38%
Vanguard Valu invest VVIX. 10%.
SPL Mid Cap index. 16%
The liquidation has happened and the $ is in the new Rolllover Acct.
I have some questions and am at cross roads as to what is the best approach to move forward:
1. Is this normal that rollover is always after liquidation from a 401K?. Not that it matters to me anymore, but curious if everyone goes through the same?
2. I understand that I have more choices now, but I am a little vary of choosing the equivalent funds and buy in all now. As you can see I was holding 9% cash even with company A's 401K and I was investing it piecemeal. So, now that the market is at all time high, so, I'd like to invest by DCA. Is this a wrong train of thought? I understand by holding cash I would be missing some returns
3. I would also like to buy Index ETFs like VTI , VOO or VV instead of the equivalent mutual funds because i never had the opportunity to buy them within my 401K acct. I understand that there is no tax benefit by switching to ETFs from Mutual funds in tax advantaged accounts. Is my understanding correct?
4. Is there a way to buy ETF’s automatically within the IRA accounts with a set limit price in Fidelity - auto investing? Or is this an advantage of Mutual funds alone?
5. I have a Fidelity Advisor call scheduled later this week to discuss about the opportunities, but I would rather take the advise from bogleheads than
that of broker-advisors. Does anyone have any pointers on how I can handle the sales pitch if there will be any?
6. I am not very keen on Intl exposure or Bonds in my portfolio because I do have intl exposure separately and have bonds in my retirement country. I tried the Fidelity ETF screener and couldn’t figure out how to get the Index ETFs from vanguard / Fidelity etc. Based on what I have looked up so far, am of the following splits, either vanguard or fidelity. Is this a good mix?
VTI. Vanguard Total Stock Market ETF
VOO . Vanguard S&P 500 ETF
VTV. Vanguard Value ETF
VGT Vanguard Information Technology ETF
7. IF I decide to go with DCA, should I construct a treasury ladder so that only the necessary $ for each month matures while the rest is earning at least earning something? then i i will either autoinvest the monthly amount into the above ETF's or MFs?
Just trying to understand this better so i get a good perspective of how this works, and can make an informed decision.
Thanks in advance for reading through the post and for your help.
Statistics: Posted by blogpie — Wed Oct 23, 2024 6:37 pm — Replies 3 — Views 212