How should I re-align my three investment accounts?

Investing
#1

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I have overlap in my investment accounts and I’d like some advice on how to fix them. I have the following index funds and one ETF in three different investment accounts. I had a target date fund RFGTX with an expense of 0.38 in my 401k, but I moved the funds into VFIAX before I took the PFC course and I decided to instead choose Vanguards Target date fund since it was Vanguard and the expense ratio was smaller.

I have about $300k in my 401k and I’m in my 3rd year of investing in a Roth IRA at $20k. As for the Roth IRA I’m almost at the point maybe 2022 or 2023 where I will no longer be eligible to contribute to a Roth IRA and will have to roll it.

Could you help me re-align these accounts to make more sense. Thanks!

#2

@Jeremy could you answer this for me please. I’m thinking I could move the VSMAX into the VFIAX for my 401k and that gives me the 3-fund account (US, Int & Bond). In the Roth IRA since I already have VFIAX in my 401k I should move that into VFORX…not even sure I’m on track with this either. Please help :slightly_smiling_face:

#3

Jeremy will likely say skip the confusion and go 100% into a TDIF :). That’s assuming there aren’t any major tax implications

Hopefully these also help

1 Like
#4

Thanks @thberry10! I know @Jeremy is big on TDIF and the three fund portfolio. I just needed some kind of reassurance on what and where to align. Thinking about moving things around gives me anxiety like I’m not doing it right or could do it better :woman_shrugging:

Thanks again,
Sonia