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I have recently discovered that my employer does not offer a 401k. Lucky me. Well I need to set up an IRA. I currently have an account with Vanguard and I am thinking of rolling over the little money I have in their Vanguard Target 2040 fund. I also have an account with Mass Mutual. It is a small amount. I went on their website and I could not find what products they offer for individual retirement accounts. I plan to consolidate all of the little accounts in to one. Any suggestions? Thanks.
vanguard offers almost all the funds for an ira except the annuity related ones an ira is only an account status that can be assigned to most anything they offer
My first suggestion is to call & talk to a Vanguard rep, my opinion is they are the best in the biz for the individual investor. Any investment can be characterized as an IRA, it just needs the account to be set up that way first, you can have IRA & a non IRA investments in your account.
Coming from the perspective as one drawing from accounts now, I would suggest setting up a Roth IRA & contributing to that as a first choice & then fund a regular IRA after that if possible. It would be nice to have entirely tax free income when older plus I suspect that the knuckleheads in DC will eliminate that in the future if possible, considering the way they are circling around ACA, SS & Medicare already... it would be good to get grandfathered in if it is eliminated.
Vanguard is one of the best places for IRA's because their expense ratios are low. I agree that you need to call Vanguard and get someone there to help you. They should be able to provide you with the proper transfer paperwork that you complete and return to Vanguard. They will send these documents to both administrators of your current 401Ks and the money will be transferred.
Stay with Vanguard. Their above average reputation among small investors has been earned. Agree with Hefe, call a Vanguard rep and go over your situation.
There is another strategy called buckets of money or something like that. The strategy is basically keeping your money in more than one account. And the account type is based on when you might need the money.
First check out the fees and expenses of the Mass Mutual account. If they compare with Vanguard and seem reasonable, keep the account. If the fees are high. move the money to another company with lower fees and expenses.
The fees and expenses are where they get you. And make sure you are not paying a commission on your deposits. I have seen companies that charge 8.5% comission on each deposit and then charge 3% fees and expenses on the balance of your account. It should be illegal but Wallstreet owns our politicians.
my two cents here for what it is worth. Don't roll out of your Vanguard 2040. Roll into it. Keep the target fund. Unless that fund has been doing badly don't change horses. Or the other issue is if that is where a 401k fund is. Then roll it out and into another Vanguard fund. Wellesley or Wellington funds come to mind.
Vanguard sounds like a winner. I will call both Vanguard and Mass Mutual to compare fees. I can only afford to contribute to one retirement fund. I am not much of an investor. I just want to contribute and not worry about moving money to multiple accounts. The all in one fund 2040 sounds like a viable option.
I will ask about the Roth. It would be nice to have one form of income that cannot be taxed. I do not think I will fall in the low income tax bracket when I reach retirement age. I have no desire to retire. I will probably do customer service or work at the library.
I hope to get this started by February. Any additional comments on Roth and traditional IRAs would be greatly appreciated. Thanks.
Go with Vanguard.
ROTH is a good option
When you mention the work insurance and retirement accounts I think that the costs are probably too high. Just my feeling.
Remember you set up the IRA and then buy what ever investments you want from within the IRA.
Vanguard sounds like a winner. I will call both Vanguard and Mass Mutual to compare fees. I can only afford to contribute to one retirement fund. I am not much of an investor. I just want to contribute and not worry about moving money to multiple accounts. The all in one fund 2040 sounds like a viable option.
I will ask about the Roth. It would be nice to have one form of income that cannot be taxed. I do not think I will fall in the low income tax bracket when I reach retirement age. I have no desire to retire. I will probably do customer service or work at the library.
I hope to get this started by February. Any additional comments on Roth and traditional IRAs would be greatly appreciated. Thanks.
Again my two cents. The Roth option is your best bet. Especially since you are putting in out of your after tax income already. Taking the deduction from your taxes the following year is okay but since the income from the Roth in the future is never taxed then you are stepping ahead. Reminder. that Roth can only get a maximum of $5500 a year. If you have more than that and you want to save it do the same just do not put it in the Roth.
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