Roth funds for 59 yr old (annuity, IRA, margin, fees)
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I've read all the great recommended books suggested and more, but I'm still confused. I'm well diversified in present 401k and IRA. I reached my 8 mo emergency fund and now would like to open a Roth IRA. I'm 59 yrs young so I only have about 8-9 yrs before retirement. I'm seriously behind in my present retirement accounts due to a divorce and job loss during the last 10 yrs so I really don't want to invest in any high-risk funds in the Roth. I have a Fidelity acccount for the IRA so I will be using them for the Roth. Problem is, after all the reading and even talking to a Fidelity Rep who bascially said said he couldn't "recommend any funds" I still don't know which funds to choose for the Roth.
Anybody in my age group that an relate and recommend? Then again, am I wrong in my way of thinking and I should be thinking higher risk due to much needed make-up?
Put it in an index fund like VOO... it may be a little more risky but 8-9 years it should be fine... hopefully... of course if you want safe and secure, you could just leave it in the bank but since you are putting it in the financial markets, a little risk is something you are already okay with...
Is the Vanguard S & P (VOO) differnt from the Fiideltiy S & P?
They are not that different, they both follow the same index. The fees are a little different but either would be fine, it won't make too much of a difference...
We have plenty of money in our IRA's and all that money coming out goes at the marginal tax rate. If I had to do it again, I would split my investments between traditional IRA's and Roth's.
Having both will give you much more flexibility in retirement.
I've read all the great recommended books suggested and more, but I'm still confused. I'm well diversified in present 401k and IRA. I reached my 8 mo emergency fund and now would like to open a Roth IRA. I'm 59 yrs young so I only have about 8-9 yrs before retirement. I'm seriously behind in my present retirement accounts due to a divorce and job loss during the last 10 yrs so I really don't want to invest in any high-risk funds in the Roth. I have a Fidelity acccount for the IRA so I will be using them for the Roth. Problem is, after all the reading and even talking to a Fidelity Rep who bascially said said he couldn't "recommend any funds" I still don't know which funds to choose for the Roth.
Anybody in my age group that an relate and recommend? Then again, am I wrong in my way of thinking and I should be thinking higher risk due to much needed make-up?
Just my opinion, but I think an S&P 500 Index fund is too risky for a 59 year old. Consider Fidelity Freedom 2025 if you want to stay with Fidelity. Ideally, I'd say go with Vanguard Wellesley Income.
Thanks, I was thinking the same; hence my confusion and request for your input. I'm 59 and only have 9 yrs until retirement, so I really don't "think" I should consider any high-risk funds; albeit I'm seriously behind in retirement funds due to divorce and job loss yrs ago and need to make up for lost time, but at the same time can't take a risk. I'm already invested in a target fund w/Fidelity (401k rolled into IRA) I'm opening up he Roth w/Fidelity this week and will work very hard in making contributions, but need to make the right choice, and there are so many! Below is a list of funds I am presently invested in at my 401k at work and other choices within the plan. As far as other retirement funds, my only other investments is a small flexible fix annuity at 3%. Appreciate your input.
Present 401k
PIMPCO Total Return - exp ratio 0.71%
Fideltiy Spartan 500 Index - exp ratio 0.10%
Mainstay Large Cap Growth - exp ratio 0.89%
JP Morgan Mid Cap Value - ex ratio 1.14% - net exp ratio 1.00%
MSIF Mid Cap Growth - exp ratio 0.71%
Prudential Jenn Small Co - exp ratio 1.15%
Target Small Cap Value - exp ratio 0.68%
Other available funds within 401k
BMO Stable Principal - exp ratio 0.59% - net 0.57%
MFS Value - exp ratio 0.96%
American Fundamental Inv - exp ratio 0.36%
American Euro Pacific -exp ratio 0.55%
Thornburg Internl Value - exp ratio 1.06% next 0.99%
Prudential Jenn Health Sciences exp ratio 1.23%
Fidelity Freedom Income - exp ratio 0.51%
Fideltiy 2000, 2005, 2010,2015, 2020, 2025, etc. 0.51%
It would be difficult for anyone to offer much help here without knowing what percentage of your 401k is allocated to each fund. If, for example, you had 60% invested in the PIMCO Total Return fund, you might want to take on more risk. If it's only 5%, you should probably go more conservative. Two of your funds are large caps, and besides the fact that you probably have duplication there, you might have too much in large caps in general--or maybe you don't. We couldn't say without knowing how much of your 401k is allocated to each. See?
Present 401k 24.31% - PIMPCO Total Return - exp ratio 0.71%
25.01% - Fideltiy Spartan 500 Index - exp ratio 0.10%
16.44% - Mainstay Large Cap Growth - exp ratio 0.89%
7.97% - JP Morgan Mid Cap Value - ex ratio 1.14% - net exp ratio 1.00%
8.30% - MSIF Mid Cap Growth - exp ratio 0.71%
10.02% - Prudential Jenn Small Co - exp ratio 1.15%
7.95% - Target Small Cap Value - exp ratio 0.68%
Other available funds within 401k
BMO Stable Principal - exp ratio 0.59% - net 0.57%
MFS Value - exp ratio 0.96%
American Fundamental Inv - exp ratio 0.36%
American Euro Pacific -exp ratio 0.55%
Thornburg Internl Value - exp ratio 1.06% next 0.99%
Prudential Jenn Health Sciences exp ratio 1.23%
Fidelity Freedom Income - exp ratio 0.51%
Fideltiy 2000, 2005, 2010,2015, 2020, 2025, etc. 0.51%
Just my opinion, but I think an S&P 500 Index fund is too risky for a 59 year old. Consider Fidelity Freedom 2025 if you want to stay with Fidelity. Ideally, I'd say go with Vanguard Wellesley Income.
wellesley income gets my vote too
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To: Evil Newbie
