- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Schwab Traditional IRA Advice
Posted on 2/1/24 at 8:51 am
Posted on 2/1/24 at 8:51 am
I'm completely new to the investing game, but I'm in my 40s. I have a retirement pension already (that I'm collecting), and I'm working on my 2nd pension currently. Both pensions have a survivor benefit option so my wife will be taken care of in the event I'm no longer around (in addition to life insurance).
So here's my question regarding a traditional IRA I just opened up (rolled over my TSP funds). My goal for this would be to leave this to my children since my wife and I won't need it. With that being the case, what advice would you have for me in regard to allocation of the funds? I'm not looking for risky plays.
I'll call Schwab later and speak with them, but figured I'd ask here also. Thanks!
ETA: Is there something wrong with my post or do I just have a serial downvoter? I thought I was asking a legitimate question.
So here's my question regarding a traditional IRA I just opened up (rolled over my TSP funds). My goal for this would be to leave this to my children since my wife and I won't need it. With that being the case, what advice would you have for me in regard to allocation of the funds? I'm not looking for risky plays.
I'll call Schwab later and speak with them, but figured I'd ask here also. Thanks!
ETA: Is there something wrong with my post or do I just have a serial downvoter? I thought I was asking a legitimate question.
This post was edited on 2/1/24 at 10:29 am
7
Posted on 2/1/24 at 9:17 am to AFtigerFan
How old are your kids? How do you know you won’t need it? I would detail what this money is for and make sure you know what it’s for. That is the key for your investment allocations.
Posted on 2/1/24 at 10:08 am to TJack
quote:
How old are your kids?
10-12
quote:
How do you know you won’t need it?
I could live off my current pension if I wanted to, but I decided to take another full-time job since I love the work. I'm working on my 2nd pension with this job. My children's college expenses are already covered so I don't have to worry about that part.
quote:I'd like a pretty safe growth plan with the intention of this being an inheritance for my children.
I would detail what this money is for and make sure you know what it’s for. That is the key for your investment allocations.
Posted on 2/1/24 at 10:38 am to AFtigerFan
IRA Trust
Low cost index funds
Low cost index funds
This post was edited on 2/1/24 at 10:43 am
Posted on 2/1/24 at 10:45 am to AFtigerFan
With the distinct possibility that we might find ourself in a shooting war I would park the funds in a CD, for now. You can get 5% interest on a 12-month CD, with FDIC protection.
Posted on 2/1/24 at 10:55 am to AFtigerFan
quote:
With that being the case, what advice would you have for me in regard to allocation of the funds? I'm not looking for risky plays.
Just use Schwab's free intelligent portfolios. It will setup and manage everything for you for free.
Posted on 2/1/24 at 11:48 am to AFtigerFan
With a long time horizon I'd just got 100% low expense ratio index funds something like a total market or S&P500.
Is your SBP pension benefit (55% max) actually sufficient to support spouse? If you're depending on life insurance, is the term sufficient? You can't bank on the second pension being available to spouse in event you pass before eligibility or have to/choose to leave job.
I'm in similar situation (without seeking second pension) but planning for TSP, Roth IRAs, taxable investments plus life insurance to support spouse if I pass (declined SBP.) Term policy only runs until kids are grown so after that she'll be reliant on nest egg if I die. I am invested 100% equities nearly all in index funds. I figure I can accept that risk for now because of stable pension in lieu of bonds. If I pass spouse should shift to more conservative asset allocation.
Is your SBP pension benefit (55% max) actually sufficient to support spouse? If you're depending on life insurance, is the term sufficient? You can't bank on the second pension being available to spouse in event you pass before eligibility or have to/choose to leave job.
I'm in similar situation (without seeking second pension) but planning for TSP, Roth IRAs, taxable investments plus life insurance to support spouse if I pass (declined SBP.) Term policy only runs until kids are grown so after that she'll be reliant on nest egg if I die. I am invested 100% equities nearly all in index funds. I figure I can accept that risk for now because of stable pension in lieu of bonds. If I pass spouse should shift to more conservative asset allocation.
Posted on 2/1/24 at 11:51 am to AFtigerFan
Side note: Did you have any tax exempt balance from combat zone contributions in your traditional TSP rollover? Just curious as I've been meaning to rollover mine but that complexity has me stalling. I want to make sure it rolls from traditional TSP to Roth IRA so the growth can start accumulating tax free (contributions were made pre Roth TSP availability.). I've read online it was possible in past but with the new TSP servicer I dont trust they wont dick it up royally.
Posted on 2/1/24 at 6:28 pm to TorchtheFlyingTiger
quote:No, but my second pension’s SBP % is MUCH better so when I retire again, she’ll have no problems. I know I need to make it there first, but my life insurance is a safety net in case that doesn’t happen. I honestly have no concerns financially about her with my current setup. And if I do 15 years at the new job, then it’s gravy.
Is your SBP pension benefit (55% max) actually sufficient to support spouse?
Posted on 2/1/24 at 7:00 pm to AFtigerFan
Just put it all in SCHB (Schwab lowest cost total market ETF) and be done with it.
Posted on 2/1/24 at 7:03 pm to AFtigerFan
We live once. Go do something with it that will be memorable in this situation.
I've see so many kids squander $ handed to them.
I've see so many kids squander $ handed to them.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News