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Started By
Message
TDA moving to Schwab need advice
Posted on 7/2/23 at 3:01 pm
Posted on 7/2/23 at 3:01 pm
Wanted to get some suggestions from the MT board. I'm having to move in Sept and it's a good thing as I've been lazy about my solo 401k. It's in a T. Rowe 2045 fund and I don't necessarily like it. Full disclosure, my actual retirement age is 2035, but I wanted to be more aggressive.
Anyway, I have about $325k sitting in there now and wondering what fund to throw it into with my monthly auto-invest? Figuring a Schwab fund is best to avoid fees and such but I don't know much about Schwab yet. I looked at at couple funds quickly: SWYHX 2045 index fund and SWPPX S&P 500 index fund so far. Thoughts on those or any other recommendations would be appreciated
Anyway, I have about $325k sitting in there now and wondering what fund to throw it into with my monthly auto-invest? Figuring a Schwab fund is best to avoid fees and such but I don't know much about Schwab yet. I looked at at couple funds quickly: SWYHX 2045 index fund and SWPPX S&P 500 index fund so far. Thoughts on those or any other recommendations would be appreciated
6
Posted on 7/2/23 at 3:48 pm to Joe D Grinder
I would stop buying target date funds immediately.
Posted on 7/2/23 at 4:10 pm to beaverfever
Yeah, that's where my head is at. Like I said, I took a lazy approach. Any recs?
Posted on 7/2/23 at 4:48 pm to Joe D Grinder
I’d do something like this based off what you’ve shared.
ITOT-25%
VUG-10%
VTV-20%
RSP-5%
VO-10%
VB-5%
CDs or bonds-25%
ITOT-25%
VUG-10%
VTV-20%
RSP-5%
VO-10%
VB-5%
CDs or bonds-25%
Posted on 7/2/23 at 5:19 pm to beaverfever
quote:
I would stop buying target date funds immediately.
^^^^^^^^^^^^^^^^^^^^^^THIS^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Posted on 7/2/23 at 6:25 pm to Joe D Grinder
quote:
TDA moving to Schwab need advice
That's exactly what the baseball stadium in Omaha did.
Posted on 7/2/23 at 7:10 pm to beaverfever
Except he should build it using Schwab Select funds so that he doesn’t pay trading fees.
Posted on 7/2/23 at 7:14 pm to Joe D Grinder
Schwab has that intelligent portfolio that auto invest
Posted on 7/2/23 at 7:15 pm to thelawnwranglers
quote:
Schwab has that intelligent portfolio that auto invest
Would be great if it didn’t have so much cash drag.
Posted on 7/2/23 at 7:17 pm to lynxcat
quote:
Would be great if it didn’t have so much cash drag.
What do you mean by that?
I copied it's investment but don't want it handling my fixed income
I don't know if I am doing good or not to be honest
Posted on 7/2/23 at 7:20 pm to Joe D Grinder
SCHB - total stock market
SCHF - International stock
SCHE - Emerging market stock
SCHZ - Total Bond fund
Those give you what you need through Schwab ETFs.
SWTSX is total market stock mutual fund.
SWISX is international fund.
Schwab doesn’t have a good emerging markets low cost mutual fund.
SCHF - International stock
SCHE - Emerging market stock
SCHZ - Total Bond fund
Those give you what you need through Schwab ETFs.
SWTSX is total market stock mutual fund.
SWISX is international fund.
Schwab doesn’t have a good emerging markets low cost mutual fund.
Posted on 7/2/23 at 7:24 pm to thelawnwranglers
quote:
What do you mean by that?
Schwab actually got sued for deceptive practices on their intelligent portfolios. In a nut shell, they advise a certain fee (think it’s around 0.25%) but they also use the cash that isn’t invested as float that they can do with as they please. Even on the most aggressive portfolio, 7% of The portfolio is in cash and doesn’t get invested. Over time, this is referred to as “cash drag” because it creates a deviation versus being fully invested in the market. In short, their intelligent portfolios underestimate the cost they charge to clients.
Posted on 7/2/23 at 7:29 pm to lynxcat
I absolutely think the future is AI / intelligent portfolios with built in tax strategy. But, the fees need to get compressed for me to play ball.
Posted on 7/2/23 at 7:36 pm to lynxcat
SCHH is an excellent REIT.
Are you familiar with this one?
Are you familiar with this one?
Posted on 7/2/23 at 7:52 pm to lynxcat
quote:
7% of The portfolio is in cash and doesn’t get invested. Over time, this is referred to as “cash drag”
Oh
Makes sense yeah that is too much
quote:
In short, their intelligent portfolios underestimate the cost they charge to clients.
Only compounded more with interest rates
This post was edited on 7/2/23 at 7:54 pm
Posted on 7/2/23 at 9:07 pm to Paul Allen
Familiar with it but haven’t used it to-date.
Posted on 7/4/23 at 9:13 am to beaverfever
quote:
I would stop buying target date funds immediately.
Why is that? Fees? Or Expense ratio?
This post was edited on 7/4/23 at 2:11 pm
Posted on 7/4/23 at 11:13 am to danilo
quote:
Why is that? Fees?
Fees are higher on target date funds but they are still relatively low through Vanguard, Schwab, and Fidelity. You are probably talking about .12% fees instead of building your own portfolio and blending to around .06%.
Posted on 7/4/23 at 4:04 pm to Joe D Grinder
With $325k, a dozen or more years left to retirement and your hands-off approach, you could split it between the total market and s&p500 options that Schwab has. Most will advise some international exposure, but that gets complicated if doing it on your own. Revisit it in a few years to change your mix to include some money into bonds as you get closer to retirement. Or you could pay for financial advice.
Either of these routes are better than a target dated fund.
Either of these routes are better than a target dated fund.
Posted on 7/4/23 at 8:23 pm to Joe D Grinder
Mines being moved also but it's self directed. It's just going to have the same stocks. Are you being forced to buy different funds also?
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