Ok, I'll bite.....How am I doing too?

[kork13]

arioch, here's a tool I came across this evening. It's extremely detailed/adjustable and seems to give pretty good results. Try it out for yourself. Retirement Planner

[arioch]

Thank you for all 'Kork'..I will look at the tool you provided. And I am interested in exploring bonds.

I have been thinking about this conversation since last night. Perhaps I should have added something else to give a fuller picture to my present situation.

The House: I don't like to add it to the portfolio considerations because it is mine and my family's home....but, in a cold, outside, business perspective, it is an asset.

The house is worth somewhere between $350k-$425K conservatively (I think I could probably get more if I sold it, but...most homeowners usually think their place is worth more than reality).

I have $85k left on the note, let's call it $300k equity....I think that's a fair, conservative guesstimate. Houses in the neighborhood have been rebounding upwards to over $500k in the neighborhood again. My place was estimated at over $500k before the bubble burst (by the way, I NEVER thought it was worth that!...but the market/location drives that)

Anyway....my thought out of all this is I don't think I'm as dire as I probably sounded unintentionally at first...If I came across as such, my apologies. One of the other members got me thinking with a good figure to look at: the 40-50% cash (more like a 90 year old) holdings of my assets.....so, I thought I should toss the house out there for balance.

[arioch]

...I'd recommend a simple S&P 500 index mutual fund and starting there, expanding into a small/mid-cap index fund, mid-term bond index fund, and international stock index fund. Those could easily serve as the core of your portfolio. Index funds are the cheapest and easiest way to go, as long as you are willing to simply add money to it every month and leave it alone.

I am in the Trans-America Index fund (IMLLX)....and have been very pleased with it. It is the cornerstone of what I currently hold...However, it is the individual IRA, it is over $50K, ...I would Love to convert that to a Roth.

I did not know that bonds could be held in a Roth....I thought they were something separate unto themselves...outside of mutual fund holdings.

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I did not know that bonds could be held in a Roth....I thought they were something separate unto themselves...outside of mutual fund holdings.

A Roth is simply a tax-free IRA. You could have a savings account designated as a Roth. Or bonds, or stocks, or a REIT. A Roth IRA doesn't describe where the funds are held, but how the investment is to be used (tax-free retirement).

Places like Vanguard and Fidelity have various bond funds, and you can invest in them for regular investment savings or in an IRA (Roth or traditional).

Out of curiosity, what prompted you to choose IMLLX? Its expense ratio is pretty high, and returns are quite low compared to S&P 500 for the past year. S&P 500 was up about 32% and IMLLX was up just over 6%.

Transamerica Asset Allc Mod Gr C: MUTF:IMLLX quotes & news - Google Finance

[arioch]

it's a left over from my misadventure with the advisor....it does seem to remain relatively steady. It doesn't drop too much, and tends to appreciate at a steady clip....since the others have been rather stagnant, and I'm eventually going to combine them....I've been leaving it alone...

I haven't put a dime into it since 2008

What I noticed in 2008; while everything else was tanking, this one was holding relatively steady, in fact actually started appreciating (because it had a fair amount of oil in it, Exxon I believe)...it saved me...I have a bad tendency to be too loyal....and since it is the largest fund I own...I've been reluctant to mess with it.

[Petunia 100]

That is correct...I am no longer in Contrafund....I have never recovered from that. If I had stayed, the account would have resuscitated....instead she advised me to go into one of the funds she was managing (sold low of course). I was naively looking for someone to advise me on whether I should stay in my investments or not...Irrespective of whether they would have had a commission stake in a potential move or not.

If you are looking for advice as to what to do, please allow me:

1. Stop jumping in and out. That is a losing game.
2. Develop a reasonable asset allocation plan.
3. Choose low-cost quality investments, according to your asset allocation plan.
4. Rebalance periodically.
5. Ignore the noise.

If you want to learn more about investing, Morningstar has a wonderful tool called "investing classroom". It is arranged by topic, has short articles followed by a few multiple choice questions, is highly regarded, and is absolutely free (registration is required).

Investment Education, Investing 101, Investment Basics, Investment Classroom, Learn to Invest | Morningstar

[Petunia 100]

I am in the Trans-America Index fund (IMLLX)....and have been very pleased with it. It is the cornerstone of what I currently hold...However, it is the individual IRA, it is over $50K, ...I would Love to convert that to a Roth.

I did not know that bonds could be held in a Roth....I thought they were something separate unto themselves...outside of mutual fund holdings.

Part of the problem with your returns can be explained right here. According to Morningstar, IMLLX has a 1% load and an annual expense ratio of 2.11%. After paying the $500 entrance fee, you are losing $1,055.00 per year to the expense ratio. IMLLX is an asset allocation fund, holding a diverse mix of stocks and bonds. A similar investment is Vanguard's LifeStrategy Growth Fund VASGX. The holdings are very similar, the strategy is very similar. Yet VASGX has no load and an annual expense ratio of 0.20%. Your 50k in VASGX would mean losing $100 per year to the expense ratio. That's an extra $955 in your pocket IN ONLY ONE YEAR.

Costs matter. Choose quality, low-cost investments whenever possible.

A Roth is merely the package. You can put nearly anything you please inside the package. Mutual funds, ETFs, cash, etc.

[arioch]

the logic is beginning to penetrate the concrete....

Ok, so the next biggest holding I have is the solo 401K.....which is where I want to roll the 401k, and the SEP into.

The solo 401K is a T. Rowe Price retirement fund (2035) TRRJX.

Yield = 1.18%

Load = none

Expenses = 0.77%

Fee Level = Below Average

Turnover = 17.1%

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Remember, the yield changes constantly. Look at the historical yields and balance them against risk and expenses.

You might want to compare that fund to other 2035 retirement funds from different investment firms.

And then do something that almost no one does, at least does in-depth: read the prospectuses. And the supplemental material. Know what companies (and other mutual funds) you're investing in. We cannot read too much.

[Petunia 100]

Are you asking if TRRJX is a good choice? Yes, the T Rowe Price target retirement funds are good funds if you prefer active management. They are diversified and have performed reasonably well. They tend to be on the aggressive side. (By that I mean, tend to hold more stocks than other target date retirement funds aiming at the same year.) Not a problem per se, but you should be aware. The expenses are not rock bottom, but are reasonable. 50k invested in TRRJX will lose $385 the first year to the expense ratio.

T Rowe Price has Morningstar's portfolio tools availabe for free on their site. I suggest you give them a look-see.

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What you really should do is read a primer on investing to gather enough tools to become confident in your decisions.

The Dummies or Idiot's books on beginning investing would probably be a good place to begin. I've read several of their series on various subjects, and they seem to cover the very basics so that you get a decent concept of what your choices are. When you cover that ground, you can then delve further into which investments to consider.

Take your time when choosing your investment and ask your wife to read some books, as well. Then, you can discuss different options that you have. I really think you'll feel better about whatever investment you ultimately decide on, if you have a good foundation of education to base it on.