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Talking stocks, trading, and investing in general - Page 406

post #6076 of 6082
My 401(k)




and my Merrill Lynch




and my Betterment



and my Wise Banyan

post #6077 of 6082
@ amerikajinda can you explain to me your rationale behind having 25 funds spread out among 4 different accounts? Most just curious, I would imagine it would be hard to get an apple-to-apple performance comparison having to log into so many accounts.
post #6078 of 6082
Quote:
Originally Posted by stimulacra View Post

@ amerikajinda can you explain to me your rationale behind having 25 funds spread out among 4 different accounts? Most just curious, I would imagine it would be hard to get an apple-to-apple performance comparison having to log into so many accounts.

I was going to ask a similar question yesterday about how to manage multiple accounts...but realized I already mostly knew the answer for how I wanted to do it.

The issue comes down to different account classes. Not hard to imagine a world in which someone has:
- 401k
- Roth IRA (that they can no longer contribute to)
- Trad IRA (that had an old 401k rolled into it, so it can't easily be rolled into a backdoor Roth)
- Taxable account

You could easily have more if you have other sorts of retirement accounts. Or if you have multiple 401ks sitting around from previous employers that you didn't roll over.

How do you manage those? Sure, you could start out with all of your S&P500 in one, all of your international in another, some bonds in a third, etc. But what do you do when you have to re-balance? You can't just move money from your 401k to your Roth IRA to balance from over-performing assets to underperforming...and you can't add new money beyond legal annual contributions.

So instead, you are going to have to double up on asset classes. And one 401k provider might offer a vanguard S&P500 index with low fees...while your Traditional IRA instead gives you free trades in a S&P500 ETF. You end up holding slightly different variations on the same thing. You don't have to hold every asset class in every account, but you need some duplicates in order to re-balance easily.
post #6079 of 6082

To limit the number of accounts I deal with, we transitioned all of our assets to Vanguard other than 401(k)s because it was easiest.  Since Vanguard funds are usually the cheapest, I try to find the cheapest asset classes that cover what I need in the 401(k) then allocate the rest in our Vanguard accounts.  The issue is going to be that 401(k)s generally have a very cheap S&P 500 fund then the rest are more expensive.  At some point our asset classes will be out of whack but I think it will be easy enough with my wifes account.  

post #6080 of 6082
post #6081 of 6082
Quote:
Originally Posted by otc View Post

I was going to ask a similar question yesterday about how to manage multiple accounts...but realized I already mostly knew the answer for how I wanted to do it.

The issue comes down to different account classes. Not hard to imagine a world in which someone has:
- 401k
- Roth IRA (that they can no longer contribute to)
- Trad IRA (that had an old 401k rolled into it, so it can't easily be rolled into a backdoor Roth)
- Taxable account

You could easily have more if you have other sorts of retirement accounts. Or if you have multiple 401ks sitting around from previous employers that you didn't roll over.

How do you manage those? Sure, you could start out with all of your S&P500 in one, all of your international in another, some bonds in a third, etc. But what do you do when you have to re-balance? You can't just move money from your 401k to your Roth IRA to balance from over-performing assets to underperforming...and you can't add new money beyond legal annual contributions.

So instead, you are going to have to double up on asset classes. And one 401k provider might offer a vanguard S&P500 index with low fees...while your Traditional IRA instead gives you free trades in a S&P500 ETF. You end up holding slightly different variations on the same thing. You don't have to hold every asset class in every account, but you need some duplicates in order to re-balance easily.

This makes a lot of sense. Thanks for walking me through the thinking.
post #6082 of 6082
Quote:
Originally Posted by stimulacra View Post

@ amerikajinda can you explain to me your rationale behind having 25 funds spread out among 4 different accounts? Most just curious, I would imagine it would be hard to get an apple-to-apple performance comparison having to log into so many accounts.

OTC hit it on the head... nice explanation, OTC!
Well for me personally, my company limits my 401(k) choices exclusively to American Funds, so I have those... then I keep all my fun money at Merrill Lynch (where I have all my individual stocks as well as my mutual funds that mimic hedge funds like IVAEX, SGIIX, etc., my speculative plays, etc. etc.) but then I have the bulk of my monies in the (relative) safety of the traditional asset allocation of Betterment and WiseBanyan at risk level 10 (the highest).
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