David, I love that you are using Vanguard. Just be sure you aren't too concentrated in one sector with the stocks. You can analyze your portfolio composition at morningstar.com. I don't think it is a premium service but I am not sure. In the meantime, remember that buying "ugly" (vs. buying the hot stock everyone is talking about) can be a good idea over time. Buying low (which means increasing your allocation to loosing sectors) and selling high (decreasing the allocation to winning sectors) is what rebalancing is all about.
Hi Skorka - Not knowing anything more about your wife's situation, I would suggest saving as much as she can! It might make sense to max the contributions to her 403b as those are not taxed federally.
Trecia, it depends on what investments are available in the new company plan. If they are good AND have low expenses, rolling over to them could be fine. Of course, if they do NOT have a ROTH option, you will need to roll that ROTH portion to a ROTH IRA. Use a discount brokerage like Schwab, TD Ameritrade, Fideltiy, Vanguard, or Scott Trade. If you don't know what to invest in I suggest looking at Vanguard target retirement date funds.
Rachael, I am reading the kiplinger article now and will respond.
Hi Ken - Good question. I'm guessing you are 60 and could even make withdrawals from your 401k if you wanted to without any tax consequenses (you would give up the tax deferral feature on those assets though). Capital gains are currently taxed at pretty low rates, lower than the higher tax brackets, and at low levels of income capital gains are taxed at zero. Check with a tax professional on how to best plan.
Kiplinger article: A New Rule of Thumb for Tapping Savings - Everyone should read this. If you do have a year in retirement with little taxable income you may want to take an IRA distribution even if you don't have to as you may pay little or no tax on it. CAUTION: be sure to model this with your tax preparer before you proceed.
tks, I would suggest putting some of the proceeds from your home into an emergency fund (health care, etc) and a separate fund allocated for special purposes (wedding for your daughter, vacation, etc.) the remainder to be invested depends on when you think you may need the money and tax situation. For the shorter timeframe, short-term bond funds and if in a high tax bracket, tax exempt bonds and if lower income tax bracket, taxable bonds. Longer timeframe investments would benefit from Intermediate term bond funds. Anything over ten year investment timeframe, S&P 500 stock index funds.
That's about all the time we have for today!
Thank you to all of the NAPFA advisers who answered questions today, and thank you to everyone who asked questions.
If we weren't able to get to you, or if you have more burning questions, you can join us for our next event on December 11.