Consolidating 403b accounts

You also know that, with simplicity as our guide, we look at our investing lives in two broad stages using just two funds: VBTLX (Vanguard Total Bond Market Index Fund) The wealth acquisition stage is when you are working and have earned income to save and invest.

You can see this effect by playing with this calculator: Vanguard Retirement Nest Egg Calculator You’ll also see that adding too great a percentage of bonds begins to hurt results.

Now remember that these studies are not carved in stone and like all calculators this one relies on making certain assumptions about the future.

This means you will sell shares in whichever asset class has performed better and buy shares in the one that has lagged.

Ideally you will do this in a tax-advantaged account like an IRA or 401k so you don’t have to pay tax on any capital gains.

You enter the wealth preservation stage once you step away from your job and regular paychecks and begin living on income from your investments.

At this point I recommend adding bonds to the portfolio.But using this framework of two stages and two funds, you have all the tools you need to find your own balance.In determining that balance you’ll also want to consider two additional factors: How much effort you are willing to apply and your risk tolerance.But this statistic is misleading, because a lot of borrowers think this means qualifying for some type of student loan forgiveness program. Actually, most borrowers qualify for student loan forgiveness through one of these "secret" ways.The secret is simple: sign up for a qualifying student loan repayment plan, and any remaining balance on your loan will be forgiven at the end of the plan. What's even better is that your income could be low enough to qualify for zero or minimal repayment, at which your loan will be forgiven at the end.For an explanation of our Advertising Policy, visit this page.

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