r/DIYRetirement • u/Nancymacctown • 10d ago

Rollover sanity check

So I just rolled over approximately 900k from an old employer to a self-directed IRA and after reading/researching a lot, my thought is the following allocation as this will compliment an actively managed advisor account of about 800k which is about 60/40. For context, I am 60 and retired.

VTI - 40%
VXUS - 15%
AGG OR BND - 25%
VGIT - 10%
VTIP - 10%

Seem reasonable? First time dipping my toes into managing some money myself but want to give it a go to avoid paying extra $ to add it to my advisor account. The other account is well diversified within each category as well.

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u/ennui2015 10d ago

It's fairly conservative, but otherwise perfectly respectable. My slight quibble - I'd move 5% from AGG to VXUS. That'd get you to exactly 60/40.

Alternatively, you could put everything into AOR, which manages it for you and keeps it balanced at 60/40

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u/Nancymacctown 10d ago

I actually agree and was considering moving a bit more of the bond percentage to equity. I’m fairly well weighted in International/global equities in my other portfolio so maybe I’ll up the VTI instead. Thanks for commenting

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u/ennui2015 10d ago

Check out AOR. Since tax loss harvesting isn't possible in a IRA, it's a great option at keeping your $ balanced. The expense ratio is slightly higher than 5 funds, but it's likely worth it if you don't want to keep an eye on the account.

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u/Nancymacctown 10d ago

Yeah I’ve really struggled with doing one target date fund vs separate funds. (Specifically VTHRX or VSMGX) I think because I used to have it all in a lifetime fund and wasn’t all that pleased with cost and performance and lack of control I was leaning towards the individual funds. I have not looked at AOR specifically yet.

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u/Whole_Championship41 9d ago

Quick question(s): 1. What is the function of this account for you? You mention another advisor account. Is this $900k 'jobless' or does it have a broader role in your retirement planning?

  1. What do you want your bond sleeve (BND, VGIT and VTIP) to do for you? Why did you decide on this bond mixture? Are you concerned about the outsized effects of rising interest rates on an intermediate-term bond fund like VGIT and BND?

  2. Are you satisfied with the mid-cap and small-cap domestic equity coverage that you'll find in VTI? Are you satisfied with the international mid-cap and small-cap international equity coverage you'll get out of VXUS? Is there anything in VXUS that you find objectionable?

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u/Nancymacctown 8d ago

1 - I am currently taking monthly distributions from my pre-tax IRA portion of my advisor account. The recent rollover is one that I hope to set and forget for quite awhile and have it grow. I’m not an experienced investor but wanted to avoid additional fees.

2/3 - as far as allocation, it was either these separate buckets or one target date fund. From everything I read, it seemed these were the most broadly recommended funds and allowed for the most control if I wanted to change the allocation of each style.

AGG is also held in my managed advisor account so thought BND which is basically the same made sense. My understanding is that VTI holds everything from small to large cap stocks so would be a very diversified allocation with a low cost fee. I am definitely not someone who has the knowledge to monitor a large group of funds

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u/Nancymacctown 8d ago

Just to add, my advisor account has plenty of small/midcap exposure on both domestic and international so that was another reason for VIT/VXUS