By: Revanche

A Pension and Rollover IRA

August 14, 2010

I’m now the proud owner of the Vanguard Star Fund.

The first two years of investing 2% of my paltry entry level salary on my behalf by my previous employer was, as expected, not highly lucrative.  The grand total didn’t even reach Vanguard’s $3000 minimum on the majority of their Rollover IRA options so I had to go with the Star Fund for the immediate rollover.

Now I’m thinking of rolling the money from the 401(a) and 403(b) into the same IRA and reallocating.  The allocation’s gotten a bit messy over the years:

Emerging Markets Stock Index Fund
Mid-Cap Growth Fund
Small-Cap Index Fund
Total Stock Market Index Fund
Vanguard International Value Fund
Target Retirement 2045 Fund
STAR Fund
And in the ROTH: Long-Term Treasury Fund

Overall, it’s crept over to 82% stocks and 18% bonds. 

This brings me within squeaking distance of hitting the $40K mark in the retirement  funds. Despite my previous resolution not to, I’ve started making contributions to the employer-sponsored retirement plan in order to get the maximum match.  It’s not a lot, but I couldn’t stand going any longer without some savings dedicated to retirement. Once I streamline the three accounts above, and pick a new allocation, I should only have 3 accounts, instead of 5.

7 Responses to “A Pension and Rollover IRA”

  1. Nicole says:

    Sounds good to me!

  2. Danielle says:

    I had a star fund once. Not because I knew anything about it, but because my middle name is Starr. That’s how I invest.

  3. I just enrolled in my employer’s retirement plan. I’m kind of excited =)

  4. Fig says:

    I don’t have a star fund, but I do have a Vanguard fund. I love Vanguard! It took me forever to save up the three grand to get it, so I’m pretty happy that I managed to do that.

  5. Serendipity says:

    This post is definately making me realize I need to be more proactive towards my retirement instead of just relying on my current 401 K I have through work. You are my new retirement guru.

  6. My first IRA was–and still is–in STAR. I got it in 1984! My son’s first IRA is also in STAR b/c of the low minimums. Did you notice the yearly fee on accts that don’t have a minimum balance? I was able to avoid that w/ my son’s by putting it under our family umbrella.

    Anyway, I’m suggesting that you get other Vanguard funds so you can mmet that minimum–they consider all your accounts together.

  7. […] 5 years ago: I was so close to having $40K in retirement savings! […]

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