My wife and I are both 74 are in the process of rebalancing our portfolio. The investments are as follows T Rowe Price 60% six funds Rollover IRA's Fidelity 15% two funds IRA's Vanguard 15% four index funds Roth and Regular IRA's Cash 10% Savings account @ 5% My wife feels it would be more convenient to have all at one fund group. During the past year have sold our holdings of stocks CEF's and Reits. Would appreciate to hear the pros and cons of reducing the number of funds and consolidating to one fund group.
Having all your accounts in one place especially after age 70-1/2 is convenient. Two things come to mind; As you have to take RMDs (Required minimum distributions) now, the one number from one custodian simplifies the withdrawal, more so if you take a monthly/quarterly withdrawal. It will simplify the allocation process. You don't mention the funds within each account, 8 funds may be diversified, or not. (Although I'm open to the idea that, say, two large cap funds are not identical, there's likely a high correlation between them, and this just needs to be taken into account.)
Two suggestions, related to your situation, but not the specific question.
If you do not itemize (for lack of enough deductions to pass the standard deduction) and if you do make year end charitable contributions, this year those contribution may be made directly from your broker to the charity as part of your RMD. You satisfy the RMD for this money without paying tax on it.
Second, have you considered converting any of your IRA money to your Roth iras? I offer a couple examples of this at
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and offer this to you as you appear to be a new poster here, and me, I find this to be two of the best recommendations that are not well publicized.JOE
I would post the ticker symbols here at minimum. If you post amounts, that may hep as well.
step 1- I would look at tax hit of "converting rollover and traditional IRA's to a Roth". You'll be doing some paperwork anyway, may as well add more in and reap some more benefits.
step 2- contact the "custodian of choice"- you have 60% with T Rowe Price, and they can help you with all this. I use TRP and get exceelent service whenever I need help (I did a Roth conversion earlier this year).
step 3- decide what assett allocation (stocks, bonds, cash) so when you do the consolidation and possibly conversion, you know what TYPES of funds you want.
All three fund families offer all of the choices you need. Our IRA's are at T. Rowe Price, I think they offer the best selection (for me) and I like the fact that if you buy a fund there the manager is usually career T. Rowe Price and won't be replaced every year as Fidelity has a habit of doing. If bond funds are a priority it's hard to beat Vanguard's low expenses but for stock funds I like Price better. We use only 4 funds. Capital Appreciation, International Growth & Income, Mid Cap Value, and Summit Cash Reserves.
I have other assets outside of T. Rowe Price but they are not retirement funds, they are taxable.
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