Mirroring means 6 funds in total, whereas with the scheme I outlined you will have at most 4 funds across both plans. Mirroring is NOT inherently a bad idea, it's just that you should view your portfolio as a whole, and minimize the number of funds you carry. Surely you also have Roth IRA? And *gasp* you aren't carrying bonds in the Roth IRA?? [ Edit: never mind, your first post did mention "backdoor Roth", so you DO have a Roth IRA ]Could you explain why I should use my current 403b plan exclusively to US equities? I was planning on having the new 403b and old 403b mirror each other in allocations. Is this a bad idea?
It's not necessary that you should only have US equities in the current plan; the idea is to house the respective asset class where the expense ratio is the lowest (disregarding very minor ER differences, such as 0.02% vs 0.04% as is the case with my current 401k vs older 401k). If your current 403(b) plan has a US equities offering at 0.2% and the old one has 0.05%, then US equities to the extent possible go to the older 403(b) plan. My statement there is a *suggestion* as to how you should think about the portfolio as a whole.
Statistics: Posted by lakpr — Sat Aug 31, 2024 11:59 pm — Replies 9 — Views 331