Okay. Took off the training wheels today…well maybe just one of them. I finally settled on a 80/20 asset allocation, and while I’m not done with the process yet, I took a major step today. You see, I am afflicted with what’s known as analysis paralysis — for good reason. Today I took care of the bond part by purchasing some Vanguard Total Bond Market ETF (BND) and iShares Barclays TIPS Bond Fund (TIP) in my Roth IRA (and incurring $28 in fees in the process) and reallocating some of my 401(k) to also include PIMCO Total Return Instl (PTTRX). The expense ratio on PTTRX are higher than BND, but it’s all I have to work with. Now I have cash in my non-retirement accounts, equities and bonds in my 401(k) and bonds in my Roth IRA.
So now I have to figure out how to purchase equities with my cash. I decided to use WellsTrade as my broker today. I was originally using TDAmeritrade, but was put off by the $10/trade fees. With WellsTrade, I can trade 100 times a year with no fees and $5.95/trade after that. I highly doubt I will trade twice a week. Although, I may trade a little more than normal because WellsTrade does not have dividend reinvestment. All in all, this deal saves me a boatload of money!
Now I’m almost ready to go. Let’s see some major market action so I can get my hands dirty!