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New to investing and just rollover my 401k from employer sponsor to my own IRA. Do I just put everything in VTI or should I diversify? ~220k. Will be there about ~20-25 years

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That should work. Set it and forget it.

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VTI is the most diversified you can get

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VT = VTI + VXUS

Birds and the bees

Bonds in IRA/401k Domestic stocks in Roth international stocks in taxable brokerage Obviously you may have a lot more in one account than the others so you can mix/match but the distribution above is what I go with

International stocks are tax advantaged so you will pay less on gains

If you have your own IRA you won't be able to backdoor in the future?

Prorata rule taxes you for converting gains and pre-tax principle to Roth. In your case, if your full IRA balance is from the 401k rollover that is basically everything. I’m going to use round numbers and this is just how I understand it because I actually rolled my old Trad IRA into roth and paid the tax several years ago when I was still in a lower bracket. Let’s say you roll your 401k into an IRA account and have no other IRA funds. That account is worth 94,000 all in pretax money and capital appreciation. Then you add 6,000 in post tax dollars with the intent of converting that to Roth. Your total IRA balance is now 100,000. Again doesn’t matter if it is one account or 5. The prorata rule says if you concert 6,000 to Roth you can’t just choose the 6,000 in post tax money. You have to convert it weighted by the pre and post tax dollars in the account. In this case 94% pre-tax. That means 6,000 x 0.94 will be subject to whatever your marginal tax rate is because it will be treated as income.

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Can you roll to a new co? Makes backdoor IRA less of a headache

You can sometimes still roll a trad IRA into a Trad 401. Some plans allow it.

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