Author Topic: 401K and Pursuit of FI help  (Read 2164 times)


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401K and Pursuit of FI help
« on: July 05, 2013, 08:04:02 AM »
First time poster, long time reader. I am a 31 single Male who is interested in pursuing Early retirement through FI, and would like some help from my fellow mustachians in choosing the right asset allocation for my 401k plan (4% company match), and setting up my future investments with the goal of Financial Independence in about 10 years.

My current expenses are around 2,700/ month (rent, groceries, insurances) and I have 7,000/ month that I am putting toward the  66,680 that I have left in student loan debt @ 5.375% . My goal is to pay that  off in the next 10-12 months. I already put a lump sum payment of 66,000 earlier this year, I am trying to get rid of this debt like its an emergency.  Not sure if this is so wise though.

Here are my financial specifics:

Emergency fund: $1,000 (purposefully low to pay off student loan debt)

RothIRA with Vangaurd invested in their Target 2045 Fund with 27,000 that I can no longer contribute to because of income limitations

Rollover IRA with Vangaurd invested in VBIAX with 10,000

Brokerage account with:
10,000 in VTSAX
100 in VYM
100 in VIM
1,000 total in various dividend stocks (GE, PFO, GIM, EDR, BKCC, BSI, AKS)

The 401K plan options break down as follows, I donít know which funds would be best to invest in, I currently hold 70% Vanguard Mid-Cap Index-Signal and 30% PIMCO solely because they have the lowest expense ratios and can offer some growth, but that is from guessing.                   

JPMCB Stable Aset income Fund-F                  ER: 0.47
PIMCO Total Return-P                                     ER: 0.56
JPMCB Smart Retirement Income-C10            ER: 0.64
JPMCB SmartRetirement 2015-C10                 ER: 0.80
JPMCB SmartRetirement 2020-C10                 ER: 0.90
JPMCB SmartRetirement 2025-C10                 ER: 0.99
JPMCB SmartRetirement 2030-C10                 ER: 1.06
JPMCB SmartRetirement 2035-C10                 ER: 1.12
JPMCB SmartRetirement 2040-C10                 ER: 1.13
JPMCB SmartRetirement 2045-C10                 ER: 1.15
JPMCB SmartRetirement 2050-C10                 ER: 1.19
JPMCB SmartRetirement 2055-C10                 ER: 1.19
JPMorgan Equity Income-R5                            ER: 0.67
JPMOrgan Equity Index-Select                        ER: 0.69
Oakmark-I                                                       ER: 1.11
Fidelity COntrafund                                         ER: 0.92
Aston Fairpoint MidCap-N                                ER: 1.15
Vanguard Mid-Cap Index-Signal                      ER: 0.12
Neuberger Berman Genesis-Trust                   ER: 1.14
American Funds EuroPacific Growth-R5           ER:0.55

Any help would be much appreciated. Thanks.