Author Topic: 401K Help  (Read 397 times)

FIPharm

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401K Help
« on: January 11, 2019, 11:17:52 AM »
Hey MMMs,

I was wondering if you guys could assist me with some recommendations on my available options (attached)

Option 1
100% - VINIX

Option 2 -
80% - VINIX
20% - VEXAX

Would either of these be good options for me?

Thank you for your time and consideration.

E

35andFI

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Re: 401K Help
« Reply #1 on: January 11, 2019, 11:25:29 AM »
I won't tell you what you should invest in but I will say that I would feel comfortable investing in either of those myself.

I (personally) would go with 100% VINIX but you can't go wrong with either choice. Just keep your whole asset allocation in mind.

LetItGrow

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Re: 401K Help
« Reply #2 on: January 12, 2019, 05:19:37 AM »
I would also just do 100% VINIX, depending on how my overall portfolio looked. Wait a few years and then evaluate my overall situation. If you are just starting out, focus on saving, saving, saving.

terran

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Re: 401K Help
« Reply #3 on: January 12, 2019, 06:55:10 AM »
Yes, either of those would be perfectly reasonable. Option 2 will be almost the the same as the often recommended VTSAX.

If the 401(k) is all of your investments I'd probably throw in some VTIAX for international exposure too. 20-40% would be reasonable.
« Last Edit: January 12, 2019, 06:57:03 AM by terran »

radram

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Re: 401K Help
« Reply #4 on: January 12, 2019, 07:32:52 AM »
Yes, either of those would be perfectly reasonable. Option 2 will be almost the the same as the often recommended VTSAX.

If the 401(k) is all of your investments I'd probably throw in some VTIAX for international exposure too. 20-40% would be reasonable.

I like this advice the best, while also agreeing that just getting started is the most important. I would go 10% international, making it 70%,20%,10%.


Also, your options are FANTASTIC. I have been at places where the options just sucked. Kudos to your plan administrator.

Congratulations on getting started!

Indexer

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Re: 401K Help
« Reply #5 on: January 12, 2019, 09:21:59 AM »
The Boglehead answer would be...

42% 500 index  VINIX
18% extended market VEXAX
40% Total international  VTIAX

This gives you a 70/30 split between large cap and small/mid cap which is a good representation of Total Stock, and a 60/40 domestic/international breakdown which is what Vanguard believes is the most efficient breakdown for US vs international.

Your 401k is awesome, but also strange. You have a few really awesome options and then a whole bunch of dog $#!%.

FIPharm

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Re: 401K Help
« Reply #6 on: January 12, 2019, 02:17:35 PM »
Hey MMMs,

Thanks for all your help.

I would also just do 100% VINIX, depending on how my overall portfolio looked. Wait a few years and then evaluate my overall situation. If you are just starting out, focus on saving, saving, saving.

Yeah - Thanks this 401K is just a part of my total asset allocation across multiple accounts. I have other investment accounts (Roth IRA, taxable investment accounts, HSA) where I can adjust my total asset allocation for my portfolio. I'm pretty aggressive right now with 100% stocks asset allocation or 90% stock / 10% bond asset allocation since I'm fairly young (30) and having a pretty high savings rate.

The Boglehead answer would be...

42% 500 index  VINIX
18% extended market VEXAX
40% Total international  VTIAX

This gives you a 70/30 split between large cap and small/mid cap which is a good representation of Total Stock, and a 60/40 domestic/international breakdown which is what Vanguard believes is the most efficient breakdown for US vs international.

Your 401k is awesome, but also strange. You have a few really awesome options and then a whole bunch of dog $#!%.

Thanks, I was trying to follow JL collins stock series and he said I probably don't need to invest in international but I do see the benefit of having some international exposure.

Could you and radram pick/tell me which funds are awesome? I'm not that very good at it. . . I was honestly just looking at the expense ratios / low fee funds. . . The management service wanted me to invest in the Target Date Fund and I decided to cancel the service and do it on my own.

E


Indexer

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Re: 401K Help
« Reply #7 on: January 12, 2019, 08:56:19 PM »

Could you and radram pick/tell me which funds are awesome? I'm not that very good at it. . . I was honestly just looking at the expense ratios / low fee funds. . . The management service wanted me to invest in the Target Date Fund and I decided to cancel the service and do it on my own.


You're welcome. Glad I could help.

Awesome = the low cost well diversified funds. VINIX, VEXAX, and VTIAX all meet that criteria. Your other fund options are pretty expensive.

radram

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Re: 401K Help
« Reply #8 on: January 13, 2019, 07:33:34 AM »

Could you and radram pick/tell me which funds are awesome? I'm not that very good at it. . . I was honestly just looking at the expense ratios / low fee funds. . . The management service wanted me to invest in the Target Date Fund and I decided to cancel the service and do it on my own.


You're welcome. Glad I could help.

Awesome = the low cost well diversified funds. VINIX, VEXAX, and VTIAX all meet that criteria. Your other fund options are pretty expensive.

I agree and have nothing to add :)