Author Topic: 457 Investment Options  (Read 306 times)

anxiousclothing

  • 5 O'Clock Shadow
  • *
  • Posts: 17
457 Investment Options
« on: August 08, 2018, 05:22:20 PM »
Super long story short. I recently found MMM and have been trying to make significant changes in our financial lives. I have access to a 457 at work and currently only have $10,000 total in the account with the below allocation in funds. I am 38 and would like to retire before 55 if possible.
Vanguard Target Retirement Fund 2035 85% Allocation
Vanguard Target Retirement Fund 2045 15% Allocation
Attached is PDF of the different funds I have access to you.  What is my best option?

Thank you in advance.

K-12FI

  • 5 O'Clock Shadow
  • *
  • Posts: 51
Re: 457 Investment Options
« Reply #1 on: August 08, 2018, 05:31:26 PM »
For simplicity, look at VITSX (Total US Institutional) and VTIAX (Vanguard International).

benstagram

  • 5 O'Clock Shadow
  • *
  • Posts: 18
Re: 457 Investment Options
« Reply #2 on: August 08, 2018, 05:44:47 PM »
For simplicity, look at VITSX (Total US Institutional)

2nd. I'm new here and have a thread about setting up my 457... the advice was to go for the Vanguard total stock fund which I'll be aggressively funding.

anxiousclothing

  • 5 O'Clock Shadow
  • *
  • Posts: 17
Re: 457 Investment Options
« Reply #3 on: August 08, 2018, 06:01:27 PM »
For simplicity, look at VITSX (Total US Institutional) and VTIAX (Vanguard International).

Do you have a recommendation on allocation?

K-12FI

  • 5 O'Clock Shadow
  • *
  • Posts: 51
Re: 457 Investment Options
« Reply #4 on: August 08, 2018, 06:01:50 PM »
For simplicity, look at VITSX (Total US Institutional)

2nd. I'm new here and have a thread about setting up my 457... the advice was to go for the Vanguard total stock fund which I'll be aggressively funding.

I'd normally also recommend a tilt towards small, value, and/or EM, but not too familiar with the offerings available.

K-12FI

  • 5 O'Clock Shadow
  • *
  • Posts: 51
Re: 457 Investment Options
« Reply #5 on: August 08, 2018, 06:02:58 PM »
For simplicity, look at VITSX (Total US Institutional) and VTIAX (Vanguard International).

Do you have a recommendation on allocation?

50/50. Rebalance once a year, or when more than 5% out of sync (say, 45/55).

tophdna

  • 5 O'Clock Shadow
  • *
  • Posts: 37
Re: 457 Investment Options
« Reply #6 on: August 09, 2018, 11:01:35 AM »
Vanguard Total Stock Market Index Fund Institutional Shares (VITSX) is listed as having a NET expense ratio as 10.79%. I looked it up and I see the 0.035%

What is the 10.79%? Kind of alarmed me at first.

CoffeeR

  • Stubble
  • **
  • Posts: 126
  • Location: Southwest
Re: 457 Investment Options
« Reply #7 on: August 09, 2018, 11:12:18 AM »
For simplicity, look at VITSX (Total US Institutional) and VTIAX (Vanguard International).

Do you have a recommendation on allocation?
80% (US) / 20% (international). If you want to mimic the world it is closer to 55% (US) / 45% (international). Personally I would not go higher than 40% international.
« Last Edit: August 09, 2018, 11:37:13 AM by CoffeeR »

letired

  • Pencil Stache
  • ****
  • Posts: 728
  • Location: Texas
    • Needs More Glitter
Re: 457 Investment Options
« Reply #8 on: August 09, 2018, 11:33:16 AM »
Alternately, those are good expense ratios on the target date funds, so you're probably fine to just leave it where you've got it, though I don't think I understand the point of splitting it between two target dates.

CoffeeR

  • Stubble
  • **
  • Posts: 126
  • Location: Southwest
Re: 457 Investment Options
« Reply #9 on: August 09, 2018, 11:39:13 AM »
Alternately, those are good expense ratios on the target date funds, so you're probably fine to just leave it where you've got it, though I don't think I understand the point of splitting it between two target dates.
Agreed. In general, with less than < $100K I would prefer one target date fund (if expenses are low). Keep it simple.

anxiousclothing

  • 5 O'Clock Shadow
  • *
  • Posts: 17
Re: 457 Investment Options
« Reply #10 on: August 09, 2018, 12:21:52 PM »
Alternately, those are good expense ratios on the target date funds, so you're probably fine to just leave it where you've got it, though I don't think I understand the point of splitting it between two target dates.
Agreed. In general, with less than < $100K I would prefer one target date fund (if expenses are low). Keep it simple.

I thought so too. I didn't initially choose. It was being managed by Fidelity. As I have expanded my knowledge by reading MMM I found it as is.

Thank you for the advice.