The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: aes421 on October 25, 2018, 12:04:41 PM
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Hello all,
I am new to this investment thing. I have been working for 2 years now and have 40k saved up in my 401k. I just recently realized we have options of what fund to invest in. By default I am in a "Smart Mix Aggressive Fund"
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40% Large Cap
17% International
10% Mid/Small Cap
10% Emerging Markets Stock
9% Real estate
5% High yield bonds
5% Investment grade bonds
3% Emerging market bonds
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The issue is it has a 0.62% fee. I discovered we have a "Stock Index Fund" that seems to just track the S&P 500 and has a 0.10% fee.
Would it be a smart idea for me to move all 40k over to the Stock Index fund? Will I lose any money by changing funds?
I also have 10k in VFINX S&P 500 Fund in my Roth IRA.
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The issue is it has a 0.62% fee. I discovered we have a "Stock Index Fund" that seems to just track the S&P 500 and has a 0.10% fee.
Would it be a smart idea for me to move all 40k over to the Stock Index fund?
Yes. Going for low expense ratio index funds is usually the best plan.
Will I lose any money by changing funds?
No. Because it's in a tax sheltered account there will be no tax consequence for selling/buying within the account.
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If their S&P 500 index fund charges a reasonable 0.10%, they might also have reasonable choices for international. Does your plan have any international index funds with low fees?
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If their S&P 500 index fund charges a reasonable 0.10%, they might also have reasonable choices for international. Does your plan have any international index funds with low fees?
0.10 is the lowest.
Stock Index Fund - 0.1%
International stock 0.60%
Mid Cap Stock - 0.61%
Emerging Market Stock - 0.88%
Small Cap Stock - 0.79%
Large Cap Stock -0.39%
Emerging Market Bond - 0.66%
Long Bond - 0.37%
US Bond - 0.28%
Conservative Mix - 0.36%
Moderate Mix - 0.52%
Aggressive Mix 0.64%