The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: Euphorbia on November 20, 2018, 09:11:53 AM
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I was wondering if someone could give advice regarding asset allocation in my 401(k). 47 years old; plan on working about 10 more years. Here are my choices:
Equity/Stock
American Europacific Growth RERGX
American growth Fund RGAGX
Artisan Mid Cap Fund Invest CL ARTMX
Artisan Mid Cap Value ARTQX
Blackrock Extended FD CL K BEEMT
Blackrock MSCI ACWI EX CL BMSIT
DFA US Sustainability Core DFSIX
Dodge & Cox International DODFX
Fidelity Real Estate Idx Instl FSRNX
Hotchkis and Wiley Sml CP VL HWSIX
MFS InTL New Discovery MIDAX
MFS Value Fund MEIAX
Morgan Stanley Emrg Mrts MMMPX
Morgan Stanley Glbl Real MRLAX
Vanguard Explorer Fund VEXRX
Vanguard Instl 500 IDX Trust VLCSP
Bond/Fixed Income
Dodge & Cox Income DODIX
John Hancock Global ABS CL JHAIX
MFS Emerging Markets DBT CL A MEDAX
State Street Tips Index ZTIPST
Templeton Global Total CL ADV TTRZX
Vanguard High Yield Corp Adm VWEAX
Vanguard Instl Total bnd ID TR VTBMK
Vanguard Shrt Trm BD Indx Inst VBITX
Money Market
Blackrock FedFund Instl CL AZBGP
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Asset allocation help or fund selection help? Without context, a 10 year time horizon would imply a roughly 70/30 stock/bond mix according to Vanguard's target date fund for 2030. https://investor.vanguard.com/mutual-funds/profile/portfolio/vthrx
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Vanguard Instl 500 IDX Trust VLCSP
Vanguard Instl Total bnd ID TR VTBMK
allocate between these two at your desired stock:bond ratio
you left out most important part, expense ratios, so I'm kinda guessing. Don't see any obviously decent Intl fund.
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Look for low "expense ratios", which both save you money on fees and indicate a passive index fund. Passive funds don't participate in the market competition where half lose and half win. And since competing also involves spending money, passive funds actually beat most of the market (the S&P 500 beats ~80% of active funds, for example).
The following is a "global" fund that includes both U.S. and international equities:
Blackrock MSCI ACWI EX CL BMSIT
So you could pour all of your equity allocation into "one fund", knowing this one fund covers stocks from all over the world (Apple, Toyota, Alibaba, etc). The expense ratio of 0.11% (per year) is in the low range.
The problem is if you try to split U.S. and international, the other international options don't look ideal. For example, Dodge & Cox International charges 0.65% in annual fees, which is higher than you'd want.
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Updated with Expense Ratios.
Equity/Stock Expense Ratio
American Europacific Growth RERGX 0.49%
American Growth Fund RGAGX 0.33%
Artisan Mid Cap Fund Invest CL ARTMX 1.18%
Artisan Mid Cap Value ARTQX 1.17%
Blackrock Extended FD CL K BEEMT 0.06%
Blackrock MSCI ACWI EX CL BMSIT 0.10%
DFA US Sustainability Core DFSIX 0.26%
Dodge & Cox International DODFX 0.63%
Fidelity Real Estate Idx Instl FSRNX 0.07%
Hotchkis and Wiley Sml CP VL HWSIX 1.02%
MFS InTL New Discovery MIDAX 1.31%
MFS Value Fund MEIAX 0.84%
Morgan Stanley Emrg Mrts MMMPX 0.98%
Morgan Stanley Glbl Real MRLAX 1.02%
Vanguard Explorer Fund VEXRX 0.32%
Vanguard Instl 500 IDX Trust VLCSP 0.01%
Bond/Fixed Income
Dodge & Cox Income DODIX 0.43%
John Hancock Global ABS CL JHAIX 1.33%
MFS Emerging Markets DBT CL A MEDAX 1.09%
State Street Tips Index ZTIPST 0.02%
Templeton Global Total CL ADV TTRZX 0.87%
Vanguard High Yield Corp Adm VWEAX 0.13%
Vanguard Instl Total bnd ID TR VTBMK 0.03%
Vanguard Inter Treas Indx Inst VIIGX 0.05%
Vanguard Short Trm BD Indx Inst VBITX 0.05%
Money Market
Blackrock FedFund Instl CL AZBGP 0.19%
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Vanguard Target 2030 holds 30% bonds, so I'd go with Vanguard's expertise and use the low expense ratio bond fund. If you want a really easy portfolio:
33.3% Vanguard Total Bond
33.3% Blackrock MSCI ACWI EX (roughly half US, half international)
33.3% Vanguard Instl 500 IDX Trust
But you could also avoid international and use:
30% Vanguard Total Bond
70% Vanguard Instl 500 IDX Trust
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Thank you for the advice. I believe that Blackrock MSCI ACWI EX CL is almost entirely foreign stocks and have adjusted accordingly.