Hi All – Quick investing question and I’d love to hear your thoughts –
Bit of background: I just turned 25, living at home, and I have a decently solid emergency fund for my situation. I started my F.I.R.E. journey this year and maxed out my Roth for 2019 in February. Recently, I maxed out my Roth for 2020 on March 23rd (the current low even though I swear I wasn’t timing, and personally I’m hoping the market drops more). I also opened a brokerage account and invested 5k on the 23rd. This is all in VTSAX, other than 3k in VTIAX (International Total Stock) in my Roth.
I have about 5k in my emergency fund. I’m only paying for gas and some groceries here and there for my parents and when I’m staying with the girlfriend. I am still working remotely in a school district.
So…
I opened a 457(b) account a couple of weeks ago and started putting 100% of my paycheck in. My balance in the account is at about $4,000 which leads to my question. I have some great options available.
Currently for the 457(b) allocation I have:
5% Vanguard Developing Markets Admiral (VTMGX)
50% Vanguard US Growth Admiral (VWUAX)
45% Fidelity 500 Index (FXAIX)
My question is whether I should be so heavily in the Vanguard US Growth Admiral. This fund is managed by 5 advisors, has a gross Expense Ratio of .28% with as far as I know no other hidden fees. It invests in 256 large cap stocks, and 5.7% Foreign Holdings. Annualized Returns as of 12/31/19 for 10 years is 14.5%
Part of me likes that it’s a Vanguard Growth Fund, but all I’ve read about personally managed funds tells me to just stick it out with the index and go with the Fidelity 500 fund. I plan on holding these stocks for decades.
I’m thinking about changing my future allocations to:
5% Vanguard Developing Markets Admiral (VTMGX)
20% Vanguard US Growth Admiral (VWUAX)
75% Fidelity 500 Index (FXAIX)
Any thoughts? Love to hear your opinions.