Author Topic: New 401k  (Read 505 times)

caracarn

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New 401k
« on: March 29, 2019, 06:16:31 AM »
So started my new job a few weeks back and now that I got my first pay could finally enroll in 401(k).  My choices to invest (there is a company stock fund as well, but I pulled that out to avoid identifying info as well as the fact that I have no desire to invest there as I prefer the basic index investing). 

So given that I normally do the 2 fund portfolio and have my bond fund in my rollover IRA already, I think my only option is the first one as the rest are basic.  These are institutional shares so the expense ration on FXAIX is 0.015%, which is higher than my Admiral shares in VTSAX and I have no Vanguard choices since the 401(k) is with Fidelity. 

So do I just plow everything into FXAIX or would you do something else with the options listed.  Sorry the data formatted so strangely when I posted but I think it is still useful to make out the choices.

Name/Inception Date   Asset Class   Category   1 Year   3 Year   5 Year   10 Year/LOF*   Returns As Of   Bench- mark
FID 500 INDEX (FXAIX)
02/17/1988
Stock Investments   Large Cap   4.67%   15.26%   10.66%   16.66%   02/28/2019   Show
FID CAP APPREC K (FCAKX)
11/26/1986
Stock Investments   Large Cap   1.49%   13.75%   8.07%   17.09%   02/28/2019   Show
FID CONTRAFUND K (FCNKX)
05/17/1967
Stock Investments   Large Cap   2.82%   17.29%   11.24%   16.88%   02/28/2019   Show
MFS VALUE R6 (MEIKX)
01/02/1996
Stock Investments   Large Cap   1.18%   12.26%   8.42%   14.78%   02/28/2019   Show
FID LOW PRICED STK K (FLPKX)
12/27/1989
Stock Investments   Mid-Cap   -0.68%   10.97%   6.73%   16.02%   02/28/2019   Show
FID VALUE K (FVLKX)
12/01/1978
Stock Investments   Mid-Cap   -0.78%   11.08%   5.69%   17.00%   02/28/2019   Show
WF COMMON STOCK R6 (SCSRX)
11/30/2000
Stock Investments   Mid-Cap   4.49%   14.71%   7.39%   16.29%   02/28/2019   Show
JPM US SMALL CO R6 (JUSMX)
11/04/1993
Stock Investments   Small Cap   3.21%   13.63%   6.77%   17.44%   02/28/2019   Show
FID DIVERSIFD INTL K (FDIKX)
12/27/1991
Stock Investments   International   -6.95%   7.41%   2.41%   10.04%   02/28/2019   Show
FID GLB EX US IDX (FSGGX)
09/08/2011
Stock Investments   International   -5.87%   10.76%   2.51%   5.17%   02/28/2019   Show
HTFD INTL OP HLS IA (HIAOX)
07/02/1990
Stock Investments   International   -10.54%   7.99%   2.52%   10.33%   02/28/2019   Show
FIAM BLEND TD 2005 Q
10/31/2007
Blended Fund Investments*   N/A   1.76%   6.59%   4.01%   7.84%   02/28/2019   Show
FIAM BLEND TD 2010 Q
10/31/2007
Blended Fund Investments*   N/A   1.68%   7.64%   4.55%   8.98%   02/28/2019   Show
FIAM BLEND TD 2015 Q
10/31/2007
Blended Fund Investments*   N/A   1.47%   8.67%   5.07%   9.51%   02/28/2019   Show
FIAM BLEND TD 2020 Q
10/31/2007
Blended Fund Investments*   N/A   1.42%   9.36%   5.42%   10.51%   02/28/2019   Show
FIAM BLEND TD 2025 Q
10/31/2007
Blended Fund Investments*   N/A   1.24%   10.04%   5.71%   11.29%   02/28/2019   Show
FIAM BLEND TD 2030 Q
10/31/2007
Blended Fund Investments*   N/A   1.01%   11.61%   6.40%   12.10%   02/28/2019   Show
FIAM BLEND TD 2035 Q
10/31/2007
Blended Fund Investments*   N/A   0.63%   12.69%   6.87%   12.72%   02/28/2019   Show
FIAM BLEND TD 2040 Q
10/31/2007
Blended Fund Investments*   N/A   0.52%   12.71%   6.87%   12.86%   02/28/2019   Show
FIAM BLEND TD 2045 Q
10/31/2007
Blended Fund Investments*   N/A   0.51%   12.71%   6.88%   12.99%   02/28/2019   Show
FIAM BLEND TD 2050 Q
10/31/2007
Blended Fund Investments*   N/A   0.52%   12.75%   6.89%   13.16%   02/28/2019   Show
FIAM BLEND TD 2055 Q
07/12/2011
Blended Fund Investments*   N/A   0.54%   12.76%   6.88%   8.51%   02/28/2019   Show
FIAM BLEND TD 2060 Q
05/06/2015
Blended Fund Investments*   N/A   0.57%   12.78%   N/A   5.96%   02/28/2019   Show
FIAM BLEND TD INC Q
10/31/2007
Blended Fund Investments*   N/A   1.90%   5.23%   3.29%   5.91%   02/28/2019   Show
FID BALANCED K (FBAKX)
11/06/1986
Blended Fund Investments*   N/A   3.46%   11.11%   7.29%   12.61%   02/28/2019   Show
PIM TOTAL RT INST (PTTRX)
05/11/1987
Bond Investments   Income   2.63%   2.78%   2.43%   4.87%   02/28/2019   Show
FIMM GOVT INST (FRGXX)
07/25/1985
7 day yield as of
02/28/2019   2.33%
Short Term Investments   N/A   1.94%   1.06%   0.65%   0.35%   02/28/2019   Show

TheHardenedInvestor

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New 401k
« Reply #1 on: March 29, 2019, 06:20:56 AM »
No question, FXAIX is what I would do. Set it and forget it.

TexasRunner

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Re: New 401k
« Reply #2 on: March 29, 2019, 12:13:52 PM »
No question, FXAIX is what I would do. Set it and forget it.

+1 exactly this.

Until the 401k gets up to 250k or more, just go 100% stocks and do your diversification outside into cheaper options (Like Vanguard).

caracarn

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Re: New 401k
« Reply #3 on: March 29, 2019, 05:03:17 PM »
Thanks.  That's what I figured.  Thanks for the target TexasRunner.  Still hoping to FIRE in 10, so not likely to have that level in this 401k, but we'll see.

kingxiaodi

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Re: New 401k
« Reply #4 on: March 29, 2019, 05:16:09 PM »
So given that I normally do the 2 fund portfolio and have my bond fund in my rollover IRA already, I think my only option is the first one as the rest are basic.  These are institutional shares so the expense ration on FXAIX is 0.015%, which is higher than my Admiral shares in VTSAX and I have no Vanguard choices since the 401(k) is with Fidelity. 

Uh, isn't FXAIX expense (0.015%) lower than VTSAX (0.04%)? It's pretty absurdly low.

Not sure my advice is worth anything, but my own 401k offers FXAIX, and it's the only thing I invest in there.


Thanks.  That's what I figured.  Thanks for the target TexasRunner.  Still hoping to FIRE in 10, so not likely to have that level in this 401k, but we'll see.

Why wouldn't you hit 250k? 19k per year * 9 years gives you 171k. Assuming 5% returns per year and assuming that those returns only come on money already in the account (so in 2019 you would get no market returns, in 2020 you would get returns only on the 19k, etc.) I come up with ~$239k in the account at the end of 2028. That also ignores any match. Seems reasonable that you could very well hit 250k, although it might be in year 8 or 9.

caracarn

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Re: New 401k
« Reply #5 on: April 01, 2019, 07:14:19 AM »
So given that I normally do the 2 fund portfolio and have my bond fund in my rollover IRA already, I think my only option is the first one as the rest are basic.  These are institutional shares so the expense ration on FXAIX is 0.015%, which is higher than my Admiral shares in VTSAX and I have no Vanguard choices since the 401(k) is with Fidelity. 

Uh, isn't FXAIX expense (0.015%) lower than VTSAX (0.04%)? It's pretty absurdly low.

Not sure my advice is worth anything, but my own 401k offers FXAIX, and it's the only thing I invest in there.


Thanks.  That's what I figured.  Thanks for the target TexasRunner.  Still hoping to FIRE in 10, so not likely to have that level in this 401k, but we'll see.

Why wouldn't you hit 250k? 19k per year * 9 years gives you 171k. Assuming 5% returns per year and assuming that those returns only come on money already in the account (so in 2019 you would get no market returns, in 2020 you would get returns only on the 19k, etc.) I come up with ~$239k in the account at the end of 2028. That also ignores any match. Seems reasonable that you could very well hit 250k, although it might be in year 8 or 9.
Yeah, I typed the first item wrong, thanks for pointing out my error.  You are right, very low, so should be good.

With all our other expenses with the kids we have never hit the 401(k) max, so that is why not.  I put away 6%, get another 3% employer match, but at this new job that is capped at $3,000 per year, so adding more will not give me a match.  I am unclear on if adding more to the 401(k) is better than doing things in an IRA, etc.  Some comments on that would be excellent.

TexasRunner

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Re: New 401k
« Reply #6 on: April 01, 2019, 08:30:46 AM »
Yeah, I typed the first item wrong, thanks for pointing out my error.  You are right, very low, so should be good.

With all our other expenses with the kids we have never hit the 401(k) max, so that is why not.  I put away 6%, get another 3% employer match, but at this new job that is capped at $3,000 per year, so adding more will not give me a match.  I am unclear on if adding more to the 401(k) is better than doing things in an IRA, etc.  Some comments on that would be excellent.



Max out everything....  If you can.  But you should!

IRA's (IMO) are slightly better than 401k's only because they are entirely within your control.  If you have a good 401k option through your employer, then then are pretty much equal.  Might be some slight benefit from the 401k being funded tax-free vs the IRA being funded with taxed dollars that you then get to 'un-tax' at filing time.  Overall, they are basically the same.  Investment order says IRA first, but they are pretty much equal.