Author Topic: What should I invest in my solo 401k?  (Read 468 times)

worldwideox

  • 5 O'Clock Shadow
  • *
  • Posts: 4
What should I invest in my solo 401k?
« on: October 16, 2019, 07:43:38 AM »
Hi there - Been lurking for awhile now; first time posting. Iím relatively new to the FI game, but we're pretty gung-ho now, and my husband and I are both on board with getting our finances in order in pursuit of FI. Iím self-employed, and have had an asset-managed solo 401k for a couple years ó but Iíve just moved it over to Vanguard now.

Iíve got about $70k in there, am 42, and love my job. My husband is newly self-employed as well, 41, and is about to open a solo 401k (heís got a traditional IRA with about $20k, which heís also moving to Vanguard). Weíd love to be FI in about 15 years (we also have 3 kids, one of whom is a freshman in HS), but we donít really have any desire to stop working when that happens (so, we're open to continuing to grow these accounts beyond this time). Feels like a steep climb, but I'm optimistic.

What would you invest in for my solo 401k if you were me, especially considering expense ratios? (Weíre not too terribly risk-averse.)

1. Vanguardís TR 2045 Fund (VTIVX) ó nice and simple, or
2. The Three-Fund Portfolio a la Bogleheads, with Total Stock, Total International, and Total Bond (not sure yet what percentage to intíl), or
3. A straightforward 80% in VTSAX and 20% in VBTLX, more or less a la JL Collins' Stock Series?

I'm admittedly unsure the process of occasional portfolio rebalancing, but I'm reading a lot, am willing to learn, and it sounds like it doesn't have to be too complicated ...right?

We're also in the process of opening an HSA, and I may also open a Roth IRA soon. We also have a 529 for each of our kids, but we admittedly haven't done much with those ...yet.

Would love any of your $.02. Thanks in advance!

AdrianC

  • Handlebar Stache
  • *****
  • Posts: 1007
  • Location: Cincinnati
Re: What should I invest in my solo 401k?
« Reply #1 on: October 16, 2019, 09:45:02 AM »
We use the Vanguard LifeStrategy Growth Fund:

https://investor.vanguard.com/mutual-funds/lifestrategy/#/

The TR 2045 Fund (VTIVX) is just as good, if you're happy with 90% stocks.

You can use the three funds in the same proportions and save a little bit. I decided to go with the single fund for simplicity and to discourage tinkering.

worldwideox

  • 5 O'Clock Shadow
  • *
  • Posts: 4
Re: What should I invest in my solo 401k?
« Reply #2 on: October 16, 2019, 10:09:46 AM »
Thanks! This is helpful.