The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: BabyShark on December 29, 2017, 07:38:47 AM
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But every time I look at it, I feel dumb. I think the 500 Index is where I want to be but could somebody help with my distributions and offer some advice? I'm 27 right now.
Below are my options and current distributions. FWIW my firm pays the plan expenses:
500 Index (Vanguard) 27%
American Funds Growth Fund of America Fund 5%
Baird Core Plus Bond Fund 8%
BlackRock Equity Dividend Fund 5%
Equity-Income Fund (Vanguard) 5%
EuroPacific Growth (American) 8%
Janus Henderson Triton Fund 6%
JP Morgan Mid Cap Value Fund 2%
Mid Cap Index (Vanguard) 6%
Oppenheimer Global Fund 2%
Sel Mid Cap Gr (TRP/Frontier) 2%
T. Rowe Price Blue Chip Growth Fund 15%
Invesco Small Cap Value Fund 7%
SF Guaranteed 2%
There are also some American Funds Target Date Retirement Funds that are an option but I've ignored those.
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Do you have more than $250,000?
If not, just dump it all in the Vanguard S&P 500 while you learn about asset allocation.
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Looks like your just taking the shotgun approach, a little bit of everything.
As above, learn about asset allocation and develop a investment policy statement. Also, your company may pay the plan expenses, but you still pay the expense ratio for each fund you own. Would be good to know what those are.
http://jlcollinsnh.com/stock-series/ (http://jlcollinsnh.com/stock-series/)
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I recommend any/all of the funds on your list that contain the word "index".
Probably not any of the rest.
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Looks like your just taking the shotgun approach, a little bit of everything.
As above, learn about asset allocation and develop a investment policy statement. Also, your company may pay the plan expenses, but you still pay the expense ratio for each fund you own. Would be good to know what those are.
http://jlcollinsnh.com/stock-series/ (http://jlcollinsnh.com/stock-series/)
Collins would recommend serious consolidation and simplification. He tends to eliminate high fee funds and focuses on index funds. You’ll probably find the vanguard options are lower cost and at least one is probably an index fund.
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Looks like your just taking the shotgun approach, a little bit of everything.
Also, your company may pay the plan expenses, but you still pay the expense ratio for each fund you own. Would be good to know what those are.
http://jlcollinsnh.com/stock-series/ (http://jlcollinsnh.com/stock-series/)
OP, I'll help you out.
Invesco Small Cap Value Fund. Stock ticker VSCAX: 5.5% front load, 1.1% ER. That's 6.6% of your money right off the top and the fund only equaled the S&P500 in performance this year.
American Funds Growth Fund of America Fund. Stock ticker AGTHX. 5.75% front load, .64% ER.
EuroPacific Growth Fund. Stock ticker AEPGX. 5.75% front load, .85% ER.
A couple of the funds on your list did very well this year and even the last couple years; however, they're all quite expensive and their out-performance probably won't last. The INVESCO and American funds are criminally expensive with most trailing the S&P500 before expenses. This is true of most of their products, even those not on your list. You pay these expenses, not your company.
My advice would be to put it all in your S&P500 index fund until you decide what allocation of bonds you might want - if any.
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I am going to add to the chorus. The S&P 500 fund is probably the best option. If it is VINIX, the expense ratio should only be .035. Having all those funds is just making things more complicated than necessary and robbing you of potential returns.
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The remedy to feeling stupid is to get smart.
Start here
https://www.bogleheads.org/wiki/Getting_started
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The remedy to feeling stupid is to get smart.
Start here
https://www.bogleheads.org/wiki/Getting_started
+1
:)
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Much appreciated everybody :)
I’ll be shifting things around shortly. Not at $250k just yet.
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I own the Vanguard Equity Income fund, and I recommend it to young people. A lot of work is out there justifying a belief in a Value-premium that--over decades--should come out of that. See what you can find by Larry Swedroe.