Author Topic: 401k Investment Question  (Read 1203 times)

greengardens

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401k Investment Question
« on: July 31, 2016, 07:27:05 PM »
My 401k is currently invested in the company's "Aggressive Growth" fund, which I'm generally happy with. However, the expense ratio is 0.59, which I feel quite high. I looked at the other investment options they offer and the only Vanguard fund they offer is the VFIAX which is weighted to the S&P 500.  I would like to move some of my investment to the lower cost Vanguard fund, but am hesitant to move everything to an S&P 500 only fund. I've looked at the other funds that my plan makes available, but not many of them have an expense ratio lower than the one I'm currently in. Any advice for an investment newbie? I'm in the process of reading jlcollins stock series.

tralfamadorian

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Re: 401k Investment Question
« Reply #1 on: July 31, 2016, 07:40:40 PM »
If I was in your shoes, I would invest all my 401k in the VFIAX then diversify into other low fee funds in my IRA and taxable accounts that combined would give the asset allocation I was looking for. 

Rocket

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Re: 401k Investment Question
« Reply #2 on: July 31, 2016, 07:42:01 PM »
I put my 401k in the vanguard S&P 500 index (.04) a long long time ago.  No regrets..

Telecaster

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Re: 401k Investment Question
« Reply #3 on: July 31, 2016, 08:09:50 PM »
VFIAX is perfectly fine if that's all they offer.  Around here, people seem to recommend (for logical reasons) VTSAX which is the total market index.   But the two actually track pretty closely.  So if VFIAX is all the have as far as low cost options, go for it and don't worry.  You can still diversify outside your 401k if you like.