Author Topic: Are these good investment stocks/bonds?  (Read 2114 times)

LVBRN

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Are these good investment stocks/bonds?
« on: November 17, 2016, 11:12:46 AM »
Hi.  I'm a 33 year old that just started a new job with a new 401k. My previous one was managed by Fidelity for me, so I didn't have to do anything with it (has 25k in it that I plan to roll over into an IRA with them- my only other savings account).  This new job has the option of managing yourself, or getting recommendations from "Morningstar"--computer generated I'm  guessing.  I know people on here are much more savvy than myself on these so I was hoping to get some input on what they had me put in.

American Funds Europacific Growth A- 31%
American Funds Washington Mutual a- 9%
Dreyfus Small Cap stock index inv- 14%
Tributary Income Instl plus-7%
Vanguard Short-term Bond index-4%
VanGuard total stock market idx I-35%

Does this seem reasonable for my age?  Thank you for any and all input!

catccc

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Re: Are these good investment stocks/bonds?
« Reply #1 on: November 17, 2016, 12:58:37 PM »
Just providing input for the items I know something about:

American Funds class A shares have a 5.75% front load fee, I think.  Maybe your option doesn't, but you should look into this.  Having 5.75% of your investment taken off the top is pretty crappy.

Vanguard fees have low expense ratios and are no load, AFAIK.  Thumbs up on these.

jjandjab

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Re: Are these good investment stocks/bonds?
« Reply #2 on: November 17, 2016, 01:47:06 PM »
Hey there. Although it might be a bit onerous to list, can you give us all the possible options in your 401k and the expense ratios (ER).

At your age, one of the things that will have the greatest impact on your overall earnings is going to be the expenses these funds change you. And I am willling to bet you are overpaying for the first four on your list.

If you had only these six to choose from I would put 90% into Vanguard total stock and 10% into Vanguard short-term bonds. A bit more conservative would be 80/20 or 70/30. See if you have Vanguard Total Bond index in there somewhere which might be a bit better that the short term index only.

I highly recommend going to Bogleheads.org and reading all of the introductory information about index funds and investing.

Good luck!

LVBRN

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Re: Are these good investment stocks/bonds?
« Reply #3 on: November 17, 2016, 02:55:08 PM »
These are what appear to be my options.   I don't know about the "expense ratios" sorry. 

AB Small Cap Growth Adv (QUAYX)  B   
 0%   
 
   American Century Infl-Adj Bond Inv (ACITX)  0%   
 
   American Funds EuroPacific Growth Fund A (AEPGX)  B   
 31%   
 
   American Funds Income Fd Of America A (AMECX)  B   
 0%   
 
   American Funds SMALLCAP World Fund A (SMCWX)  B   
 0%   
 
   American Funds Washington Mutual Inv A (AWSHX)  B   
 9%   
 
   Dreyfus Small Cap Stock Index Fund (DISSX)  14%   
 
   Dreyfus Strategic Value A (DAGVX)  0%   
 
   JPMorgan Large Cap Growth A (OLGAX)  B   
 0%   
 
   MFS Core Equity R3 (MRGHX)  B   
 0%   
 
   MFS International Diversification R3 (MDIHX)  B   
 0%   
 
   Prudential Global Real Estate A (PURAX)  B   
 0%   
 
   T. Rowe Price Growth Stock Adv (TRSAX)  0%   
 
   T. Rowe Price Mid Cap Value Adv (TAMVX)  0%   
 
   Tributary Growth Opportunities Inst (FOGRX)  0%   
 
   Tributary Income Instl Plus (FOIPX)  7%   
 
   Tributary Small Company Inst (FOSCX)  0%   
 
   Vanguard Federal Money Market Inv (VMFXX)  0%   
 
   Vanguard Short-Term Bond Index Inv (VBISX)  4%   
 
   Vanguard Total Stock Market Index Inst (VITSX)  B  35%

Radagast

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Re: Are these good investment stocks/bonds?
« Reply #4 on: November 17, 2016, 11:05:46 PM »
Default to 100% in Vanguard total stock market. If you are concerned about stock market crashes putting some in Vanguard short term bond index is not a bad idea, though it will not likely improve long term returns and may make them worse. Dreyfus small cap index is not bad, though there is no real reason to add it because of the higher expense ratio. The American funds EuroPacific may be marginally acceptable of you need international, but honestly you will be better off opening an IRA at a company with good international funds (I assume... I think American Funds does have some good funds available but not sure if that one is good).

LVBRN

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Re: Are these good investment stocks/bonds?
« Reply #5 on: December 04, 2016, 01:16:39 PM »
THanks for your replies. I ended up putting 80%    Vanguard Total Stock Market Index Inst (VITSX)  and the other 20% in the vanguard short term bonds.  I appreciate the advice, and I'll try to educate myself further!

Indexer

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Re: Are these good investment stocks/bonds?
« Reply #6 on: December 04, 2016, 01:55:45 PM »
THanks for your replies. I ended up putting 80%    Vanguard Total Stock Market Index Inst (VITSX)  and the other 20% in the vanguard short term bonds.  I appreciate the advice, and I'll try to educate myself further!

Sounds good. I would also diversify into international stocks. The only international funds in your 401k are expensive so I would try to avoid going that route if possible. If you have an IRA or Roth IRA I would try to get some international that way.

LVBRN

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Re: Are these good investment stocks/bonds?
« Reply #7 on: December 04, 2016, 02:24:17 PM »
I'm going to be rolling my old Fidelity 401k (25K in it) into a Fidelity IRA....Do they have good international funds?

Indexer

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Re: Are these good investment stocks/bonds?
« Reply #8 on: December 04, 2016, 06:05:57 PM »
I'm going to be rolling my old Fidelity 401k (25K in it) into a Fidelity IRA....Do they have good international funds?

You can buy Vanguard funds & ETFs in a Fidelity IRA. I personally like VTIAX or the ETF version, VXUS.

letired

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Re: Are these good investment stocks/bonds?
« Reply #9 on: December 04, 2016, 07:38:48 PM »
I'm going to be rolling my old Fidelity 401k (25K in it) into a Fidelity IRA....Do they have good international funds?

You can buy Vanguard funds & ETFs in a Fidelity IRA. I personally like VTIAX or the ETF version, VXUS.

Fidelity also has good index funds with low expense ratios that are competitive with Vanguards offerings and it might be cheaper to purchase the fidelity funds if you are keeping the money in a Fidelity IRA. You could also move the money to Vanguard.