Author Topic: help me pick my 401k funds  (Read 894 times)

frugalnacho

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help me pick my 401k funds
« on: September 23, 2017, 02:04:56 PM »
new 401k plan at work and I need to pick my funds.  Our IPS is 100% stocks, 60/40 VTSAX/VTIAX, or if those funds aren't available, the closest I can replicate them.

Fund options with reasonable ER:

FUSVX - fidelity 500 index fund - 0.05%
FSEVX - fidelity extended market index fund - 0.07%
FSIVX - fidelity international index fund - 0.08%
FSSVX - fidelity small cap index fund - 0.07%

My 401k plan has automatic re-balancing so I could go 60/40 in my 401k for simplicity, and then only have to rebalance our IRAs and taxable accounts to 60/40.  However we currently have about $240k invested with vanguard, so I can go 100% domestic, or 100% international in my 401k and still maintain my desired AA, probably until FIRE.

How would I best replicate VTSAX or VTIAX? 



etselec

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Re: help me pick my 401k funds
« Reply #1 on: September 24, 2017, 08:59:15 PM »
80% FUSVX and 20% FSEVX should approximate VTSAX fairly well. International is harder FSIVX doesn't have Canada or emerging markets, so it doesn't approximate VTIAX quite as well. 

If it works with your overall mix of assets, I'd say:
  • New 401k: all domestic (use auto rebalancing to keep your 80/20 ratio of FUSVX/FSEVX)
  • IRAs: mix of domestic & international as needed for your AA
  • Taxable: all international (or as much as possible obviously stick to your overall AA, and keep any existing domestic here if selling it would trigger a ton of taxes)

Having more international in taxable means you'll get more foreign tax credit. Not a huge deal, but a nice bonus if you can swing it.