Author Topic: Reallocating 401k distribution  (Read 932 times)

prognastat

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Reallocating 401k distribution
« on: April 09, 2016, 10:28:34 AM »
I have a company 401k and they offer a built in rob advisor to help allocate based on the amount of risk you are comfortable with.

I have it set to 90/10 ratio.

However I after looking at the individual plans it is putting me I noticed most are Vanguard plans that seem to be performing well and seem to have very low fees. However there is also one Fidelity large cap fund that seems to be performing similar(lower compared to one of them even) to the 2 vanguard large cap funds included, however the fee % seems to be about 4x higher for it. I also noticed a Dodge & Cox international fund that seems to be in a similar position compared to the vanguard one it also has some allocated too and also is charging quite a bit more in fees.

Now my question is would manually reallocating those two funds to the vanguard ones of the same asset class be too much of a risk due to less diversity in my portfolio or would it be smart to reduce the fees and worth this added risk?

forummm

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Re: Reallocating 401k distribution
« Reply #1 on: April 09, 2016, 10:57:12 AM »
If you are just shifting them to the comparable Vanguard fund, then your risk and diversity stay the same. VG and Fdty have some funds that track very similar indexes. If you switch to the lower cost provider of a very similar index, then you're saving and not affecting risk.

prognastat

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Re: Reallocating 401k distribution
« Reply #2 on: April 09, 2016, 11:03:24 AM »
Ok, I figure it might be helpful to provide a little more information.

The current allocations and funds are:
Large Cap
10% Vanguard Windsor II Fund - Admiral
24% Vanguard Employee Benefit Index-Client A
7% Fidelity Contrafund
International Fund
26% Vanguard Total Intl Stock Idx InstlPls
10% Dodge & Cox International Stock

I was thinking about folding the fidelity contrafund in to the two Vanguard large cap funds and doing to same for the dodge & cox international one to the vanguard one.

forummm

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Re: Reallocating 401k distribution
« Reply #3 on: April 09, 2016, 12:25:35 PM »
Yeah, I would make those moves.