Author Topic: Unlimited match 401k, where to put my money?  (Read 6256 times)

rdall

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Unlimited match 401k, where to put my money?
« on: October 07, 2014, 10:33:50 PM »
First I'm a frugal newbie so I appolgize if this post is in the incorrect place. 

I'm fortunate enough to work at a company with unlimited 401k match, I therefore contribute up to the federal max but have been careless about where it is invested.  I've attached an image of my 31 options and their fees.

Is there any other information needed to help make a decision? I really appreciate any help and look forward to learning how I can make these decision for myself.

Gimesalot

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Re: Unlimited match 401k, where to put my money?
« Reply #1 on: October 07, 2014, 10:56:48 PM »
For my age and risk tolerance, I would do 90% FXSIX and 10% FXSTX.

I just think that all of the other expense ratios make the other investments a bad deal.

BrianT

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Re: Unlimited match 401k, where to put my money?
« Reply #2 on: October 07, 2014, 11:08:06 PM »
Put it all in FXSIX, or at least 90%. Data shows it'll give you the most worry-free return over the long term. Besides, Warren Buffet recommended this strategy.

Will

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Re: Unlimited match 401k, where to put my money?
« Reply #3 on: October 07, 2014, 11:09:26 PM »
Holy crap!  Expense ratios in the TEENS!?!?!?!?!?  Yikes!

Normally this is where I would ask about your age, risk tolerance, your investment plan, etc., but to be honest, I would say just go with FXSIX and forget the rest.

randymarsh

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Re: Unlimited match 401k, where to put my money?
« Reply #4 on: October 07, 2014, 11:57:27 PM »
Holy crap!  Expense ratios in the TEENS!?!?!?!?!?  Yikes!

JP Morgan Chase. That's all you need to know.

mxt0133

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Re: Unlimited match 401k, where to put my money?
« Reply #5 on: October 08, 2014, 01:26:44 AM »
Expense ration in the teens, now I have officially seen everything.  I'm thinking even a hedge fund with 2/20 doesn't run that high.  That doesn't seem right.

I looked up JMBRX and morningstar is listing it has having an expense ratio of .50%.  So I would like to know how they are calculating gross expense ratio.
« Last Edit: October 08, 2014, 01:32:32 AM by mxt0133 »

wtjbatman

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Re: Unlimited match 401k, where to put my money?
« Reply #6 on: October 08, 2014, 05:52:31 AM »
Right, call me naive, but I don't see how an expense ratio of 16%+ is even possible. There has to be some sort of mistake in how the gross expense ratio is being calculated.

Anyway OP, that's awesome about the unlimited match. Definitely take advantage of it. Depending on what you've decided your stock/bond asset allocation should be, put the stock portion in the Spartan S&P 500 Index Fund (FXSIX) and the bond portion in the Spartan U.S. Bond Index Fund (FXSTX).

Good resources:
http://www.bogleheads.org/wiki/Asset_allocation
http://www.bogleheads.org/wiki/Investment_policy_statement
Really anything from the Bogleheads Wiki :)

rdall

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Re: Unlimited match 401k, where to put my money?
« Reply #7 on: October 08, 2014, 09:56:25 AM »
Thanks everyone, its very clear where I should but my money.  Thanks for the links wtjbatman.

Its crazy, I can't understand why people at my work don't want $8750 of FREE money but then I think to my self most people think they can't afford it, sad.

kendallf

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Re: Unlimited match 401k, where to put my money?
« Reply #8 on: October 08, 2014, 12:38:05 PM »
From your last post, are you assuming that your company match counts toward the federal limit, and thus are only contributing $8750?  It does not; you can contribute the full amount ($17.5k) yourself.  The company's matching funds are in addition to that, with the final limit of $52k total.

rdall

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Re: Unlimited match 401k, where to put my money?
« Reply #9 on: October 08, 2014, 01:09:22 PM »
Sorry if I wasn't clear.  I contribute 17,500 of my own money and the match at 50% which is where the $8750 comes from.

GregO

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Re: Unlimited match 401k, where to put my money?
« Reply #10 on: October 08, 2014, 06:15:56 PM »
I'm surprised you haven't gotten any other suggestions for diversifying outside of the S&P 500 (FXSIX).  FXSIX is an index of large companies, but you want some exposure to the whole stock market.  I would suggest also adding in FSCKX and FSSVX for some exposure to mid-size companies and small companies.  If you decide to go 100% stocks, I'd do something like:
65% FXSIX
25% FSCKX
10% FSSVX

dividendman

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Re: Unlimited match 401k, where to put my money?
« Reply #11 on: October 08, 2014, 06:30:07 PM »
Spartan S&P 500 all the way baby! That's what I use in my 401k... we only get a 6k match though :(

skyrefuge

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Re: Unlimited match 401k, where to put my money?
« Reply #12 on: October 08, 2014, 06:32:52 PM »
Holy crap!  Expense ratios in the TEENS!?!?!?!?!?  Yikes!

I'd bet a year of 401(k) contributions that it's just a misprint on the chart. Those look like "1-year returns" to me rather than expense ratios (especially since they're on target-date funds and the number increases as the stock allocation increases, as you'd expect). The 401(k) provider just accidentally pasted the 1-year returns for those JPM funds into the wrong column of their spreadsheet.

Otherwise, yeah, FXSIX and FXSTX in whatever ratio you determine best suits your risk tolerance.

GGNoob

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Re: Unlimited match 401k, where to put my money?
« Reply #13 on: October 08, 2014, 08:08:51 PM »

I'm surprised you haven't gotten any other suggestions for diversifying outside of the S&P 500 (FXSIX).  FXSIX is an index of large companies, but you want some exposure to the whole stock market.  I would suggest also adding in FSCKX and FSSVX for some exposure to mid-size companies and small companies.  If you decide to go 100% stocks, I'd do something like:
65% FXSIX
25% FSCKX
10% FSSVX

I too would add the small and mid cap Spartan funds.


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InsourceEverything

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Re: Unlimited match 401k, where to put my money?
« Reply #14 on: October 08, 2014, 08:38:38 PM »
Sorry if I wasn't clear.  I contribute 17,500 of my own money and the match at 50% which is where the $8750 comes from.

I'm not an expert on this, but is 17,500 the entire contribution limit, or just the pre-tax limit ?

If you contribute additional after tax money  (assuming you can), would your company also match that ?