Author Topic: Wells Fargo based 401k enrollment  (Read 1437 times)

kimmarg

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Wells Fargo based 401k enrollment
« on: March 18, 2018, 06:57:35 PM »
Well we signed up my spouse for a 401k online tonight! This is the first time he has had a 401k so starting from zero. (After 5 years of going back to school, and 90 days waiting period after employment) The election amount was easy - set to max the $18,500 IRS limit (or as close as we could as they only allow percentages). What to invest in? yikes no wonder people get all confused!  I'm a federal employee so my TSP only has a few options and all very low cost. (I'm in L2040 and have been all along).  I had wanted to do the Vanguard total stock index that gets talked about here all the time, but that wasn't an option. We choose a 50/50 split of the following:

VIRSX Vanguard Instl targt Retirement 2040 Fund  (52% in Vanguard total stock index, 35% vanguard total international stock index, 9% vanguard total bond index, 4% Vanguard total international bond index) Cost of $0.90/$1000

WF/Blackrock S&P 500 index CIT N Cost, $0.30/$1000

The other options can basically be summarized as Vanguard target date funds with different dates but the same cost, or stuff with at least double if not quadrulple the cost (one option is $7.20/$1000!) So whaddya think? Did we do ok? Should we go for lowest cost and ignore everything else? I HATE Wells Fargo (banked with them in the past) but that's the option so we gotta take it. And I assume even they can't mess up an S&P index fund.  I will say my 401k investment strategy of "early and often" has worked well and we want something that is set it and forget it. My spouse reviews money decisions like this with me but I'm the one with the knowledge and he mostly says "sure, sounds good".

 

Wow, a phone plan for fifteen bucks!