It's taken me a while to get back to this. I appreciate the feedback, and pointing out me that my thought process was way off the expense ratio in her 401k.
I've looked at the options spread out over her 401k, my 457 and 401k, and both of our vanguard Roth IRAs. I'd like to target 10% of total in bonds and 90% in stocks for now.
If I were to put all of her 401k into the vanguard small cap fund, we'd be right around
-40% of total in small cap
- 29% large cap
-14% mid cap
-13% world stock market
- 4% bonds.
*Approximately 1% in American funds Euro Pacific Growth Fund
I am considering rearranging all of our accounts so that everything is in index funds. It would put us at the following:
-39% of total in small cap
-43% large cap
-14% mid cap
-0% world stock market
- 4% bonds
My concern is that the bond allocation is lower than I'd prefer, but with being young, the only way we'll need these funds sooner than 25-30 years from now is if we decided to retire early(sure would be nice, but it's not a necessity). Does this type of allocation seem unreasonable to start with, and rebalance occasionally to try getting more toward the 90/10 target? Also, we'll be contributing more to my 401k and 457 than her 401k because of IRS rules, so eventually our small cap stock allocation will get a little lower, and with occasional rebalancing of my accounts, the large cap, mid cap and bond allocations can increase.
Another option that could bring us closer to the 90/10 allocation would be switching Roth IRA funds into a bond index instead of total stock market index. We do not contribute to these accounts anymore, and plan to start t IRAs in the near future. I'm just not sure if a Roth account is the best investment vehicle for bonds. Any thoughts or opinions on doing that would be appreciated.
Hopefully this isn't just a bunch of rambling, I'm pretty new to investing, and trying to build a better knowledge base on it. Up until now we focused mainly on paying of student loans, and blindly saving for retirement with the extra (luckily we haven't followed that path for too many years).