Author Topic: 401(k) asset allocation question/how to find fees from investing newbie  (Read 2134 times)

carozy

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I use Personal Capital and the Investment Checkup suggested I add International Stocks to increase diversification in my 401(k).

The Checkup says:
- Based on your profile, the projected growth rate of your portfolio is appropriate, but you could reduce expected risk without sacrificing expected return. Adding International Stocks would increase diversification.
- It is important to consider potential outcomes in both good and bad market scenarios; the Target Allocation could leave you with $1,700 more at retirement in a bad market scenario.
- It might be time to re-balance your portfolio for better long-term results. Compared to this Target Allocation, you are most overweight in US Stocks and most underweight in International Stocks.

This is a 401(k) through my work, so my selections are limited.


Here's what I have in my 401(k):

VINIX - Vanguard Institutional Index (Large Company) = 75%
FSMEX - Fidelity Spartan Extended Market Index (Small/Medium Company) = 10%
VBTIX - Vanguard Total Bond Market Index = 15%

(Those are the only Vanguard or Fidelity offerings in the whole 401(k).)


However, the international choices in my 401(k) are not index funds and I'm trying to figure out the fees.  I have these 2 to international choices:

APHIX - Artisan International Institutional
Summary: http://www.schwab.wallst.com/Prospect/Research/mutualfunds/fees.asp?symbol=APHIX
Prospectus: http://doc.morningstar.com/docdetail.aspx?clientid=schwab&key=84b36f1bf3830e07&cusip=04314H402

DFALX - DFA Large Cap International
Summary: http://www.schwab.wallst.com/Prospect/Research/mutualfunds/fees.asp?symbol=DFALX
Prospectus: http://doc.morningstar.com/docdetail.aspx?clientid=schwab&key=84b36f1bf3830e07&cusip=233203868


Questions

1. What are people's opinions on adding International to my mix?  I am thinking of adding 10% international and making VINIX 65%.

2. I'm having a hard time figuring out the fees for APHIX and DFALX.  Are the fees too high to make it worth it if I should invest in international funds with one of these?

Any explanations about why or why not to include international funds with asset allocations would be helpful.

Any help would be appreciated!

Thanks.

MDM

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2. I'm having a hard time figuring out the fees for APHIX and DFALX.  Are the fees too high to make it worth it if I should invest in international funds with one of these?
The fees within a 401k are not necessarily the same as if you were to invest directly.  Your 401k fund site should have a web page listing the specifics for each investment option - call the administrator if it is not apparent to you.

Cromacster

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There is no reason you need to meet your asset allocation within one vehicle.  If you want to add international, but your 401k options are not the best, you can always add international funds to your Roth IRA, Traditional IRA, or non-tax advantaged accounts.


forummm

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There is no reason you need to meet your asset allocation within one vehicle.  If you want to add international, but your 401k options are not the best, you can always add international funds to your Roth IRA, Traditional IRA, or non-tax advantaged accounts.

Yes. I do this. My work retirement plan is 100% international because that fund has low fees. My Roth is almost 0% international because that provider has low domestic stock fees.

carozy

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Thanks for the advice.  I just got off the phone with Schwab.  He showed me where to find the fees through the Schwab website.  The DFALX is much cheaper than the APHIX, so APHIX is out.  DFALX is not as low as index funds though, so I'm thinking I can invest in international (if I decide to do that) outside of my 401(k) through Vanguard directly.


carozy

  • Bristles
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I just did a search on International stocks for this forum, and a lot of threads came up.  Apparently I'm not the only one with questions about them.  I'll do some reading.