Author Topic: 401K core funds or SDA? Very much appreciate any advice!  (Read 1491 times)


  • 5 O'Clock Shadow
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401K core funds or SDA? Very much appreciate any advice!
« on: March 26, 2017, 01:09:09 PM »
Hi everyone, I am trying to form sounds strategy for my retirement saving and would very much appreciate any advice/thoughts on a few things ...

1. Any thoughts on how to determine whether it is worth for me to opt for an SDA within my employer's 401K so that I can get access to better fund line up (with lower ER)?

2. Is it better to consider asset allocation in all my retirement accounts combined as opposed look at each account individually?

3. Of my 3 retirement accounts one has pre-tax contributions (401K) and the other two I contribute from my after-tax pay check. Should I take this in considerations in deciding for assets I pick within each of these accounts? If so, how?

I am not very experienced investor and am thinking there might be things to consider related to SDA that I am not aware of ... mostly I want to keep things simple. I also opened Roth IRA and brokerage at Vanguard ... researching this on internet lead me to an idea of  looking at all my three accounts combined as opposed to individually but am still not sure if that is the right thing to do.

My retirement savings:
57% is in my employer's 401K (managed by Wells Fargo) - right now invested in T. Rowe 2050 target date fund
15% is in my Roth IRA (at Vanguard) - right now invested in Vanguard 2050 target date fund
28%  is in my Brokerage (at Vanguard) - right now in money market account trying to decide how to invest

Target Asset Allocation: between 90/10, 80/20 or 70/30 (undecided yet)
My savings goal: saving for retirement, planning on long-term holding of selected index funds
Me: 32 and debt free

Incremental fees in case I opt for SDA: $12.50/quarter plus $20/distribution

Funds core offerings within my employers 401K plan:
The SARP Stable Value Fund (0.48%)
Metropolitan West Total Return Bond I Intermediate-Term Bond (0.44%) - MWTIX
T. Rowe Price Retirement 2005 (0.60%) - TRRFX
T. Rowe Price Retirement 2010 (0.59%) - TRRAX
T. Rowe Price Retirement 2015 (0.62%) - TRRGX
T. Rowe Price Retirement 2020 (0.66%) - TRRBX
T. Rowe Price Retirement 2025 (0.69%) - TRRHX
T. Rowe Price Retirement 2030 (0.72%) - TRRCX
T. Rowe Price Retirement 2035 (0.74%) - TRRJX
T. Rowe Price Retirement 2040 (0.76%) - TRRDX
T. Rowe Price Retirement 2045 (0.76%) - TRRKX
T. Rowe Price Retirement 2050 (0.76%) - TRRMX
T. Rowe Price Retirement 2055 (0.76%) - TRRNX
T. Rowe Price Retirement 2060 (0.76%) - TRRLX
Dodge & Cox Stock Large Value (0.52%) - DODGX
Vanguard Institutional Index I Large Blend (0.04%) - VINIX
PRIMECAP Odyssey Growth (0.66%) - POGRX
RidgeWorth Ceredex Mid-Cap Value Equity I Mid-Cap Value (1.12%) - SMVTX
Hartford MidCap HLS IA Mid-Cap Growth (0.70%) - HIMCX
RidgeWorth Ceredex Small Cap Value Equity I Small Blend (1.21%) - SCETX
Prudential Jennison Small Company Z Small Growth (0.84%) - PSCZX
Artisan International Fund Investor Foreign Large Growth (1.19%) - ARTIX


  • Handlebar Stache
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Re: 401K core funds or SDA? Very much appreciate any advice!
« Reply #1 on: March 27, 2017, 07:45:18 AM »
Put it all in VINIX, balance you allocation with the other accounts.

Proud Foot

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Re: 401K core funds or SDA? Very much appreciate any advice!
« Reply #2 on: March 30, 2017, 09:40:17 AM »
Second on the VINIX.  If that fund wasn't an option then I would look at the SDA. Very hard to beat the 0.04% ER of VINIX with the ER of your investment choice plus the SDA fees.  VTSAX plus the SDA fees easily beats out the other 401k fund options.

Look at your asset allocation across your combined portfolio and then use the Roth IRA and Taxable account to balance out your allocation.  Are you able to contribute to a traditional IRA?