Author Topic: 401K Help  (Read 3842 times)

Kjmiller1984

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401K Help
« on: September 15, 2015, 01:01:26 PM »
These are the funds available in my company's 401K. Please help me to pick the best ones to invest in. Below are the funds and my current allocation.

FTCIMA
PTTRX.46
VBILX---------Vanguard Intermediate TermBond Index Admiral-----------10%.1
RCWGX.52
PELBX.9
RITGX.34
DFLVX.27
VFIAX----------Vanguard 500 Index Admiral ---------------- 51%.05
RGAGX.3
FDVLX.73
VIMAX----------Vanguard Mid Cap Index Admiral----------3.4%.09
ATHDX.65
DFSVX.52
VSMAX---------Vanguard Small Cap Index Admiral----------8.6%.09
VSGAX.09
VTMGX---------Vanguard Developed Markets Index Admiral----27%.09
VINEX.4
VEMAX.15
DEMSX.72
VGSLX.12
DFITX.38
VENAX.12

I would like to keep at 90% stocks since I am young-ish and a long ways from FIRE. What do you think the best allocation here would be? Let me know what other info you need.
« Last Edit: September 16, 2015, 07:04:26 AM by Kjmiller1984 »

Jeremy E.

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Re: 401K Help
« Reply #1 on: September 15, 2015, 01:03:07 PM »
These are the funds available in my company's 401K. Please help me to pick the best ones to invest in. Below are the funds and my current allocation.

FTCIMA
PTTRX
VBILX---------Vanguard Intermediate TermBond Index Admiral-----------10%
RCWGX
PELBX
RITGX
DFLVX
VFIAX----------Vanguard 500 Index Admiral ---------------- 51%
RGAGX
FDVLX
VIMAX----------Vanguard Mid Cap Index Admiral----------3.4%
ATHDX
DFSVX
VSMAX---------Vanguard Small Cap Index Admiral----------8.6%
VSGAX
VTMGX---------Vanguard Developed Markets Index Admiral----27%
VINEX
VEMAX
DEMSX
VGSLX
DFITX
VENAX

I would like to keep at 90% stocks since I am young-ish and a long ways from FIRE. What do you think the best allocation here would be? Let me know what other info you need.
If I were you, I would put 100% into VFIAX

johnny847

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Re: 401K Help
« Reply #2 on: September 15, 2015, 01:15:38 PM »
We can't properly help you until you post he expense ratios of the funds .Or at least , the expense ratios of the cheaper funds.

MDM

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Re: 401K Help
« Reply #3 on: September 15, 2015, 03:54:43 PM »
See http://www.bogleheads.org/wiki/Callan_periodic_table_of_investment_returns.  There is no way to tell "which one will be the best?"

What you have now looks reasonable - and so would many other allocations.  How often do you plan to rebalance?

Kjmiller1984

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Re: 401K Help
« Reply #4 on: September 16, 2015, 07:05:30 AM »
I added the expense ratios in red. I guess what i really want to know is what would you put your money in, if you were 31, wanting to be pretty agressive and a ways away from retirement.

johnny847

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Re: 401K Help
« Reply #5 on: September 16, 2015, 07:14:01 AM »
Ok good so they're not charging you an arm and a leg for these funds (sometimes 401k admins tack on additional fees....because they can).

You need to decide your asset allocation for yourself. What you have right now, as MDM says, is reasonable. But you should write an IPS

oriolesmagic

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Re: 401K Help
« Reply #6 on: September 16, 2015, 07:46:59 AM »
It's probably a good idea to look at what Vanguard does in their all-in-one funds. Their default advice for equities:
60% US Total Stock Market
40% Total International Stock Market

You don't have direct access to those funds, but you can approximate them by combining the funds you have.

Roughly 80% VFIAX + 20% VSMAX will approximate the US Stock Market.
Roughly 80% VTGMX + 20% VEMAX will approximate Total International.

So, if you wanted 90/10 stocks/bonds and 60/40 US/International, here's a reasonable allocation:

45% VFIAX
9%  VSMAX
29% VTGMX
7%  VEMAX
10% VBILX

You should check my math, though.

As others have said, there's no optimal portfolio a priori. Instead, there's a fairly broad spectrum of rational portfolios.

More information can be found here:
http://www.bogleheads.org/wiki/Approximating_total_stock_market
http://www.bogleheads.org/wiki/Domestic/International

Edit: I just wanted to point out that as Jack Bogle says "Successful investing involves doing just a few things right and avoiding serious mistakes". So, don't get too hung up on the details

« Last Edit: September 16, 2015, 07:53:46 AM by oriolesmagic »

GGNoob

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Re: 401K Help
« Reply #7 on: September 16, 2015, 08:07:56 AM »
So, if you wanted 90/10 stocks/bonds and 60/40 US/International, here's a reasonable allocation:

45% VFIAX
9%  VSMAX
29% VTGMX
7%  VEMAX
10% VBILX

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