Author Topic: 401k investment choices  (Read 372 times)

August26th

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401k investment choices
« on: October 01, 2019, 03:23:05 PM »
My 401k through my employer is with Fidelity.

Iím currently in a target fund (RGGTX) which is a 2040 target date. Expense ratio is .4%.

Thinking of moving to the Fidelity 500 Index Fund (FXAIX) with an expense ratio of .015%.

Iím still in accumulation phase and will max this out for the foreseeable future.

Any reason not to switch the funds? They seem to be in the same risk category. This holds about 20% of my overall retirement savings.

Thanks in advance.

DadJokes

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Re: 401k investment choices
« Reply #1 on: October 02, 2019, 09:33:17 AM »
I can't think of any reason not to switch.

Target retirement funds tend to get too conservative too quickly for my liking, not to mention the fact that it has a higher expense ratio.

Boofinator

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Re: 401k investment choices
« Reply #2 on: October 02, 2019, 09:36:34 AM »
Switch today if you can. That expense ratio is insanely high for a canned "balanced" portfolio.

If you don't like the new fund's asset allocation, update your asset allocation outside your 401k to get to your desired level. If you are early in your accumulation stage, you might want to be 100% stock anyways.

sisto

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Re: 401k investment choices
« Reply #3 on: October 02, 2019, 09:36:47 AM »
I would switch, I also have Fidelity and that same fund.

August26th

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Re: 401k investment choices
« Reply #4 on: October 02, 2019, 09:41:14 AM »
Thanks all! Much appreciated.