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Learning, Sharing, and Teaching => Investor Alley => Topic started by: lilstubbletgvp on March 18, 2015, 10:43:49 AM

Title: 401k Question
Post by: lilstubbletgvp on March 18, 2015, 10:43:49 AM
My companies 401k is switching some of the funds. Currently i hold DFIVX for my international stock exposure. It has an expense ration of .43.  They are removing that fund as an option and are replacing it with  VTMGX and VEMAX. Which of those two should i transfer my shares over to when the time comes?
Title: Re: 401k Question
Post by: skyrefuge on March 18, 2015, 10:54:04 AM
DFIVX invests in "developed markets" (essentially the opposite of "emerging markets").
VTMGX invests in developed markets.
VEMAX invests in emerging markets.

So if you want to keep your portfolio as similar as it was before, you should transfer DFIVX money to VTMGX.

But if you're asking this question, it suggests that your previous portfolio might have been created without full knowledge of what you were investing in. If that's true, then there might not be a ton of value in simply attempting to copy what you had before. You should determine what you want your asset allocation to look like, and then select the funds in your new 401(k) that best fit that allocation.
Title: Re: 401k Question
Post by: Metta on March 18, 2015, 05:10:55 PM
Do you have to transfer your existing monies that are in that fund? In cases where funds have been closed to additional investments in my company's 401K I've been able to keep the money I already had invested in those funds in place (along with the expense ratio). I had to choose another fund for future contributions, but my past contributions were allowed to stay put.