The Money Mustache Community

Learning, Sharing, and Teaching => Investor Alley => Topic started by: erjkism on December 18, 2015, 10:04:31 PM

Title: 403(b) bond fund options????
Post by: erjkism on December 18, 2015, 10:04:31 PM
Hi everyone, I'm trying to figure out which bond funds I should buy in my 403(b).  At the moment, I am 100% stocks with about 25k in my 403(b) and 35k in a taxable vanguard account (mix of VTSAX and VTIAX) and the rest of my net worth is cash/car (I don't have a house or real estate).  I feel like i need bonds, and from what I've researched, I should probably put them in my 403(b) vs taxable account. I would like to keep things fairly simple if possible. I have a financial adviser provided through my workplace, but I don't trust her because she originally signed me up for high ER stock funds without me understanding what was going on! Any advice would be appreciated! Here are the non-stock funds that are offered:

VBLTX (vanguard long-term bond index, ER 0.2%)
This index includes all medium and larger issues of U.S. government, investment-grade corporate, and investment-grade international dollar-denominated bonds that have maturities of greater than 10 years and are publicly issued.

VIPIX (vanguard inflation-protected securities fund, ER 0.07%)
The fund invests at least 80% of its assets in inflation-indexed bonds issued by the U.S. government, its agencies and instrumentalities, and corporations. It may invest in bonds of any maturity; however, its dollar-weighted average maturity is expected to be in the range of 7 to 20 years

FXNAX (Spartan® U.S. Bond Index Fund - Fidelity Advantage Institutional Class, ER 0.05%)
Normally investing at least 80% of the fund's assets in bonds included in the Barclays U.S. Aggregate Bond Index.

MWTIX (Metropolitan West Total Return Bond Fund Class Institutional, ER 0.44%)
The fund pursues its objective by investing, under normal circumstances, at least 80% of its net assets in investment grade fixed income securities or unrated securities that are determined by the Adviser to be of similar quality. Up to 20% of the fund's net assets may be invested in securities rated below investment grade.

RCWEX (American Funds Capital World Bond Fund® Class R-4, ER 0.88%)
The fund will invest at least 80% of its assets in bonds and other debt securities. It invests primarily in debt securities, including asset-backed and mortgage-backed securities and securities of governmental, supranational and corporate issuers denominated in various currencies, including U.S. dollars. The fund may invest substantially in securities of issuers domiciled outside the United States, including issuers domiciled in developing countries. Normally, it will invest substantially in investment-grade bonds. The fund is non-diversified.

DODIX (Dodge & Cox Income Fund, ER 0.44%)
The fund invests in a diversified portfolio of high-quality bonds and other debt securities. Normally, the fund will invest at least 80% of its total assets in the following categories: debt obligations issued or guaranteed by the U.S. government, its agencies or GSEs; investment-grade debt securities; unrated securities if deemed to be of investment-grade quality by Dodge & Cox; and bankers' acceptances, bank certificates of deposit, repurchase agreements, and commercial paper.

FAGIX (Fidelity® Capital & Income Fund,ER 0.72%)
nvesting in equity and debt securities, including defaulted securities, with an emphasis on lower-quality debt securities. Investing in companies in troubled or uncertain financial condition.

PLDAX (Low Duration Fund Administrative Class, ER 0.71%)
65% of its total assets in a diversified portfolio of Fixed Income Instruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts, or swap agreements. It invests primarily in investment grade debt securities, but may invest up to 10% of its total assets in high yield securities. It may invest up to 30% of its total assets in securities denominated in foreign currencies

TPINX (Templeton Global Bond Fund Class A, ER 0.91%)
80% of its net assets in "bonds." Bonds include debt obligations of any maturity, such as bonds, notes, bills and debentures. It invests predominantly in bonds issued by governments and government agencies located around the world. The fund may invest up to 25% of its total assets in bonds that are rated below investment grade. It is non-diversified.

TIAA Real estate (ER 0.71%)
Seeks favorable long-term returns primarily through rental income and appreciation of real estate investments owned by the account.
Title: Re: 403(b) bond fund options????
Post by: GGNoob on December 18, 2015, 10:13:54 PM
FXNAX would be the best "US total bond market" index fund.