Author Topic: Another 401k Investment Request (Vanguard)  (Read 4522 times)

Isriam

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Another 401k Investment Request (Vanguard)
« on: May 18, 2015, 08:28:07 AM »
I know these are posted a million times but I couldn't find any with my exact funds.  Please let me know where to be based on your opinions. (Vanguard Account)

Today I am in this:

Target 2045 - 25%
Vanguard Institutional VINIX- 25%
Vanguard Total Stock VTSNX - 25%
Vanguard Mid Cap VMCIX- 10%
Vanguard Small Cap VSCIX - 15%


Name                                              Fund/Symbol   Price        Change   Change   SEC  Yield      YTD Returns   1 year   5 year   10 year   inception
SHORT-TERM RESERVES                              
WF Stable Value Fund E                        6201         $50.22    $0.01    0.01%      0.48%                 1.41%   1.88%   3.02%   5.53%
Vanguard Prime Money Mkt Fund   VMMXX0030           $1.00          0.01%C   0.00%                           0.01%   0.03%   1.56%   5.33%
Vanguard Retire Savings Trust II        0338                         2.12%J   0.70% a                            2.08%   2.50%   3.33%   3.71%
                              
BOND FUNDS                              
PIMCO Real Return Instl                    PRRIX2761   $10.95    $0.07    0.64%   -4.89%   2.00% a                      1.76%   3.92%   4.73%   6.57%
Baird Core Plus Bond Inst           BCOIX6347   $11.18    $0.05    0.45%   2.48%   1.58% a                      4.86%   5.45%   5.87%   6.50%
Vanguard Inter-Term Bond Idx Inst   VBIMX0504   $11.55    $0.06    0.52%   2.35%A   1.84%                      5.80%   5.74%              6.12%
                              
BALANCED FUNDS                              
Target Retire 2055 Tr P                        1660   $49.51    $0.11    0.22%      5.90%                                 9.32%         14.93%
Target Retire 2050 Tr P                        1659   $49.53    $0.10    0.20%      5.88%                                 9.36%         13.98%
Target Retire 2045 Tr P                        1658   $49.47    $0.10    0.20%      5.86%                                  9.32%         13.94%
Target Retire 2040 Tr P                        1657   $49.45    $0.10    0.20%      5.84%                                  9.30%         13.92%
Target Retire 2035 Tr P                        1656   $48.50    $0.10    0.21%      5.39%                                 9.01%         13.39%
Target Retire 2060 Tr P                        1695   $29.79    $0.07    0.24%      5.94%                                   9.41%         12.88%
Target Retire 2030 Tr P                        1655   $47.09    $0.11    0.23%      4.99%                                   8.70%         12.54%
Target Retire 2025 Tr P                        1654   $45.64    $0.12    0.26%      4.56%                                  8.38%         11.65%
Target Retire 2020 Tr P                        1653   $44.26    $0.12    0.27%      4.12%                                  8.05%         10.80%
Target Retire 2015 Tr P                        1652   $42.39    $0.11    0.26%      3.57%                                   7.18%         9.57%
Target Retire 2010 Tr P                        1651   $39.94    $0.12    0.30%      2.81%                                   6.16%         7.92%
Vanguard Wellington Fund Admiral    VWENX0521   $69.12    $0.16    0.23%   2.29%B        2.85%              8.29%   10.80%   8.41%   7.66%
Target Retire Income Tr P                1661   $37.88    $0.11    0.29%      2.43%                                   5.65%         6.43%
                              
DOMESTIC STOCK FUNDS                              
Invesco Comstock R6                          ICSFX6221   $26.16    ($0.01)   -0.04%   1.73%   2.51% a                     9.46%         18.23%
Artisan Mid Cap Value Institutional          APHQX3698   $25.60    ($0.04)   -0.16%      2.76% a                             4.18%         13.22%
Harbor Capital Appreciation Instl          HACAX2336   $63.73    $0.06    0.09%      6.87% a                   20.46%   15.23%   10.15%   11.59%
Vanguard Mid-Cap Index Fund Inst           VMCIX0864   $35.70    $0.05    0.14%   1.31%B   5.67%            15.40%   15.19%   10.36%   10.31%
Goldman Sachs Small Cap Value Instl   GSSIX2465   $57.10    ($0.07)   -0.12%      1.38% a                 9.04%   14.10%   10.47%   10.07%
Vanguard Inst Index Fund Inst          VINIX0094   $194.32    $0.17    0.09%   2.02%B   3.87%           12.95%   14.30%   8.32%   9.70%
Hartford Small Company HLS IA          HIASX6195   $24.45    $0.01    0.04%      2.14% a               13.71%   14.70%   11.18%   9.67%
Vanguard Small-Cap Index Fund Inst   VSCIX0857   $58.78    $0.04    0.07%   1.42%B   5.25%        10.53%   14.20%   10.44%   9.06%
BMO Mid-Cap Growth I                         MRMIX6215   $22.28    $0.08    0.36%      4.00% a                    9.65%   13.77%             8.99%
                              
INTERNALTIONAL FUNDS                              
Invesco International Growth R6             IGFRX3737   $35.76    $0.12    0.34%      7.34% a                         5.34%         11.22%
Dodge & Cox International Stock            DODFX2491   $46.11    ($0.01)   -0.02%      7.62% a                  3.54%   8.94%   7.65%   8.90%
Vanguard Tot Intl Stock Ix Inst            VTSNX1869   $115.53    $0.35    0.30%      11.45%                          2.63%         6.26%
« Last Edit: May 18, 2015, 09:08:41 AM by Isriam »

dandarc

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Re: Another 401k Investment Request
« Reply #1 on: May 18, 2015, 08:31:07 AM »
What do all these numbers mean?  The format is very confusing.

Isriam

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Re: Another 401k Investment Request
« Reply #2 on: May 18, 2015, 08:33:30 AM »
I can edit it.  They are just the returns over time. 1 year, 5 year and some other junk.  html formatting didnt copy/paste well.

dandarc

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Re: Another 401k Investment Request
« Reply #3 on: May 18, 2015, 08:34:49 AM »
Are the target date funds also vanguard?

Isriam

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Re: Another 401k Investment Request
« Reply #4 on: May 18, 2015, 08:36:17 AM »
Are the target date funds also vanguard?

yes, vanguard target dates.

forummm

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Re: Another 401k Investment Request
« Reply #5 on: May 18, 2015, 08:37:18 AM »
What are your asset allocation goals? When are you planning to retire? How risk adverse are you?

dandarc

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Re: Another 401k Investment Request
« Reply #6 on: May 18, 2015, 08:37:32 AM »
And what are the expense ratios?

Pretty rare that Vanguard funds are bad choice, but complete information helps.  You're also skewed a bit towards small and mid-cap, which is perfectly fine if you're OK with the additional risk.

Isriam

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Re: Another 401k Investment Request
« Reply #7 on: May 18, 2015, 08:41:18 AM »
What are your asset allocation goals? When are you planning to retire? How risk adverse are you?

Glad to see these quick questions.  Let me try to get a fund page that formats correctly for text.  I am targeted 97% stocks 3% bonds right now.  I am 37 and shooting for 20+ years of work before retirement just because thats my first goal.  I have a mortgage, no other debt.  Bills are a little high right now, which I am working on.  My goal is 65 to retire, and I hope to pull that down some based on money i can save/invest now.

Isriam

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Re: Another 401k Investment Request (Vanguard)
« Reply #8 on: May 18, 2015, 09:09:32 AM »
OK, a little better but still hard to read.  Last 4 numbers are 1 year, 5 year, 10 year, and Inception.  I think that is what most are concerned with?

GGNoob

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Re: Another 401k Investment Request (Vanguard)
« Reply #9 on: May 18, 2015, 10:04:53 AM »
Usually if you invest in a Target Retirement Date fund, that's your only investment (unless maybe you wanted to add REITs or tilt to small value). So my suggestion is to invest only in the desired TRD fund or to create your preferred allocation from the following:

Vanguard Inst Index Fund Inst
Vanguard Mid-Cap Index Fund Inst
Vanguard Small-Cap Index Fund Inst
Vanguard Tot Intl Stock Ix Inst
Vanguard Inter-Term Bond Idx Inst

Also remember that if you have other investment accounts, you can look at all of your accounts as one portfolio. See the following links for some good information:

http://www.bogleheads.org/wiki/Three-fund_portfolio
http://www.bogleheads.org/wiki/Principles_of_tax-efficient_fund_placement

GGNoob

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Re: Another 401k Investment Request (Vanguard)
« Reply #10 on: May 18, 2015, 10:06:34 AM »
OK, a little better but still hard to read.  Last 4 numbers are 1 year, 5 year, 10 year, and Inception.  I think that is what most are concerned with?

Past returns do not matter. All we really care about is expense ratios (which you didn't include). But looking at your funds, we all know the Vanguard funds are the cheapest and best option.

GGNoob

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Re: Another 401k Investment Request (Vanguard)
« Reply #11 on: May 18, 2015, 10:15:17 AM »
create your preferred allocation from the following:

Vanguard Inst Index Fund Inst
Vanguard Mid-Cap Index Fund Inst
Vanguard Small-Cap Index Fund Inst
Vanguard Tot Intl Stock Ix Inst
Vanguard Inter-Term Bond Idx Inst

To match the current 90% stock and 10% bond allocation of the Target Retirement 2045 fund but by using lower cost funds, you would choose an allocation like this:

43% Vanguard Inst Index Fund Inst
6% Vanguard Mid-Cap Index Fund Inst
5% Vanguard Small-Cap Index Fund Inst
36% Vanguard Tot Intl Stock Ix Inst
10% Vanguard Inter-Term Bond Idx Inst

*Note: The TRD fund's stock allocation is currently 70% US and 30% international, but will be switching to 60% US and 40% international by the end of the year. I used the 60/40 for the above allocation.

adamwoods137

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Re: Another 401k Investment Request
« Reply #12 on: May 18, 2015, 10:29:58 AM »
Glad to see these quick questions.  Let me try to get a fund page that formats correctly for text.  I am targeted 97% stocks 3% bonds right now.  I am 37 and shooting for 20+ years of work before retirement just because thats my first goal.  I have a mortgage, no other debt.  Bills are a little high right now, which I am working on.  My goal is 65 to retire, and I hope to pull that down some based on money i can save/invest now.

Why are you targeting such a low % of bonds?

Isriam

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Re: Another 401k Investment Request
« Reply #13 on: May 18, 2015, 11:26:57 AM »
Glad to see these quick questions.  Let me try to get a fund page that formats correctly for text.  I am targeted 97% stocks 3% bonds right now.  I am 37 and shooting for 20+ years of work before retirement just because thats my first goal.  I have a mortgage, no other debt.  Bills are a little high right now, which I am working on.  My goal is 65 to retire, and I hope to pull that down some based on money i can save/invest now.

Why are you targeting such a low % of bonds?

Its a new set up, and I only have 50k for now.  Would I need to worry about bonds/stocks if I went 100% into TRD funds?  The issue is my company just rolled from wells fargo to vanguard and now I'm trying to set up my funds.  I want to be diversified, and thats why I didn't put 100% into TRD.  If I do go 100% TRD is that really considered diversification?

Isriam

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Re: Another 401k Investment Request (Vanguard)
« Reply #14 on: May 18, 2015, 11:30:04 AM »
All the TRD are .07%.  Today i chose my allocation based on vanguard funds because they are the lowest fee.  Some in my plan are up to .95%

It sounds like I should really be targeting TRD 2045 through TRD 2055 and call it a day?

GGNoob

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Re: Another 401k Investment Request
« Reply #15 on: May 18, 2015, 11:55:02 AM »
Glad to see these quick questions.  Let me try to get a fund page that formats correctly for text.  I am targeted 97% stocks 3% bonds right now.  I am 37 and shooting for 20+ years of work before retirement just because thats my first goal.  I have a mortgage, no other debt.  Bills are a little high right now, which I am working on.  My goal is 65 to retire, and I hope to pull that down some based on money i can save/invest now.

Why are you targeting such a low % of bonds?

Its a new set up, and I only have 50k for now.  Would I need to worry about bonds/stocks if I went 100% into TRD funds?  The issue is my company just rolled from wells fargo to vanguard and now I'm trying to set up my funds.  I want to be diversified, and thats why I didn't put 100% into TRD.  If I do go 100% TRD is that really considered diversification?

The TRD funds invest in 4 Vanguard Index Funds:

Total US Stock Market
Total International Stock Market
Total US Bond Market
Total International Bond Market

So yes, that's all the diversification you need. If the expense ratio for the TRD fund is only 0.07%, then you may as well just pick one and call it a day. The 2045 to 2055 are all 90% stock and 10% bond right now and they gradually get more conservative as they get closer to their retirement date. Visit this page to learn more: https://investor.vanguard.com/mutual-funds/target-retirement/#/

Isriam

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Re: Another 401k Investment Request (Vanguard)
« Reply #16 on: May 18, 2015, 12:09:33 PM »
Thanks!  I'm gonna stick with my 2045 then and be done with this.  Very helpful, thanks again.

forummm

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Re: Another 401k Investment Request (Vanguard)
« Reply #17 on: May 18, 2015, 03:29:39 PM »
Thanks!  I'm gonna stick with my 2045 then and be done with this.  Very helpful, thanks again.

Good pick! It's hard to go wrong with the TRD funds. Just shovel as much cash in there as you can--hopefully maxing out ($18k) each year. If you can do that, you should be a millionaire in about 20 years.