Author Topic: Best 401k investment option  (Read 860 times)

BookValue

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Best 401k investment option
« on: March 11, 2015, 05:03:48 AM »
Hey all, new member here hoping for some opinions on what I should be putting my 401k funds into. Saving 10% of salary here which is up to employer match and putting other savings to traditional IRA's at Vanguard. Below are available funds, I excluded 15 with expenses over .50% I currently am in the target retire 2045 with 0.43% fees, but thinking I should go to the Vanguard 500 because that has the lowest fee and seems to match VTSMX performance fairly closely. Then if I want to add exposure to other sectors I can do so in the IRAs. This a reasonable plan?

American Capital World G&I - R-6   RWIGX   0.45%
American Fundamental Investors - R-6   RFNGX   0.31%
American Funds Target Retire 2010-2055   RFTTX   .36% to .47% (fee varies based on the date)
American Funds EuroPacific Growth - R6   RERGX   0.49%
American Funds Washington Mutual - R-6   RWMGX   0.30%
American Growth Fund Of America - R-6   RGAGX   0.33%
Vanguard 500 Index - Admiral   VFIAX   0.05%

GGNoob

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Re: Best 401k investment option
« Reply #1 on: March 11, 2015, 06:57:12 AM »
thinking I should go to the Vanguard 500 because that has the lowest fee and seems to match VTSMX performance fairly closely. Then if I want to add exposure to other sectors I can do so in the IRAs. This a reasonable plan?

Yes, that is a perfect plan.

About 80% S&P 500 + 20% Extended Market equals US Total Stock Market. So you could add Extended Market, Total International, and any bonds in your Traditional IRA.