Recently I have been looking into my 401k and trying optimize and make the best decisions. I have been contributing to my company’s 401k since I started there 3 years ago. Originally, I just contributed to the default fund in the account, Target Retirement 2050 Trust II (expense ratio = .08).
I recently transferred everything over to Vanguard Institutional Index Fund Institutional Plus Shares (VIIIX), with an expense ratio of .02. VIIIX is an index fund replicating the sp 500 ( don’t know how to include links). My thought process for the change was the .06 in expense ratio savings. Now my concern is about diversification.
-1. Should I add some Vanguard Total International Stock Index Fund Institutional Shares (VTSNX) and Vanguard Total Bond Market Index Fund Institutional Shares (VBTIX). I remember reading somewhere on jlcollins blog that you could do this but in his opinion it was not necessary and being heavily invested in US stocks is okay.
-2 Should I just go back to the target fund and not worry about it? .08 is still insanely cheap.
Any opinions would be greatly appreciated. I’ve just started learning about finances and still feeling a little overwhelmed. Thanks.
