Hello,
First I want to say that I think everyone here is pretty remarkable. I got my finance degree in school and not once in four years did I get one lecture about how to use everything we were taught for our own betterment. This blog has really opened my eyes to the possibilities, but clearly I’m not the first person to appreciate that.
As for my situation, I think I’m doing ok, and am obviously learning a lot on here every day but my question today is really about my 401k allocation. I wouldn’t say we have great investment options but they’re fine, I’m wondering what you all would do given these options.
We have the Target Date funds, mine would be target date 2050 at an ER of .43%.
After that you can more specific:
Equity fund - .22%
Blackrock Equity fund (tracks S&P 500) - .05%
International fund - .42%
Bond fund - .20%
Blackrock US Bond fund - .03%
I guess what I’m wondering is at what point do you guys choose the fees over diversification. It seems like the choice is either the Target Date fund or the two Blackrock funds with no international diversification. The Target Date fund would offer me much more diversification because it includes some funds that track the Russell Small/Mid caps (as opposed to just the S&P 500), as well as some REITS, but would come at a much higher fee.
Do you think the best option would be do have a 90-10 split between the Blackrock funds and then use an IRA to buy an international fund?
Given what I’ve read so far on the forums, as I’m writing this I expect most people to suggest the target date fund because it does offer way more diversification, but if I knew for sure I wouldn’t be posting.
Thank you all in advance for sharing your knowledge.