Author Topic: Quick 401k Analysis  (Read 1220 times)


  • 5 O'Clock Shadow
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Quick 401k Analysis
« on: January 06, 2019, 11:21:25 AM »
So my work has done some major overhaul of the 401k I believe is for the better. They recently upped matching up to 5% and lowered expense ratio's on some of the funds.

I like the 3 fund approach with my Vanguard IRA (80% VTSAX U.S., 10%VBTLX Bond, 10%VTIAX International)

For my 401k I don't have any bond options I like due to the high expense ratio's charged by Principal. (.26%, .41%, .79%)

My current allocation is:
Large Cap S&P 500 Index - 40%
Mid Cap S&P 400 -40%
Small Cap S&P 600 -20%

All 3 funds carry net expense ratio's of .05%

Other options are available but with net expense ratio's of .40% - 1.10%

My main question for posting is how do you think I am aligning myself with my Vanguard exposure. I realize that my bond and international isn't an option but I am worried that my exposure to Small and Mid Cap funds may be a little excessive.
I am 26 so still picking up tid-bits of information so any help is appreciated
« Last Edit: January 06, 2019, 11:27:04 AM by Ankenystache »


  • Pencil Stache
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Re: Quick 401k Analysis
« Reply #1 on: January 06, 2019, 11:30:31 AM »
Cant answer your question as I dont know your age and need/tolerance for risk, but obviously those 3 funds in your IRA are excellent choices, just need to find the right mix. My bond and international allocations are higher than yours, for example.

My question for you is, where did you find an S&P 600 fund for only 0.05% ER? I prefer that index over the one that VGs small cap VSMAX fund uses, plus, VSMAX really isnt small cap per se, and their S&P600 ETF, VIOO, which is really good, carries a 0.15% ER.
« Last Edit: January 06, 2019, 11:32:04 AM by Laserjet3051 »


  • 5 O'Clock Shadow
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Re: Quick 401k Analysis
« Reply #2 on: January 06, 2019, 11:42:36 AM »
Sorry I was in the middle of typing and hit enter so I just updated it. My risk tolerance is high, I don't mind seeing my account lose 20%, I actually chuckle inside a little bit thinking I should buy more. Timeline for retirement is probably 40 years because I like keeping my mind busy, but I would like the option of being financially free before that time.

As for the expense ratio's I know they are low. I just went and checked again for the third time.


  • Bristles
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Re: Quick 401k Analysis
« Reply #3 on: January 06, 2019, 07:23:27 PM »
You are overweight in mid and small cap relative to the total market cap. Fine if thatís your goal. The market is something more like 80/10/10 rough guess. You can enter your holdings into Morningstar and compare with VTSAX using their style box to come up with a more precise match to VTSAX if thatís your goal.