Author Topic: Guidance questions for 401k changes that are immenent  (Read 1522 times)

texxan1

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Guidance questions for 401k changes that are immenent
« on: January 26, 2018, 11:05:35 AM »
Just got notification from Fidelity that the company is doing away with access to the Russel 2000 Index fund. I currently have 45% of my 401k in that fund and this along with other changes, I have access to mostly crap target date funds. However, in browsing I did look at the Equity index growth fund and it has the best performance and a cost ratio of .03  .... So im thinking to move all of my money in the Russell  over to there but I get so confused on some of it.. Just looking for a little input

Just for reference sake, im 4 years away from FIRE at 50.. with about 800k in 401k, 650 in vanguard , and a few pensions worth about 500k... I want to maximize my input and will be able to put a little over 200k a year into vanguard and 50k into 401ks

Cheers

Tex


RWD

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Re: Guidance questions for 401k changes that are immenent
« Reply #1 on: January 26, 2018, 11:41:55 AM »
Can you post a list of available funds with expense ratios? Often there is a low cost total stock market index available.

Heroes821

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Re: Guidance questions for 401k changes that are immenent
« Reply #2 on: January 29, 2018, 09:56:52 AM »
I think RWD is right, a list of all funds with expense would be best, but if you are 4 years from FIRE what are your plans?  If you are going to leave the job that holds this 401k then you will be able to roll it over into an IRA at vanguard and pick your usual funds.  4 years is not a very long time for that, in which case a target date fund that is 4 or 5 years away from now would probably be a nice way to keep that account where it is before you can move it vanguard.

texxan1

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Re: Guidance questions for 401k changes that are immenent
« Reply #3 on: January 31, 2018, 11:12:49 AM »
Here are the funds available for my options... The target dates are all .07 Fees....

I already hold varying percentages of S&P 500 index, INTL Equity Index, Equity index Value, and some various stocks... The Russell 2000 Index holds the bulk (46%) but we will be forced out of that by march 28th.

Any thoughts would be greatly appreciated

As for my plans, I will be able to FIRE in 4 years, does not mean I will do it but want to be ready to take the plunge.

TARGET DATE 2020 
01/31/2008
 Blended Fund Investments* 0.07%  No additional fees apply. 
 TARGET DATE 2025 
01/31/2008
 Blended Fund Investments* 0.07%  No additional fees apply. 
 TARGET DATE 2030 
01/31/2008
 Blended Fund Investments* 0.07%  No additional fees apply. 
 TARGET DATE 2035 
01/31/2008
 Blended Fund Investments* 0.07%  No additional fees apply. 
 TARGET DATE 2040 
01/31/2008
 Blended Fund Investments* 0.07%  No additional fees apply. 
 TARGET DATE 2045 
01/31/2008
 Blended Fund Investments* 0.07%  No additional fees apply. 
 TARGET DATE 2050 
01/31/2008
 Blended Fund Investments* 0.07%  No additional fees apply. 
 TARGET DATE 2055 
12/31/2010
 Blended Fund Investments* 0.07%  No additional fees apply. 
 TARGET DATE 2060 
01/01/2015
 Blended Fund Investments* 0.07%  No additional fees apply. 
 TARGET DATE RET 
01/31/2008
 Blended Fund Investments* 0.07%  No additional fees apply. 
 TIER 2 CORE INDEXED FUNDS    - show details. - hide details.   
 

EQUITY INDEX GROWTH  04/01/2000  Stock Investments 0.03%  No additional fees apply. 
 S&P 500 INDEX   Stock Investments 0.01%  No additional fees apply.
  S/M CAP EQUITY INDEX  07/01/2017  Stock Investments 0.03%  No additional fees apply. 


Investments you currently own 

 EMERGING MRKTS INDX  09/30/2009  Stock Investments 0.15%  No additional fees apply. 

 INTL EQUITY INDEX  07/01/1998  Stock Investments 0.0795%  No additional fees apply. 

 REAL ASSETS INDEX  07/01/2017  Stock Investments 0.18%  No additional fees apply. 
INCOME  06/01/1987  Bond/Managed Income 0.3915%  No additional fees apply. 

 US FIXED INCOME  01/01/2009  Bond/Managed Income 0.038%  No additional fees apply.
 US FXINC SHORT DUR  01/01/2009  Bond/Managed Income 0.024%  No additional fees apply. 
 WORLD GOVT BOND INDX  09/30/2009  Bond/Managed Income 0.143%  No additional fees apply. 
 US TIPS BOND INDX  09/30/2009  Bond/Managed Income 0.039%  No additional fees apply. 
 SHORT TERM INVT FUND  10/01/1991  Short-Term Investments 0.107% 

Xlar

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Re: Guidance questions for 401k changes that are immenent
« Reply #4 on: January 31, 2018, 02:11:58 PM »
Here are the funds available for my options... The target dates are all .07 Fees....

I already hold varying percentages of S&P 500 index, INTL Equity Index, Equity index Value, and some various stocks... The Russell 2000 Index holds the bulk (46%) but we will be forced out of that by march 28th.


Why do you want to hold Russell 2000 instead of S&P 500/Total Stock Market Indexes?

Radagast

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Re: Guidance questions for 401k changes that are immenent
« Reply #5 on: January 31, 2018, 11:40:57 PM »
S/M CAP EQUITY INDEX is the obvious choice to replace a Russel 2000 fund because they are basically the same thing. I'm guessing they are switching from Russel 2000 to this to avoid paying for use of the "Russel 2000" name ie. it is a move to lower expenses.

Acastus

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Re: Guidance questions for 401k changes that are immenent
« Reply #6 on: February 01, 2018, 02:16:55 PM »
I am with Radagast. The small cap is the closest match to Russell 2000. They are basically the same asset class - small cap stocks. 45% is a lot to be putting in small cap, IMHO. At 4 years from FIRE, it might be time to dip a toe into, ugh, fixed income.

Equity income is large cap, high dividend. That is a general stand in for large cap value.