The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: texxan1 on January 26, 2018, 11:05:35 AM
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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
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Can you post a list of available funds with expense ratios? Often there is a low cost total stock market index available.
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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.
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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%
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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?
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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.
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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.