The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: onlyuptome on April 11, 2016, 05:12:37 PM
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Here is what's available to me, and how I have allocated it so far, based on the advice of the plan representative who helped me when I was hired. I'm making the minimum contribution to get the employer match. At the moment, I'm probably 15-20 years from retirement (but working on cutting that down). I understand Vanguard is generally looked favorably upon, and I can't find easily copied information about the fees associated with each of these funds. So should I move everything into my Vanguard options? Am I satisfactorily diversified? Too much? Not enough?
Stability of Principal
697 Voya Fixed Plus Account III 15%
003 Voya Money Market Portfolio - Class I
Bonds
1583 Pioneer Strategic Income Fund - Class Y Shares
2482 Prudential High Yield Fund - Class Z
799 Vanguard® Total Bond Market Index Fund - Institutional 10%
422 Voya Global Bond Portfolio - Initial Class 10%
Asset Allocation
790 Voya Solution 2025 Portfolio - Initial Class
761 Voya Solution 2035 Portfolio - Initial Class
764 Voya Solution 2045 Portfolio - Initial Class
1166 Voya Solution 2055 Portfolio - Initial Class
767 Voya Solution Income Portfolio - Initial Class
Balanced
1257 VY® T. Rowe Price Capital Appreciation Portfolio - Inst
Large Cap Value
1332 Pioneer Equity Income Fund - Class Y Shares 20%
566 Vanguard® Institutional Index Fund - Institutional Shares
Large Cap Growth
2492 Massachusetts Investors Growth Stock Fund - Class R4 20%
Small/Mid/Specialty
9677 AB Small Cap Growth Portfolio - Class Z
6305 American Century Mid Cap Value Fund - R6 Class
1713 Baron Growth Fund - Institutional Shares
1197 Vanguard® Mid-Cap Index Fund - Institutional Shares 15%
1198 Vanguard® Small-Cap Index Fund - Institutional Shares
1771 Victory Sycamore Small Company Opportunity Fund - Class I
682 VY® Clarion Real Estate Portfolio - Institutional Class
Global / International
1960 American Funds Capital World Growth and Income FundSM - R-6 10%
1723 American Funds EuroPacific Growth Fund® - Class R-6
1954 Oppenheimer Developing Markets Fund - Class Y
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Without knowing the expense ratios I would put 100% of your equities into:
566 Vanguard® Institutional Index Fund - Institutional Shares
1197 Vanguard® Mid-Cap Index Fund - Institutional Shares
1198 Vanguard® Small-Cap Index Fund - Institutional Shares
You can pick the percentage allocations in each. 100% in 566 would be OK. 80/10/10 or 40/30/30 or whatever is fine too.
For your bonds I would just stick with
799 Vanguard® Total Bond Market Index Fund - Institutional
I sure as hell would get out of the American Funds.
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First step: write an "investment policy statement" that will determine how much of your portfolio should be US stock, international stock, US bonds, international bonds, other assets. Different people have different risk tolerances and your investment policy statement should capture this for your situation.
I see little reason to invest in the non-Vanguard funds given that you have Vanguard Institutional class funds available. The Vanguard Institutional Index Fund is an S&P 500 index fund with a 0.02% expense ratio. You can do a lot worse than to use this fund to meet 100% of your domestic stock allocation. To mimic a total stock market index, buy the Vanguard Institutional Index, Mid-Cap Index, and Small-Cap index in an 80/10/10 ratio.
I'd get out of the "Stability of Principal" fund. That's code for cash equivalents, which is not what you want when you're looking for long-term growth.
The Vanguard Total Bond Market fund is fine for your domestic bond allocation.
Given that the international stock funds in your 401(k) are from higher-fee providers, you may wish to buy international funds in your IRA or another account instead of your 401(k).
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Excellent! Thank you so much for the input!