Author Topic: Help me with my 401K  (Read 1199 times)

AM43

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Help me with my 401K
« on: August 01, 2017, 09:59:00 AM »
I've been contributing max amount to my 401k and feel good about it, but expense ratios on my funds have been bothering me for quite some time now. Third column from right is ER on funds I am investing in and most are over 0.6% and one(Artisian Mid Cap) is almost 1%. I do have option to invest in Vanguard Intl Stk and S&P 500 with low ER and currently contribute about 10-15% of portfolio in each fund.
I guess my question is, should I consolidate and not invest in so many funds with high ER or just leave it the way it is.
I know 401K plans notoriously have high ER, but I am trying to do something about it and save as much as possible by not paying high fees associated with these plans.
If some of you could help me pick funds and percentage amount to invest, I would appreciate it.

p.s Not sure how to insert screen shot in this post, but I did attach file that you can open to see my funds.
« Last Edit: August 01, 2017, 10:01:13 AM by AM43 »

kenaces

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Re: Help me with my 401K
« Reply #1 on: August 01, 2017, 10:10:03 AM »
1) Spend an hour or two reading about asset allocation and then choose a simple one that you feel comfortable with.  My 2 cents on that are you many want to consider holding a little in bonds as many people over estimate their true "risk tolerance", and make sure to have decent junk in non-US equities.

2) pick the cheapest index funds/ETFs you can find, as cost is huge factor in long term returns

Also realize owning a bunch of different equity funds like you have doesn't really add diversification as there will always be a HUGE amount of overlap.  That is many of the funds you own will own the same stocks.

seattlecyclone

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Re: Help me with my 401K
« Reply #2 on: August 01, 2017, 11:53:39 AM »
I might suggest starting with a three-fund portfolio: US stocks, US bonds, and international stocks. Decide based on your own personal risk tolerance what you want the percentages for each of these to be. Your 401(k) has great Vanguard funds for the US stock and international stock parts of the portfolio. I see no reason to invest in the other stock funds available. If you have investments elsewhere (such as an IRA), you may wish to stick your bond allocation there.

AM43

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Re: Help me with my 401K
« Reply #3 on: August 01, 2017, 12:28:29 PM »
Thank you all for your input.
The choice is clear.
I am pretty risk tolerant and can go for up to 90% stocks and 10% bonds in my portfolio.