Author Topic: Help with 401(k) investment allocations  (Read 631 times)

Dave1442397

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Help with 401(k) investment allocations
« on: May 16, 2019, 07:07:22 PM »
Hi all,

After reading up on how fees can negatively affect returns, I think it's time to change the allocations in our 401(k)s. This is the first one I'm looking at.

I show the current allocations in the first attachment, and the options with fees <= 0.5% in the second attachment. Let's assume age 55 with 12 years left in the workforce.

The current fees are:
FSNQX 0.61%
NRGSX 0.75%
VSMAX 0.05%
VEIRX 0.18%

I'm not too happy with FSNQX and NRGSX.

What would you suggest for a new allocation? I tend to go for more rather than less risk, but we're not talking Las Vegas risk, either.



Plugra

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Re: Help with 401(k) investment allocations
« Reply #1 on: May 16, 2019, 07:55:23 PM »
As I see it the issue is not so much the fees, which are tolerable (<1%), but rather that NRGSX is actively managed which I would avoid ... and also that FSNQX is a target fund, which gives you slightly less flexibility than if you allocated the funds yourself.  So you'll probably do fine with these but you are paying for some things you don't need.

It would simpler and slightly cheaper if you had access to a couple of simple, broad index funds to cover stock and bond market respectively.  Can you get the Vanguard total stock and total bond market index?

Dave1442397

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Re: Help with 401(k) investment allocations
« Reply #2 on: May 17, 2019, 04:39:33 AM »
Can you get the Vanguard total stock and total bond market index?

I have access to Fidelity total stock, and yes, the Vanguard total bond market index.

jinga nation

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Re: Help with 401(k) investment allocations
« Reply #3 on: May 17, 2019, 05:58:11 AM »
Can you get the Vanguard total stock and total bond market index?

I have access to Fidelity total stock, and yes, the Vanguard total bond market index.

stock: fidelity total market index fund
bond: Vanguard total bond market index

these two have the lowest ratios.

decide on your allocation split per your risk level. see: https://www.bogleheads.org/wiki/Asset_allocation#Rules_of_thumb