Help with 401k

[MoneyGoal]

Hi,

Currently i invest everything in target fund where the gross expense ratio is about 0.41%.

Are there better options? Attached is the screenshot with the gross expense ratio. I am hoping to have VSTAX, but it is not available.

Thanks.

[FIRE@50]

VINIX = S&P 500

[nereo]

It depends on what you want to invest IN. A target fund is a perfectly fine investment, and while the expense ratio is high compared to Vanguard, 0.41% is still reasonable.

A cheaper alternative would be to hold VBTIX (total bond fund) in conjunction with VINIX (sp500) in whatever ratio makes sense for you (e.g. 80/20 VINIX to VBTIX is reasonable in the accumulation phase).

[MoneyGoal]

Thanks. For 401k contribution, there are options

• Base Pay Pre Tax 401k
• Variable Pay Pre Tax 401k
• Base Pay ROTH 401k
• Variable Pay ROTH 401k
• After Tax

What is base pay vs. variable pay?  And what is "After Tax"?
Thanks.

[MDM]

I am hoping to have VSTAX, but it is not available.

You could do 82% VINIX and 18% VIEIX, per Approximating total stock market - Bogleheads.

What is base pay vs. variable pay?  And what is "After Tax"?

Base pay is the minimum you get each paycheck.  Variable pay is what you might get, depending on various things, e.g., overtime, bonuses, etc.

See After-tax 401(k) - Bogleheads for more on that.

[MustacheAndaHalf]

Just as an example without small caps, you might go with:

60% VINIX (S&P 500, 0.035%)
30% VTSNX (int'l, 0.08%)
10% VBTIX (bond, 0.04%)

That gives you an expense ratio of (.6 x VINIX + .3 x VTSNX + .1 x VBTIX) = 0.049%
Slightly better is splitting U.S. into S&P 500 and mid/small cap by replacing about 1/5th of VINIX with VIEIX (mid/small cap).