Author Topic: Help with new 401k options please  (Read 2104 times)

LipFoliage303

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Help with new 401k options please
« on: February 06, 2016, 07:44:10 AM »
Hi everyone,

I'm starting a new job in two weeks and would love your advice on which way to go with the 401k. I've pasted the options below. I'm torn between taking the simplified route (target date fund and I'm done with it) or cobbling together a few of the options with low fees at the bottom end of the list. My concern with the target date fund is the relatively high fee (.64). My concern with cobbling together a few with low fees is that I won't actually rebalance each year. I say I will, but I've never done it. My current 401k is in a target date fund but it's with Vanguard so the fee is lower than these target date options. I'm wondering if a third option could be buying the s&p 500 fund only so that I have both a low fee and no rebalancing. Is that reasonable? FWIW when the crash happened several years ago I stayed the course with contributions so I'm ok with an all stock no bond allocation. The target date funds are all 90/10 for me so it's not much of a difference.

I welcome all feedback. Thanks!


Plan Symbol   Investment Option   Expense Ratio
SGOIX   1ST EAGLE OVERSEAS I    0.86%
ACIIX   AM CENT EQ INC INST    0.73%
CEYIX   CALVERT EQUITY I    0.66%
CWVIX   CALVERT INTL EQ I    0.97%
CSRSX   COHEN & STEERS RLTY    0.97%
DNVYX   DAVIS NY VENTURE Y    0.62%
DODFX   DODGE & COX INTL STK    0.64%
FCNKX   FID CONTRAFUND K    0.54%
FFKVX   FID FREEDOM K 2005    0.49%
FFKCX   FID FREEDOM K 2010    0.52%
FKVFX   FID FREEDOM K 2015    0.55%
FFKDX   FID FREEDOM K 2020    0.57%
FKTWX   FID FREEDOM K 2025    0.60%
FFKEX   FID FREEDOM K 2030    0.63%
FFKFX   FID FREEDOM K 2035    0.64%
FFKFX   FID FREEDOM K 2040    1.01%
FFKGX   FID FREEDOM K 2045    0.64%
FFKHX   FID FREEDOM K 2050    0.64%
FDENX   FID FREEDOM K 2055    0.64%
FFKAX   FID FREEDOM K INCOME    0.43%
FSTGX   FID INTM GOVT INCOME    0.45%
FBNDX   FID INVST GR BD    0.45%
FLPKX   FID LOW PRICED STK K    0.69%
FKMCX   FID MID CAP STOCK K    0.64%
JIGFX   JANUS OVERSEAS I    0.54%
MGRIX   MARSICO GROWTH    1.37%
MDISX   MUTUAL GLB DISCVRY Z    0.99%
NBPIX   NB LG CAP VAL INST    0.73%
NBSLX   NB SOCIALLY RESP I    0.68%
OAKBX   OAKMARK EQ & INC I    0.74%
ODMAX   OPPHMR DEV MKTS A    1.30%
JSCOX   PERKINS SMCP VALUE I    0.67%
ORIGX   PIONEER O R SMCPGR A    1.34%
SAMVX   RDGWTH MID CAP VAL A    1.40%
RLPIX   ROYCE LOW PR STK IS   1.08%
FXSIX   SPTN 500 INDEX INST   0.04%
FSEVX   SPTN EXT MKT IDX ADV    0.07%
FSIVX   SPTN INTL INDEX ADV    0.12%
FSITX   SPTN US BOND IDX ADV    0.07%

ender

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Re: Help with new 401k options please
« Reply #1 on: February 06, 2016, 07:52:35 AM »
If you look at your target date funds (especially if you compare them to the Vanguard ones), you're likely to see them mainly comprised of these types:

Quote
FXSIX   SPTN 500 INDEX INST   0.04%
FSEVX   SPTN EXT MKT IDX ADV    0.07%
FSIVX   SPTN INTL INDEX ADV    0.12%
FSITX   SPTN US BOND IDX ADV    0.07%

I think Fidelity throws a lot more into their Freedom Funds but Vanguard's are mixes of:

Quote
Vanguard Total Stock Market Index
Vanguard Total International Stock Index
Vanguard Total Bond Market II Index
Vanguard Total International Bond Index

I would definitely do a mix of the above options into your 401k, matching your overall AA.

GrowingTheGreen

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Re: Help with new 401k options please
« Reply #2 on: February 06, 2016, 07:56:33 AM »
You've already recognized what your best options are, so you're off to a good start. 

If you've got a long enough time horizon that you'd like to stay out of bonds, then that only leaves you three funds:
Quote
FXSIX   SPTN 500 INDEX INST   0.04%
FSEVX   SPTN EXT MKT IDX ADV    0.07%
FSIVX   SPTN INTL INDEX ADV    0.12%

Having to rebalance among three funds, once per year, is not too bad.  I think you should give it a try and see what happens.  Down the road, if you find that you're having difficulty rebalancing, then your idea of going 100% S&P would be fine.

PhysicianOnFIRE

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Re: Help with new 401k options please
« Reply #3 on: February 06, 2016, 08:17:47 AM »
+1 for the Spartan index funds.  I wouldn't consider paying 5 to 10 times as much in fees for a target date fund.

Depending on how your plan is set up, you may not have to do manual rebalancing.  I have a Transamerica plan with Vanguard funds.  I can set my desired ratio of the funds and the frequency of rebalancing.  Transamerica takes care of the rest.

LipFoliage303

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Re: Help with new 401k options please
« Reply #4 on: February 06, 2016, 11:18:13 AM »
Thanks for the feedback. I'll try my hand at the three fund option (no bonds) and hopefully there's no manually rebalancing needed. And if I have to roll up my sleeves once a year to rebalance I can do it. There has to be a "Rebalancing for Dummies" book out there.

Thanks again!