Author Topic: Investment Fund Choice??  (Read 1134 times)

Anagnorisis

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Investment Fund Choice??
« on: December 19, 2016, 07:34:04 PM »
Hello MMM investors!

I'm looking for input on picking funds for my 401k and HSA.  Both have limited choices.  My current situation is detailed below.  I've consolidated the fund options in a google sheet, shared below.  There is a tab each for 401k and HSA.

https://docs.google.com/spreadsheets/d/1oFQzVQjk5c6aidNp6tYWBnOvkl-X5SNgOTrScl3_wj0/edit?usp=sharing

Account Type     Account Balance     Current Fund     Planned 2017 Contributions     Options
401k5,522VSMAX18,000 + 4,950 Company MatchLinked Above
HSA1,911VSMAX3,400Linked Above
Trad IRA9,475VTSMX5,500World, Oyster
After Tax2,000VTSMX - Once I hit 3K     18,000World, Oyster

I'm 36, owe 125K on my mortgage at 3% and am trying to build wealth.  This is a case of me not knowing what I don't know.  My questions are twofold...

1) You might be able to tell that I'm following both JL Collins advice, and that of the investment order discussed on this site.  That in mind, I don't know much about fund balancing and index funds tied to the whole market aren't available for the HSA or 401K.  I chose VSMAX for both as it seemed the closest in spirit.  That being said, I don't know if there is any issue with loading up on small cap, or if they are generally good funds for what I'm looking to do.  So, given my options, would you recommend any changes?  Why?  Why not?

2) Are there any recommended resources which I might pursue to learn more about this so that I can learn for myself?

As always, thanks for any time and advice.  It's most appreciated!

Radagast

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Re: Investment Fund Choice??
« Reply #1 on: December 19, 2016, 08:02:01 PM »
Hello MMM investors!

I'm looking for input on picking funds for my 401k and HSA.  Both have limited choices.  My current situation is detailed below.  I've consolidated the fund options in a google sheet, shared below.  There is a tab each for 401k and HSA.

https://docs.google.com/spreadsheets/d/1oFQzVQjk5c6aidNp6tYWBnOvkl-X5SNgOTrScl3_wj0/edit?usp=sharing

Account Type     Account Balance     Current Fund     Planned 2017 Contributions     Options
401k5,522VSMAX18,000 + 4,950 Company MatchLinked Above
HSA1,911VSMAX3,400Linked Above
Trad IRA9,475VTSMX5,500World, Oyster
After Tax2,000VTSMX - Once I hit 3K     18,000World, Oyster

I'm 36, owe 125K on my mortgage at 3% and am trying to build wealth.  This is a case of me not knowing what I don't know.  My questions are twofold...

1) You might be able to tell that I'm following both JL Collins advice, and that of the investment order discussed on this site.  That in mind, I don't know much about fund balancing and index funds tied to the whole market aren't available for the HSA or 401K.  I chose VSMAX for both as it seemed the closest in spirit.  That being said, I don't know if there is any issue with loading up on small cap, or if they are generally good funds for what I'm looking to do.  So, given my options, would you recommend any changes?  Why?  Why not?

2) Are there any recommended resources which I might pursue to learn more about this so that I can learn for myself?

As always, thanks for any time and advice.  It's most appreciated!
I support 100% VSMAX in the 401K. It is the cheapest fund there which tends to indicate the best returns. Many people would argue that small company stocks will have the best returns anyhow especially for young investors just getting started. XCT is an S&P500 fund which is also perfectly acceptable and low cost.

You have several good options in the HSA. Any of the six Vanguard funds with the lowest expense ratios would be good investments. In fact you have a pretty decent tool kit there. VSMAX is fine, VFIAX is the S&P500 fund which is also a great investment. You might benefit from adding either international developed-market country stocks or international emerging market country stocks as well. The balanced funds would also be good if you may use this account for health expenses. So there are many options here and you will have to choose for yourself, but just choose one and stick with it through thick and thin.

Eventually you should start to own foreign stocks as well for extra stability. However, there is no hurry for now.

Resources:
Bogleheads https://www.bogleheads.org/forum/index.php
Short PDF booklet http://www.etf.com/docs/IfYouCan.pdf
The forum you are on now
The thread I just posted on: http://forum.mrmoneymustache.com/investor-alley/changing-funds-to-match-advice-from-mr-collins-book/

Books in Order:
JL Collins "The Simple Path to Wealth"
Various "The Bogleheads' Guide to Investing"
W Bernstein "The Four Pillars of Investing"
others as well...

Anagnorisis

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Re: Investment Fund Choice??
« Reply #2 on: December 19, 2016, 08:22:09 PM »
Radagast has lore of herbs, beasts, birds and stocks?  A worthy Wizard, indeed.

Thanks for your time! I've read the Collins book, but am excited to dig into the others you mention.

Radagast

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Re: Investment Fund Choice??
« Reply #3 on: December 19, 2016, 09:28:48 PM »
Radagast has lore of herbs, beasts, birds and stocks?  A worthy Wizard, indeed.

Thanks for your time! I've read the Collins book, but am excited to dig into the others you mention.
I was studying shapes and hues, but I took some time off to straighten my finances.