Author Topic: New here and need help with 401k allocations  (Read 1770 times)

ajachim

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New here and need help with 401k allocations
« on: August 19, 2015, 08:19:11 PM »
Hello everyone, Im 23 and new to this forum. Ive began contributing to my 401k recently at work (offered through BB&T. Ive been reading and I saw that vangaurd is the way to go but I had some questions. First off I was wondering if the fees people refer to with 401ks are assessed by the individual companies through which the 401k is through? Or is it from the stocks you purchase? The next is how would you distribute your funding. Thanks alot I really enjoy everything that goes on here :)

Here are the options I have to choose from:

International Funds
1.Dodge & Cox International Stoc 
 2.Vanguard Total Intl Stock Indx 


Mid-Cap Equity
   1.Ariel Fund 


Large Cap Equity
  1.Dodge & Cox Stock 
  2.Vanguard Total Stk Mkt Index I 


Balanced Funds
  1.Dodge & Cox Balanced 
  2.T Rowe Price Cap Appreciation 



Bond Funds
  1.Dodge & Cox Income 
  2.Vanguard Total Bd Mkt Idx I 


Cash Equivalents / Stable Value
  1.BB&T Insured Deposit Program 
 2..Vanguard Prime Money Mkt Cl I 

MDM

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Re: New here and need help with 401k allocations
« Reply #1 on: August 19, 2015, 08:40:32 PM »
First off I was wondering if the fees people refer to with 401ks are assessed by the individual companies through which the 401k is through? Or is it from the stocks you purchase? The next is how would you distribute your funding.

ajachim, welcome to the forum.

There are (at least) two types of 401k fees. 
One is an administrative charge for having a 401k account at all.  This is usually in the range $0 to $50/yr (yes, sometimes $0 to you if your employer pays it).
The other is a fee specific to the individual fund(s) you choose.  These should be displayed somewhere in the information given (or available) to you about your 401k plan.

If, as is usually the case, the Vanguard funds have the lowest fees, you could so something such as
Vanguard Total Intl Stock Indx  - 30%
Vanguard Total Stk Mkt Index I  - 60%
Vanguard Total Bd Mkt Idx I  - 10%

Other allocations are also defensible.  See http://www.bogleheads.org/wiki/Bogleheads%C2%AE_investment_philosophy and http://www.bogleheads.org/wiki/Asset_allocation and http://www.bogleheads.org/wiki/Three-fund_portfolio.

ajachim

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Re: New here and need help with 401k allocations
« Reply #2 on: August 19, 2015, 08:46:24 PM »
Great insight. Thanks for the input!