Author Topic: Vanguard Individual 401K - Best Fund Choices - Tips  (Read 3251 times)

Fuzz

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Vanguard Individual 401K - Best Fund Choices - Tips
« on: April 13, 2015, 05:06:14 PM »
Hi folks:

Today I made my first contribution to my own individual 401K at Vanguard. The individual 401K is through my business, so I'm excited at all the pre-tax contributions I can make.

I know that I can't have admiral shares in a solo 401K at Vanguard.

I just chose VSTX, a bond fund, and an international stock fund.

Any other ones I should look at?

Also, if anyone has any pointers/tips on how to make sure I am within the requirements of the program at the end of the year (or anything else to watch out for), I'd appreciate it.


JasonS

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Re: Vanguard Individual 401K - Best Fund Choices - Tips
« Reply #1 on: April 13, 2015, 06:40:02 PM »
Read Merriman's strategy, see what you think.
http://paulmerriman.com/the-ultimate-buy-hold-strategy-2014/

forummm

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Re: Vanguard Individual 401K - Best Fund Choices - Tips
« Reply #2 on: April 13, 2015, 06:54:41 PM »
I know that I can't have admiral shares in a solo 401K at Vanguard.

Is that a Vanguard rule or just that you don't have enough money in the account yet?

I think if you have Total Stock, Total International, and a bond fund, you're in good shape. You can do some different tilts (like the previous poster mentions). But it's not necessary.

terran

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Re: Vanguard Individual 401K - Best Fund Choices - Tips
« Reply #3 on: April 13, 2015, 08:53:19 PM »
Is that a Vanguard rule or just that you don't have enough money in the account yet?

Yeah, vanguard doesn't allow admiral shares in their solo 401k for whatever reason. I'm about to open one with fidelity instead because of this (and use spartan funds).

forummm

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Re: Vanguard Individual 401K - Best Fund Choices - Tips
« Reply #4 on: April 14, 2015, 07:33:45 AM »
Is that a Vanguard rule or just that you don't have enough money in the account yet?

Yeah, vanguard doesn't allow admiral shares in their solo 401k for whatever reason. I'm about to open one with fidelity instead because of this (and use spartan funds).

That's surprising. Could you do a solo401k as a brokerage account? Then you could buy Vanguard ETFs at least, with the same fees as admiral.

Fuzz

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Re: Vanguard Individual 401K - Best Fund Choices - Tips
« Reply #5 on: April 14, 2015, 08:52:22 AM »
Is that a Vanguard rule or just that you don't have enough money in the account yet?

Yeah, vanguard doesn't allow admiral shares in their solo 401k for whatever reason. I'm about to open one with fidelity instead because of this (and use spartan funds).

Ha! I had the exact same rationale. So I started with Fidelity. However, Fidelity doesn't let you make electronic contributions. That's right, in 2015, you must mail a paper check to Fidelity to make a contribution to your account (some account rep told me of a backdoor involving your taxable account and a phone call). Apparently, this is to limit people from over-contributing. My laziness and hatred of paper checks overwhelmed my desire to lower the expense ratio by .03, and I went to Vanguard.

The contribution rules for what's employer/employee seem complicated.

lise

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Re: Vanguard Individual 401K - Best Fund Choices - Tips
« Reply #6 on: April 14, 2015, 08:56:21 AM »
Interesting about admiral in individual 401(k).  I have admiral in a SEP-IRA.
Wondering what the rationale is...