Author Topic: Which 401K options would you go with?  (Read 938 times)

quelinda

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Which 401K options would you go with?
« on: August 18, 2015, 03:32:14 PM »
DH's company is changing their 401K plan. They will no longer offer the Fidelity Spartan index funds we've been contributing to, but they will be offering a few Vanguard Funds (& keeping one Fidelity Spartan bond fund).

Here are all the index funds they're offering...what would you put your money in?

  • Vanguard Institutional Index Fund Institutional Shares (VINIX) -- tracks the S&P 500, 0.04% expense ratio
  • Vanguard Mid-Cap Index Fund Institutional Shares (VMCIX) -- 0.08% expense ratio
  • Vanguard Small-Cap Growth Index Fund Admiral Shares (VSGAX) -- 0.09% expense ratio
  • Spartan U.S. Bond Index Fund-Fidelity Advantage Class (FSITX) -- 0.07% expense ratio

There are a few international funds, but they aren't index funds, nor are they with Fidelity or Vanguard.


matchewed

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Re: Which 401K options would you go with?
« Reply #1 on: August 18, 2015, 03:35:01 PM »
The lowest cost ones which reflect your desired Asset Allocation. Write an Investment Policy Statement, keep in mind that it has to reflect you and/or your husband's particular risk tolerance, conservatively anticipated returns, and acceptance of risks.

forummm

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Re: Which 401K options would you go with?
« Reply #2 on: August 18, 2015, 05:48:12 PM »
Those funds look lovely. As far as stocks go, the domestic market cap weighting (i.e. VTSAX) can be approximated by 70% VINIX, 20% VMCIX, and 10% VSGAX. So you could do something like that for the stock portion and then however much for the bond portion. But you could easily pick another allocation. Just stick with what your AA is.