Author Topic: Please share your thoughts on 401k investment options  (Read 1280 times)

Sibley

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Please share your thoughts on 401k investment options
« on: August 24, 2015, 06:25:24 PM »
I got curious about the status of my 401k and IRA accounts, given all the news about the stocks being on sale. So I logged in and discovered that my net worth is actually positive (surprise!). Then I saw the link about changing allocations, which I'd looked for a while ago and couldn't find, so clicked on it. I've discovered that pre-MMM me was pretty dumb.

I've attached a file with screenshots of all my investment options, hopefully this gives you enough information. Right now, I'm in the top 5 expense ratio ones. Any suggestions would be appreciated. My risk tolerance is pretty high (remember, I ignore this for months or years at a time), I'm almost 30 and 10+ years out from FI.

Also, should I fix the allocations now, or wait a bit? I just don't want to forget, but I can add something to my calendar.


seattlecyclone

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Re: Please share your thoughts on 401k investment options
« Reply #1 on: August 24, 2015, 06:59:04 PM »
Step 1) Determine what you want your asset allocation to be. Decide what percentage of your portfolio should be stocks, and what percentage should be bonds. Then decide how much should be US-based and how much should be international. This allocation should apply to the sum total of your accounts, and does not necessarily need to be reflected perfectly in each individual account.
Step 2) Buy the S&P 500 fund in your 401(k) until you've satisfied the domestic stock part of your allocation. If you still have money left to allocate in your 401(k), go with the core bond fund. All of your other funds are too expensive.
Step 3) Buy Vanguard funds in your IRA to fill out the rest of your asset allocation.

Since it sounds like you have the bulk of your savings in these tax-advantaged accounts, there's no real reason to wait.

Sibley

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Re: Please share your thoughts on 401k investment options
« Reply #2 on: August 25, 2015, 07:38:57 AM »
Following that, the entire 401k should be the S&P 500. Makes it easier too, since the website is a pain.

Thanks!

milesdividendmd

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Re: Please share your thoughts on 401k investment options
« Reply #3 on: August 25, 2015, 06:23:39 PM »
Following that, the entire 401k should be the S&P 500. Makes it easier too, since the website is a pain.

Thanks!

Agree with S&P.  Would consider the dodge and cox international for diversification, but I agree that the ER is too high.  Better to load up in international index funds in your IRA.