Author Topic: Company 401k Allocation Help  (Read 1022 times)

midwestheel

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Company 401k Allocation Help
« on: November 15, 2017, 09:54:38 AM »
My company offers a 401k, but doesn't offer VTSAX.  They do offer a few Vanguard funds, as well as others from JPMorgan, Schwab, and T Rowe Price.  Based on the options below, can you give me some advice on where I should be allocating my money?

Schwab S&P500 Index: SWPPX
TRP Blue Chip Growth: TRBCX
Vanguard Mid Cap Index: VIMAX
Vanguard Small Cap Index: VSMAX
Vanguard Value Index: VIMAX

There are also some Schwab target retirement date funds available, as well as RERGX, JSCOX, FLMVX, WACXP, and ODVIX. My current allocation is 20% on SWPPX, RERGX, VIMAX, VSMAX, and VIMAX. I'm new to investing, so this I apologize if this post is too much info.

I'm 34 currently, and have roughly $2k to invest per month.

Proud Foot

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Re: Company 401k Allocation Help
« Reply #1 on: November 15, 2017, 10:12:36 AM »
According to the Bogleheads approximating total stock market chart you would want to use these three funds and approximate allocations.(rounded to nearest 5% for simplicity)

Schwab S&P500 Index: 80%
Vanguard Mid Cap Index: 5%
Vanguard Small Cap index: 15%

What are the ER's for your funds?

midwestheel

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Re: Company 401k Allocation Help
« Reply #2 on: November 15, 2017, 10:26:18 AM »
Schwab S&P500 Index: 80% - 0.03%
Vanguard Mid Cap Index: 5% - 0.06%
Vanguard Small Cap index: 15% - 0.06%

midwestheel

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Re: Company 401k Allocation Help
« Reply #3 on: November 15, 2017, 02:35:33 PM »
Also just found out that we have a 0.175% Invest Advisory Fee on top of the others, billed quarterly at .04375%

Adding those up, here are my ER's for those three funds:

Schwab S&P500 Index: 80% - 0.205%
Vanguard Mid Cap Index: 5% - 0.235%
Vanguard Small Cap index: 15% - 0.235%

Proud Foot

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Re: Company 401k Allocation Help
« Reply #4 on: November 15, 2017, 03:53:11 PM »
Looks like you have a good plan and the additional advisory fee isn't bad either.  Not much you can do about that one.  If I had those options I would either go all in on the S&P500 or do the allocation I listed in my previous post.