The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: Money Mouse on August 27, 2015, 08:38:18 AM
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I currently have 100% of my 401k money in the Vanguard LifeStrategy Growth Fund (80% stocks/20% bonds). I've been happy with it, but looking at the other options offered by my plan, I wonder if I could be doing better?
I'm thinking of leaving my existing money where it is, but putting future contributions in the S&P 500 index (which was just added a few years ago as an option). But I'm open to any suggestions. I'm very much a KISS investor (Keep It Simple, Stupid) so I don't want to necessarily have my contributions divided among 5 different funds and then needing to go and rebalance every 3 months (or whatever). But if having it divided between 2 or 3 funds and adjusting every 12-18 months makes more sense than where it's currently parked, I'm open to it. I also don't mind a bit of risk, I don't need this money for another 20 years (this current downturn doesn't have me phased at all, I was thinking of making this change for the last few months now).
Money Market
Advantus Money Market
General Bond
Vanguard Interm-Term Bond Index I
US Stock
Advantus S&P 500® Index
T. Rowe Price Large Cap Growth
Loomis Sayles Value Admin
DFA US Small Cap I
International Stock
Vanguard Total Intl Stock Index I
Sector Stock
Van Eck Global Hard Assets A
Ivy Real Estate Securities Y
Balanced
Vanguard LifeStrategy Cnsrv Gr Inv
Vanguard LifeStrategy Growth Inv (this is where my money is parked right now)
Vanguard LifeStrategy Moderate Gr Inv
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I think you are fine where you are. My only thoughts are little international might not hurt (great debate here as most large US companies derive a solid portion of their revenue from foreign sources), and I'm curious as to what the expense ratio on the Advantus S&P 500 index is, but I doubt it is better than Vanguard.
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I currently have 100% of my 401k money in the Vanguard LifeStrategy Growth Fund (80% stocks/20% bonds). I've been happy with it, but looking at the other options offered by my plan, I wonder if I could be doing better?
I'm thinking of leaving my existing money where it is, but putting future contributions in the S&P 500 index (which was just added a few years ago as an option). But I'm open to any suggestions. I'm very much a KISS investor (Keep It Simple, Stupid) so I don't want to necessarily have my contributions divided among 5 different funds and then needing to go and rebalance every 3 months (or whatever). But if having it divided between 2 or 3 funds and adjusting every 12-18 months makes more sense than where it's currently parked, I'm open to it. I also don't mind a bit of risk, I don't need this money for another 20 years (this current downturn doesn't have me phased at all, I was thinking of making this change for the last few months now).
Money Market
Advantus Money Market
General Bond
Vanguard Interm-Term Bond Index I
US Stock
Advantus S&P 500® Index
T. Rowe Price Large Cap Growth
Loomis Sayles Value Admin
DFA US Small Cap I
International Stock
Vanguard Total Intl Stock Index I
Sector Stock
Van Eck Global Hard Assets A
Ivy Real Estate Securities Y
Balanced
Vanguard LifeStrategy Cnsrv Gr Inv
Vanguard LifeStrategy Growth Inv (this is where my money is parked right now)
Vanguard LifeStrategy Moderate Gr Inv
Personally, if the expense ratio on the S&P 500 fund is less than .25, I'd put 100% into it, then when you are closer to retirement, start switching to the vanguard lifestrategy growth inv.
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Vanguard Growth (where I'm at) is 0.26% expense, the S&P 500 fund is 0.16.%
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Vanguard Growth (where I'm at) is 0.26% expense, the S&P 500 fund is 0.16.%
If this is true i'd go 100% to S&P 500, but if I'm not mistaken the VASGX (Vanguard LifeStrategy Growth Fund) is only .17%, maybe you have the 2 mixed up?
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Vanguard Growth (where I'm at) is 0.26% expense, the S&P 500 fund is 0.16.%
If this is true i'd go 100% to S&P 500, but if I'm not mistaken the VASGX (Vanguard LifeStrategy Growth Fund) is only .17%, maybe you have the 2 mixed up?
No, the info sheet for my 401k has .26 under the "total expense" column, and .17 for the S&P fund. So keep current funds where they are at and put 100% of new contributions in the S&P fund?
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Vanguard Growth (where I'm at) is 0.26% expense, the S&P 500 fund is 0.16.%
If this is true i'd go 100% to S&P 500, but if I'm not mistaken the VASGX (Vanguard LifeStrategy Growth Fund) is only .17%, maybe you have the 2 mixed up?
No, the info sheet for my 401k has .26 under the "total expense" column, and .17 for the S&P fund. So keep current funds where they are at and put 100% of new contributions in the S&P fund?
Personally, I would move your current balance and future contributions all to the S&P Fund until you are closer to retirement age, however both funds are great and it's hard to go wrong with either one(assuming that S&P 500 fund is only .16% expense ratio).
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The LifeStrategy Growth fund is not a bad one at all. It already has a good split between stocks and bonds, and it has a pretty high percentage of international assets within each category as well. You didn't post the expense ratios of your other funds, but my guess is that by switching to some other set of funds you would be able to shave no more than 0.1% off of your weighted average expense ratio (likely less), and would need to monitor your different asset classes to make sure they stay in balance.