Hello fellow mustachians,
I'm 30 years old , and about to open my first retirement plan (about time, right?).
My employer offers 25% match, and so I want to max out that benefit.
The 401k provider is Vangaurd (I also have personal investing account with them)
Since it's my first time dealing with 401k decisions I have a few questions:
- Will Vanguard automatically stop withdrawing money from my salary once the contribution hits the 18K limit within a calendar year?
- I want to make sure that I understand the terms: assume annual salary is 120K (=10K pretax per month), and I've chosen SALARY DEFERRAL
=50%, then first month 5K will be deducted from my pretax paycheck, same goes for the second and third month (15K in 401k so far), and at the fourth month only 3K will be deducted (the portion that completes to 18K) from now on $0 will be duducted from my paycheck to 401k.
Is that calculation correct?
- Contribution allocation - how to decide?
My first instinct was to go 100% for "Target Retirement 2045 Trust II" (as I'm expecting to be 60 years old in 2046)
The list of options is quoted below
Any advice/insight will be much appreciated!
Thanks.
All-in-one Target Date Funds
Target Retire Inc Tr II — 1471 Balanced Fund (Stocks and Bonds)
Target Retire 2010 Tr II — 1472 Balanced Fund (Stocks and Bonds)
Target Retire 2015 Tr II — 1473 Balanced Fund (Stocks and Bonds)
Target Retire 2020 Tr II — 1474 Balanced Fund (Stocks and Bonds)
Target Retire 2025 Tr II — 1475 Balanced Fund (Stocks and Bonds)
Target Retire 2030 Tr II — 1476 Balanced Fund (Stocks and Bonds)
Target Retire 2035 Tr II — 1477 Balanced Fund (Stocks and Bonds)
Target Retire 2040 Tr II — 1478 Balanced Fund (Stocks and Bonds)
Target Retire 2045 Tr II — 1479 Balanced Fund (Stocks and Bonds)
Target Retire 2050 Tr II — 1480 Balanced Fund (Stocks and Bonds)
Target Retire 2055 Tr II — 1489 Balanced Fund (Stocks and Bonds)
Target Retire 2060 Tr II — 1693 Balanced Fund (Stocks and Bonds)
Domestic Equities
Columbia Mid Cap Vl Trt A — 6086 Domestic Stock Fund
Fidelity® Contrafund® FCNTX 0603 Domestic Stock Fund
Neuberger Berman Socially Rspns Inst NBSLX O671 Domestic Stock Fund
TRP US Sm Cap Val Eq Tr D — 6060 Domestic Stock Fund
Vanguard Equity Income Fund Adm VEIRX 0565 Domestic Stock Fund
Vanguard Extended Mkt Index Inst VIEIX 0856 Domestic Stock Fund
Vanguard Inst Index Fund Inst VINIX 0094 Domestic Stock Fund
Vanguard Mid-Cap Growth Fund VMGRX 0301 Domestic Stock Fund
Fixed Income
Vanguard Prime Money Market Adm VMRXX 0066 Short-Term Reserves
BlackRock High Yield Bond K BRHYX 8561 Bond Fund
Dodge & Cox Income DODIX 0387 Bond Fund
PIMCO Foreign Bond (USD-Hedged) I PFORX 1427 Bond Fund
Vanguard Total Bond Mkt Index Inst VBTIX 0222 Bond Fund
International
American Funds New World R6 RNWGX S523 International Stock Fund
Vanguard Tot Intl Stock Ix Inst VTSNX 1869 International Stock Fund
William Blair Instl International Gr WBIIX D051 International Stock Fund
Specialty & Sector Investments
PIMCO All Asset All Authority Inst PAUIX 8058 Balanced Fund (Stocks and Bonds)
T. Rowe Price Global Technology PRGTX 3111 Specialty Stock Fund
Vanguard Materials Index Fund Adm VMIAX 5481 Specialty Stock Fund
Vanguard REIT Index Fund Adm VGSLX 5123 Specialty Stock Fund