Author Topic: Vanguard investments 401K  (Read 2608 times)

aalferez

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Vanguard investments 401K
« on: June 29, 2017, 10:33:09 AM »
Hi,

So I went to check my investments on my 401K.
Since I put my age in the investment tool, I guess it did the math and placed my investments in

Target Retirement 2055 Trust II

I see the allocations for this plan and they are:
Ranking by Percentage   Fund   Percentage
1   Vanguard Total Stock Market Index Fund Institutional Plus Shares   54.0%
2   Vanguard Total International Stock Index Fund Institutional Plus Shares   36.0%
3   Total Bond Market II Index Fund Institutional Shares**   7.2%
4   Vanguard Total International Bond Index Fund Institutional Shares   2.8%
Total      100.0%

I was looking to buy VTSAX but I cannot find it in the list.
Anyone has some tips that can help me?

I'm aware that this mix of the 2055 retirement target has 90% stock 10% bond, but I was looking for investing mostly in VTSAX.

Thank you

Scortius

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Re: Vanguard investments 401K
« Reply #1 on: June 29, 2017, 10:47:05 AM »
Your available funds are determined by your employer and the plan they selected.  For example, my 401k is through Fidelity, but they offer the Vanguard Target Retirement funds as an option.  VTSAX is not included, but Fidelity has their own index funds you can select.  They're easy to find, they're the ones with the really low expense ratios!

You may not be able to select VTSAX directly, but you can possibly find something very similar, depending on your plan.  If there isn't a total stock index, you can either go fully large cap, or recreate VTSAX with approximately 70% large cap, 20% mid cap, and 10% small cap.

dandarc

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Re: Vanguard investments 401K
« Reply #2 on: June 29, 2017, 10:50:18 AM »
If you want any specific advice, please post a list of the funds that are available in your 401K, along with Expense Ratios.

In general, you can usually do a lot worse than a Vanguard Institutional Target Retirement fund, so you're probably OK even if you stand pat.

Scortius

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Re: Vanguard investments 401K
« Reply #3 on: June 29, 2017, 10:58:31 AM »
If you want any specific advice, please post a list of the funds that are available in your 401K, along with Expense Ratios.

In general, you can usually do a lot worse than a Vanguard Institutional Target Retirement fund, so you're probably OK even if you stand pat.

Very true! I have my work 401k in a Vanguard Target Retirement.  I think the expense ratio through Fidelity is 0.07.  Pretty good for a blended fund.

Aggie1999

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Re: Vanguard investments 401K
« Reply #4 on: June 29, 2017, 12:20:41 PM »
One potential problem with the Vanguard target retirement funds is the bond allocation. Some think that for long term targets the bond portion does nothing but drag down the portfolio. Also, the bond portion increases as the target date nears. That can be good or bad.

A ~40 year timeline certainly meets that criteria. Post up all the funds and their expense ratios available in your 401k and people here can give more specific advise.

aalferez

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Re: Vanguard investments 401K
« Reply #5 on: June 29, 2017, 01:52:47 PM »
Here are all my options:



http://imgur.com/LGpBBh1
http://imgur.com/jP2caVf
http://imgur.com/bYEZuJX

For some reason images are not displayed, you have to go to imgur. Sorry about that.

What about the Brunswick ESOP Co Stock, they are SP 500, and with a 0% ER; I guess it's because its the company I work for.
« Last Edit: June 29, 2017, 01:55:36 PM by aalferez »

dandarc

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Re: Vanguard investments 401K
« Reply #6 on: June 29, 2017, 02:11:36 PM »
Wow - fantastic options!

Option 1 - pick a target date fund.  Simple and easy, and you've got very good ones available.  If you don't like the sliding-allocation of target date funds, you can always switch to a different date periodically to keep close to your target allocation.

Option 2 - VTSAX can be replicated by going about 80/20 VINIX / VIEIX.  If you want bonds and/or international stock, use VBTIX/VTSNX.

If you wanted to very closely replicate the target date funds 90 stocks/10 bonds at a slightly lower cost, you could go with:

43% VINIX (Institutional Index), 11% VIEIX (Extended Market), 36% VTSNX (Total International), 10% VBTIX (Total Bond) or something thereabouts.