Author Topic: Vanguard Solo 401K w/ VTSAX  (Read 1898 times)

JenniferW

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Vanguard Solo 401K w/ VTSAX
« on: February 11, 2019, 01:18:20 PM »
Good news, I am sure someone else has probably already mentioned it here, but I figure I'll share.

I just setup a Vanguard Solo Roth 401K today and they now allow you to choose Admiral Shares class funds such as VTSAX.

I chose VTSAX alone as the sole fund, to keep the annual fees minimal at $20 per year -- $20 fee waved after you accumulate $50k in total Vanguard assets between all types of Vanguard accounts.

This is great because they only allowed Investor Shares class funds before and were much higher expense ratios.  Love that VTSAX is only .04% and that I now have access to it in Solo 401k!

I decided to go this route instead of eTrade and TD Ameritrade, because I know I'd be tempted to invest in individual stocks on the other platforms and I don't want to do that.  I just want to make monthly contributions to VTSAX and be done with it.

Since I also have Roth IRA with Vanguard, I can diversify there if I want to.  55% of my monthly retirement savings will go into the Solo Roth 401K and 45% into the Roth IRA.  So this leaves me plenty of room if I want to move some VTI into BND in my IRA account.   I would never want more than 45% bond asset allocation anyways.

JenniferW

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Re: Vanguard Solo 401K w/ VTSAX
« Reply #1 on: February 11, 2019, 01:21:04 PM »
Also, there is no $3000 minimum requirement for VTSAX in a Solo 401k account, unlike IRA account.  Minimum is $0. So in a few days once the application is approved, I'll be putting $662 into VTSAX for January -- my net profit for January was $713.39.

I'll also be putting $500 (max) into Roth IRA.  So $1162 total contributions between the two accounts for January. Hoping to put in an average of $1100 or better per month into these two accounts.
« Last Edit: February 11, 2019, 01:26:31 PM by JenniferW »

bacchi

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Re: Vanguard Solo 401K w/ VTSAX
« Reply #2 on: February 12, 2019, 11:54:02 AM »
Good choices and thanks for the info.

At that savings rate, you're set for ER.

JenniferW

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Re: Vanguard Solo 401K w/ VTSAX
« Reply #3 on: February 12, 2019, 03:18:08 PM »
Good choices and thanks for the info.

At that savings rate, you're set for ER.

Thanks.  There will also be another $900 per month savings in regular investment accounts.  I save around $2k per month.

JenniferW

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Re: Vanguard Solo 401K w/ VTSAX
« Reply #4 on: February 14, 2019, 12:55:12 AM »

BradleyChambers

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Re: Vanguard Solo 401K w/ VTSAX
« Reply #5 on: March 07, 2019, 05:40:16 AM »
Quote
Good news, I am sure someone else has probably already mentioned it here, but I figure I'll share.

I just setup a Vanguard Solo Roth 401K today and they now allow you to choose Admiral Shares class funds such as VTSAX.

I chose VTSAX alone as the sole fund, to keep the annual fees minimal at $20 per year -- $20 fee waved after you accumulate $50k in total Vanguard assets between all types of Vanguard accounts. Also, I am going to write business essay about that at Edubirdie (here the link). Check it.

This is great because they only allowed Investor Shares class funds before and were much higher expense ratios.  Love that VTSAX is only .04% and that I now have access to it in Solo 401k!

I decided to go this route instead of eTrade and TD Ameritrade, because I know I'd be tempted to invest in individual stocks on the other platforms and I don't want to do that.  I just want to make monthly contributions to VTSAX and be done with it.

Since I also have Roth IRA with Vanguard, I can diversify there if I want to.  55% of my monthly retirement savings will go into the Solo Roth 401K and 45% into the Roth IRA.  So this leaves me plenty of room if I want to move some VTI into BND in my IRA account.   I would never want more than 45% bond asset allocation anyways.

This is a good one. Thanks. We should try use this info for making success too.
« Last Edit: March 07, 2019, 05:42:01 AM by BradleyChambers »

JenniferW

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Re: Vanguard Solo 401K w/ VTSAX
« Reply #6 on: March 07, 2019, 09:13:48 AM »
I notice in the quote of what I said in last post, it has an extra line in it that I did not type.  I don't know why it would be added:

"Also, I am going to write business essay about that at Edubirdie (here the link). Check it."

HAPPYINAZ

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Re: Vanguard Solo 401K w/ VTSAX
« Reply #7 on: March 17, 2019, 08:35:06 AM »
Congratulations on getting your solo 401k setup and making a good investment plan and limiting your temptations that might derail you! You will be amazed what will happen over time with regular investment!