So I am going to finally be eligible for my 401(k) as of 7/1 at my employer and I just got off the phone with the investment professional that manages out plan because the questions I was asking HR could not answer. At this point all I asked was they offer VBTLX but they did not offer VTSAX and I was hoping they might add in the future. Our plan is administered by Voya and I guess they at not able to get VTSAX for some reason. Instead they offer VFIAX, among other. The full list is below:
Voya Fixed Account
PIMCO Income Fund - Institutional Class
AB Global Bond Fund - Class Z
VanguardŽ Total Bond Market Index Fund - Admiral Shares
VanguardŽ High-Yield Corporate Fund - Admiral Shares
VanguardŽ Target Retirement 2010 Fund - Investor Shares
VanguardŽ Target Retirement 2020 Fund - Investor Shares
VanguardŽ Target Retirement 2030 Fund - Investor Shares
VanguardŽ Target Retirement 2040 Fund - Investor Shares
VanguardŽ Target Retirement 2050 Fund - Investor Shares
VanguardŽ Target Retirement 2055 Fund - Investor Shares
VanguardŽ Target Retirement 2060 Fund - Investor Shares
VanguardŽ Target Retirement 2015 Fund - Investor Shares
VanguardŽ Target Retirement 2035 Fund - Investor Shares
VanguardŽ Target Retirement 2045 Fund - Investor Shares
VanguardŽ Target Retirement Income Fund - Investor Shares
VanguardŽ Target Retirement 2025 Fund - Investor Shares
VYŽ T. Rowe Price Capital Appreciation Portfolio - Class R6
VanguardŽ Value Index Fund - Admiral Shares
VanguardŽ 500 Index Fund - Admiral Shares
American Funds AMCAP FundŽ - Class R-6
DFA Real Estate Securities Portfolio - Institutional Class
Janus Triton Fund - Class N Shares
VanguardŽ Mid-Cap Growth Index Fund - Admiral Shares
VanguardŽ Small-Cap Value Index Fund - Admiral Shares
Franklin Utilities Fund - Class R6
Victory Sycamore Established Value Fund - Class R6
VanguardŽ Mid-Cap Index Fund - Admiral Shares
VanguardŽ Small-Cap Index Fund - Admiral Shares
American Funds EuroPacific Growth FundŽ - Class R-6
American Funds Capital Income BuilderŽ - Class R-6
American Funds New World FundŽ - Class R-6
They include 30 basis points of management fees for both Voya and this guys firm as a "wrapper" around the fees for the funds, so VFIAX for example will cost me 0.35% in the 401(k) instead of 0.05%. This seems to be by lowest cost option but obviously is not as fully covered as VTSAX.
So my questions:
- Since I want to just do as close the the Bogle two-fund portfolio as possible, can I achieve that was VBTLX and VFIAX or would you recommend something else?
- My company does not require anything to get their "match". I can invest 0% and get the 3% they put in plus our profit sharing. Given that the fees are higher, would I be better off just not contributing to the 401(k) and just adding to my IRA or is the tax savings worth the extra 0.30% fee on everything? This is where I'm not as well versed with the math and need the help of the MMM gurus.
To help answer the questions, I'm in the higher tax brackets (33%).
Thanks!