Author Topic: Where to allocate within my 401k  (Read 1144 times)

sportsportsports

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Where to allocate within my 401k
« on: October 16, 2017, 09:39:15 AM »
I need some advice on where to allocate my investments within my 401k through my job. For some background, I am 25 in the first 6 months at my job.

Currently I place 5% into a Roth 401k to get a 4% match (so 9% total). I also have a Roth IRA which I am on track to max out where I have my funds in VTSAX. I plan on putting an additional 10% into a traditional 401k to drop my taxable income into the next lowest tax bracket. so my investment plan is 1) Roth 401k to match, 2) max out IRA to use vanguard funds, 3) increase pre-tax 401k contribution.

My specific questions are:
1) where should I invest my money within my 401k?
2) should I potentially shift my focus more on opening a non-retirement investing account with Vanguard so I can use their funds and save a little less in my 401k? I know the standard is 401k to match, IRA, max out 401k, then invest additional money (I have no debt !!! and have a full cash-on-hand account already), but I'm trying to see if maybe I should mix that order up in my case?

Unfortunately, I cannot invest in any Vanguard funds within my 401k and all the options have pretty high expense ratios. Therefore, I'm a little lost at what to do with investing that money, so any advice would be appreciated! The funds I can invest in are listed below with their expense ratio:

Income

    Invesco Stable Asset Fund    1.10%     

    PIMCO Total Return Fund - Class A      0.85%   

    State Street U.S. Bond Index Securities Lending Series Fund - Class VIII     0.712%     

    Prudential High Yield Fund - Class A        0.82%   

    PIMCO Real Return Fund - Class A        1.04%   


 Growth & Income

    T. Rowe Price Retirement 2010 Fund - Class R   1.07%      

    T. Rowe Price Retirement 2015 Fund - Class R   1.09%     

    T. Rowe Price Retirement 2020 Fund - Class R   1.13%      

    T. Rowe Price Retirement 2025 Fund - Class R   1.17%          

    T. Rowe Price Retirement 2030 Fund - Class R   1.19%    

    T. Rowe Price Retirement 2035 Fund - Class R   1.22%     

    T. Rowe Price Retirement 2040 Fund - Class R   1.24%      

    T. Rowe Price Retirement 2045 Fund - Class R   1.24%     

    T. Rowe Price Retirement 2050 Fund - Class R   1.24%   

    T. Rowe Price Retirement 2055 Fund - Class R   1.24%     

    American Century Strategic Allocation: Moderate Fund - Class A   1.32%   

    T. Rowe Price Retirement Balanced Fund - Class R      1.06%         


 Growth

    Invesco Comstock Fund - Class A      0.84%   

    JPMorgan U.S. Equity Fund - Class A      0.94%   

    State Street S&P 500 Index Securities Lending Series Fund - Class IX    0.703%      

    Alger Capital Appreciation Institutional Fund - Class I      1.12%       

    State Street S&P MidCap Index Non-Lending Series Fund - Class J       0.712%       


 Aggressive Growth

    Delaware Small Cap Value Fund - Class A     1.24%   

    State Street Russell Small Cap Index Securities Lending Series Fund - Class VIII      0.962%     

    Eagle Small Cap Growth Fund - Class A   1.15%       

    Neuberger Berman Genesis Fund - Advisor Class    1.38%

    MFS International Value Fund - Class R2       1.26%   

    State Street International Index Securities Lending Series Fund - Class VIII        0.990%   

    Virtus Vontobel Emerging Markets Opportunities Fund - Class A     ​1.58%   

    Prudential Jennison Natural Resources Fund - Class A       1.25%
« Last Edit: October 16, 2017, 09:46:04 AM by sportsportsports »

Radagast

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Re: Where to allocate within my 401k
« Reply #1 on: October 16, 2017, 08:33:44 PM »
1. Either of these two is acceptable:

State Street S&P 500 Index Securities Lending Series Fund - Class IX    0.703%     
State Street S&P MidCap Index Non-Lending Series Fund - Class J       0.712%

The top is an S&P500 fund, the bottom is S&P400 (which in practice is very similar to Vanguard's small cap fund, but with an absurd expense ratio).


2. There is a spreadsheet here with a calculator for this question. https://forum.mrmoneymustache.com/forum-information-faqs/case-study-spreadsheet-updates/msg1732867/#msg1732867