401k question [Which Funds to Invest?]

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401k question [Which Funds to Invest?]

Postby RedSoxFan » Fri Dec 21, 2012 11:07 am

I have approximately $200,000 in my 401k with Fidelity and I was going to invest most of the money in Spartan US Bond Index, Spartan Global ex US Index, and Spartan Total Market Index with 80% stock (20% of the stock will be international) and 20% bonds. With the remainder of the money, approximately 15%, I wanted to invest in some actively managed funds. Which active funds do Bogleheads invest?

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Re: 401k question [Which Funds to Invest?]

Postby Default User BR » Fri Dec 21, 2012 3:14 pm

RedSoxFan wrote: With the remainder of the money, approximately 15%, I wanted to invest in some actively managed funds.

Why?
RedSoxFan wrote:Which active funds do Bogleheads invest?

The only I use is my company stable-value fund. Some people like Wellington and Wellesly.


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Re: 401k question [Which Funds to Invest?]

Postby dbr » Fri Dec 21, 2012 4:27 pm

RedSoxFan wrote:I have approximately $200,000 in my 401k with Fidelity and I was going to invest most of the money in Spartan US Bond Index, Spartan Global ex US Index, and Spartan Total Market Index with 80% stock (20% of the stock will be international) and 20% bonds. With the remainder of the money, approximately 15%, I wanted to invest in some actively managed funds. Which active funds do Bogleheads invest?

Scott


Investing in active funds "just because" probably doesn't make any sense. That said, most Vanguard Treasury bond funds are not index funds and hence technically active funds.

Like the previous poster, I use a stable value fund in my 401K.

Personally I just don't follow the fascination some have with Wellington and Wellesley, but they have their fans. I'm not sure that finding "fans" for a fund is a reason to invest in it.

For some people a tax managed fund might be helpful, but that is a special case.
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Re: 401k question [Which Funds to Invest?]

Postby ruralavalon » Fri Dec 21, 2012 4:32 pm

I use a managed fund only if no index fund is available for the part of the market I want to invest in. And then only if a low turnover, low cost choice is offered.

Examples:
Vanguard Precious Metals and Mining Fund (VGPMX); and
Vanguard Intermediate-Term Investment-Grade Fund Admiral Shares (VFIDX).
Last edited by ruralavalon on Fri Dec 21, 2012 4:44 pm, edited 1 time in total.
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Re: 401k question [Which Funds to Invest?]

Postby DSInvestor » Fri Dec 21, 2012 4:41 pm

I hold 3 index funds (TSM, FTSE Large and TBM) and 1 actively managed fund (Vanguard Inflation Protected Securities VIPSX VAIPX Admiral).

Lot's of 401k plans have PIMCO Total Return Bond fund which is actively managed and probably used by many Bogleheads. If I had a choice of PIMCO Total Return, VG Total Bond, Fidelity Spartan US Bond Index, I'd probably stick with the index offerings.
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