Thank you reading this post. I’ve been lurking for the last year and have been reading as much as I can about index fund investing. I moved my Roth IRA funds over from Edward Jones 2 years ago and have been very happy no longer paying loads and account maintenance fees. I have just finished reading the Bogleheads Guide to Investing, will probably re-read it again soon.
At age 31, I already feel so overwhelmed with the investment options out there.
I feel so behind having only started investing in my retirement for 2 years. Prior to this our number 1 priority was owning a home and paying off student loans. Although I suppose it’s a great time to jump in since stocks have only been going up. I know this won’t always be the case.
I wish my company offered their 401K through Vanguard. Unfortunately we are with MassMutual. Fortunately there is a 3% company match.
I signed up with the company 401K plan 2 years ago and did not know much about investing (still constantly learning).
I checked the investment selection portfolio labeled “Aggressive”
And it consists of the following. I’ve been listing the net expense ratio (not sure what the difference between gross and net expense ratio is)
Aggressive Portfolio (default options):
2% Stable Value Fixed Interest Fund
12% Select PIMCO Total Return MSPHX (0.67%)
2% Oppenheimer International Bond Y OIBYX (0.73%)
4% Eaton Vance Large-Cap Value A LW EHSTX.lw (0.98%)
4% Columbia Diversified Equity Income R4 IDQYX (0.93%)
13% MM 2&P 500 Index Fund MIEYX (0.45%)
13% T. Rowe Price Spectrum Growth PRSGX (0.80%)
3% Select Sands / Delaware Growth Opportunities Fund MAGYX (0.95%)
2% Alger Capital Appreciation A LW ACAAX.lw (1.31%)
3% American Funds Growth Fund of Amer R4 RGAEX (0.68%)
2% JPMorgan Mid Cap Value Sel JMVSX (1.00%)
6% Mid Cap Index (Northern) NOMIX (0.16%)
2% Nuveen Mid Cap Growth Opp I FISGX (1.03%)
2% Allianz NFJ Small Cap Value A LW PCVAX.lw (1.19%)
7% Small Cap Index (Northern) NSIDX (0.16%)
2% Invesco Small Cap Discovery A LW VASCX.lw (1.42%)
2% Allianz NFJ International Value A LW AFJAX.lw (1.30%)
10% American Funds EuroPacific Gr R4 REREX (0.85%)
2% Invesco Van Kampen International Growth Fund AIIEX (1.40%)
3% Oppenheimer Developing Markets Y ODVYX (1.00%)
4% Oppenheimer Real Estate Y OREYX (1.13%)
I was hoping that someone could critique this 401K choice. Currently I am contributing 10% of my pre-tax income into this 401K, looking to ramp it up in the near future. I was considering switching to a single fund Advantage Dow Jones Target 2045 (Wells Fargo) WFQPX (0.52%) just for simplicity sake.Emergeny Fund:
We have combined 3 months worth of expenses (including mortgage payment) just sitting in a savings account. Debt:
$394,368 Mortgage at 3.5% with 19 years left.
This is the only debt that we have. Tax Filing Status:
Married Filing JointlyTax Rate:
I think 25% (pardon my ignorance but I’m not sure how to determine this – will update) Income:
My annual salary is $95,000 Wife’s annual salary is $40,000State of Residence:
31 for him, 30 for herDesired Asset allocation:
something aggressive like 90% stocks / 10% bondsDesired International allocation:
I’m not sure, please recommend for me.
No Taxable account yet (saving up cash and looking to open a 3 fund portfolio Vanguard Total Stock Market (VTSMX), Vanguard Total International (VGTSX), Vanguard Total Bond Market (VBMFX) in this account. My other option was to open a Vanguard LifeStrategy Growth Fund (VASGX). I’ve been waiting for a RBD before I jump in and open a taxable account. What happened to “Sell in May?” I know I shouldn’t try to time the market. The only thing holding me back is needing to save up the minimum amount to open the account ($3,000).
Currently we both have the Vanguard Target Retirement 2045 (VTIVX) as our only fund in both of our Roth IRAs at Vanguard.His ROTH IRA:
49.5% Target Retirement 2045 VTIVXHis 401K:
50.50% In the above "aggressive mixed 401K" portfolioHer ROTH IRA:
100% investment in Target Retirement 2045 VTIVX
She does not have a work 401K
1. Should I stay with my current “aggressive” portfolio in my 401K with MassMutual or switch over to the Target date fund? Or is there a better way to mix these index funds together.
2. I've read that taxes matter. When I open a taxable account, is it best to fund it with only the VTSMX Vanguard Total Stock market and Total Internation VGTSX, and put the TBM (VBMFX) in my Roth IRA tax advantaged account?
3. What are the tax implications of keeping Vanguard Lifestrategy Growth (VASGX) in my taxable account versus splitting up the underlying indexes between taxable and tax advantaged accounts. Since the VASGX has the Total Bond Market, is it tax inefficient to have this fund in my taxable account?
I hope that these questions make sense. Thank you for bearing with me and I have much to learn from you all.