Old Job: Vanguard Total International Stock Index Institutional (VTSNX) (0.12%) (5% turnover)
YTD 1yr 3Yr 5Yr 10yr
-2.98 -1.98 8.50 4.68 6.28
New Job: American Funds Europacific Growth R6 (RERGX) (0.49%) (28% turnover)
YTD 1yr 3Yr 5Yr 10yr
-2.79 0.24 11.02 6.02 8.09
International is 20% of our total asset allocation. Of that, VTSNX currently holds about 80%, with the other 20% in VTIAX, taxable account. For my job, I have Thrift Savings Plan, but never been a big fan of the I Fund. My current IPS and finances don’t allow for increased contributions to VTIAX in taxable to keep up with AA, so that’s not really an option either. I’m considering keeping her old 401k with VTSNX since it has a much lower expense ratio, and making future contributions to her new 401k with RERGX to maintain AA. I tend to lean toward Boglehead philosophy for lower expenses over performance: Better Performance vs. Lower Expense Ratio & Turnover? However, I’m also the type that likes to set it and leave it, and don’t like the idea of maintaining multiple accounts if I don’t have too. Also to consider are maintenance fees that the old account incurs, roughly 0.02% annually. I’m considering either:
-Keep old 401k with VTSNX and make future contributions to new 401k with RERGX
- Pros: Lower expenses while maintaining asset allocation
- Cons: Additional account to manage and mediocre performance
- Pros: Consolidation with potentially better performance
- Cons: Higher expenses