passionit wrote:Please comment on the 401 distribution i have and suggest if it is good or do i need to make any adjustment. I am 40 years old. Company matches 50% up to 6%. At present i am contributing 7% income. . . . .
Its great to see that you are contributing enough to get the full employer match.
You are fortunate to have some very nice funds to choose from in your 401k.
You have not stated what your desired assset allocation might be, so I can't say if you are hitting the mix you intend.Per Morningstar "Instant X-ray", your current 401k portfolio is:
66 equity/33 fixed,
with 51% of total equities in international, at an expense ratio of 0.53%.
US Stocks 32%
Int'l Stocks 34%
Equity Style box is:
high credit quality
In my opinion, the above asset allocation is within the range of what is reasonable for a 40 year old person, even though I personally think the international part is a bit high. I would rather see international in the range of 20 - 40% of total stocks, but I wouln't try to talk anyone out of a 50/50 split if thats what they want.
has already said, "If you're going to use a Target Retirement fund, using other funds in conjunction with other funds kind of defeats the purpose of it." A primary benefit of using a TR fund is its set-it-and-forget-it simplicity when used alone as a one fund portfolio. When you add in other funds you defeat that purpose and lose that intended benefit, all you do is make it more difficult to keep track of exactly what you have, and hard to adhere to your intended asset allocation.Using different funds in your 401k, you could get an almost identical portfolio at much lower cost
, like this:
34%, VANGRD FTSE ALLWLD US IDX INST VFWSX .12%
33%, VNGRD TOT STK MKT IND SIGNAL VTSSX .06%
33%, VNGRD TTL BND MRKT IDX SIGNAL VBTSX .10%,
which would give you an overall expense ratio of just 0.09%
, a meaningful improvement over your current expense ratio of 0.53%. And it will always be easy for you to keep track of what you have in terms of stocks, bonds and international.
I hope that this helps.