401k funds expense ratio? [Portfolio help]

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NewEyeDoc
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Joined: Sat Nov 16, 2013 11:29 am

401k funds expense ratio? [Portfolio help]

Post by NewEyeDoc » Sat Nov 16, 2013 11:40 am

[Originally in 401k funds expense ratio?, moved into a stand-alone thread. --admin LadyGeek]

I'll be eligible for my employer's 401k starting next year, and they offer funds through ADP. The available funds to me seem relatively undesirable (higher load). I also saw another thread here regarding the ADP and higher loads due to added expenses. What options do I have? I am new to investing. I'll likely be in the 33% marginal tax bracket in a year or two.

It looks like this is what is available to me:
Invesco Stable Asset Fund (0.69%)
American Century Government Bond Fund - Investor Class (0.47%) CPTNX
Loomis Sayles Investment Grade Bond Fund - Class A (0.84%) LIGRX
Vanguard Total Bond Market Index Fund - Signal Class (0.10%) VBTSX
Fidelity Freedom Income Fund (0.51%) FFFAX
Fidelity Freedom 2010 Fund (0.62%) FFFCX
Fidelity Freedom 2015 Fund (0.66%) FFVFX
Fidelity Freedom 2020 Fund (0.69%) FFFDX
Fidelity Freedom 2025 Fund (0.73%) FFTWX
Fidelity Freedom 2030 Fund (0.79%) FFFEX
Fidelity Freedom 2035 Fund (0.81%) FFTHX
Fidelity Freedom 2040 Fund (0.81%) FFFFX
Fidelity Freedom 2045 Fund (0.82%) FFFGX
Fidelity Freedom 2050 Fund (0.82%) FFFHX
American Funds The Income Fund of America - Class R4 (0.64%) RIDEX
Nuveen Dividend Value Fund - Class I (0.90%) FAQIX
Franklin Rising Dividends Fund - Advisor Class (0.72%) FRDAX
SSgA S&P 500 Index Securities Lending Series Fund - Class VII (0.22%)
Prudential Jennison Growth Fund - Class Z (0.76%) PJFZX
American Century Mid Cap Value Fund - Investor Class (1.01%) ACMVX
American Century Heritage Fund - Investor Class (1.01%) TWHIX
AllianzGI NFJ Small-Cap Value Fund - Institutional Class (0.86%) PSVIX
Janus Triton Fund - Class T (0.95%) JATTX
Thornburg International Value Fund - Class R5 (0.99%) TIVRX
Cohen & Steers Realty Shares (1.0%) CSRSX

Thanks!

I added the ticker and the expense ratios as given to me as well. For demographics, I'm filing married. Age 31. We only have a low 5-figure investments in Roth IRAs and 403b from a prior job. These consist of basically 90% Vanguard index funds (VBAIX, and VINIX), and 10% BRK.B. Collectively we have about $200k in student debt with interest rates ranging from 3%-5.8%.
Last edited by NewEyeDoc on Sat Nov 16, 2013 6:25 pm, edited 1 time in total.

nwffdiver
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Re: 401k funds expense ratio? [Portfolio help]

Post by nwffdiver » Sat Nov 16, 2013 5:01 pm

I'll bump you up by saying if you add the expense ratios to the funds you will get more information.

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ruralavalon
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Re: 401k funds expense ratio? [Portfolio help]

Post by ruralavalon » Sat Nov 16, 2013 5:14 pm

Please see this for the additional information needed: "Asking Potfolio Questions" .

It does look like you probably have some nice choices to use in the 401k, such as:

Vanguard Total Bond Market Index Fund - Signal Class;
SSgA S&P 500 Index Securities Lending Series Fund - Class VII;

and perhaps some others.

But we need to know the tickers and the expense ratios for the funds offered in the 401k, and whether there are any other expenses charged to the participant, to be able to say.

Also need to know what other accounts and investments you have, if any.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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ruralavalon
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Re: 401k funds expense ratio? [Portfolio help]

Post by ruralavalon » Sun Nov 17, 2013 12:57 pm

What asset allocation do you want to target?

On the stock/bond mix please see: wiki, "Never bear too much or too little risk " ; and DMaley post & graph, " % Stocks vs Age" . At age 33, somewhere around 75% stocks/25% bonds would be fairly typical.

On the domestic/international mix please see: Vanguard, "Considerations for investing in non-U.S. equities" , suggests international stocks in the range of 20 - 40% of all stocks; and 2013 poll & discussion , median about 30%.

. . . . .

In your new 401k use the two funds (best diversification and lowest expenses) mentioned earlier:

SSgA S&P 500 Index Securities Lending Series Fund - Class VII (0.22%)
Vanguard Total Bond Market Index Fund - Signal Class (0.10%) VBTSX

Is there an employer match in the 401k? If so, how much do you have to contribute each year to get the full match? How much each year is the full match?

. . . . .

NewEyeDoc wrote:We only have a low 5-figure investments in Roth IRAs and 403b from a prior job. These consist of basically 90% Vanguard index funds (VBAIX, and VINIX), and 10% BRK.B.

What and how much in each account?

For further diversification, you might want to consider some Vanguard Total Stock Market Index Fund in the Roth IRAs instead of or in addition to what you have now.

. . . . .

NewEyeDoc wrote:Collectively we have about $200k in student debt with interest rates ranging from 3%-5.8%.

Can you list amounts and rates? Subsidized or non-subsidized?

How much (total for all accounts) do you expect to be able to contribute each year toward investing and debt payment annually in the next few years?

NewEyeDoc wrote:I'll likely be in the 33% marginal tax bracket in a year or two.

Expected marginal tax rate next year?

In general the investing priority that works well for many people most of the time is:

1. contribute to company plan (401k, 403b, etc.) enough to get the full employer match (its free money);
2. pay off higher interest debt;
3. contribute to Roth IRA or deductible traditional IRA (depending on personal circumstances and eligibility) up to maximum contribution limit of $5.5k/yr per person;
4. contribute to company plan for the rest of the maximum employee contribution limit of $17.5k/yr;
and then
4.taxable investing.
wiki, "Prioritizing investments"
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

NewEyeDoc
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Joined: Sat Nov 16, 2013 11:29 am

Re: 401k funds expense ratio? [Portfolio help]

Post by NewEyeDoc » Sun Nov 17, 2013 8:21 pm

ruralavalon wrote:What asset allocation do you want to target?

I'd probably like to do an 80 stock/20 bond ratio since I'm trying to catch up for years without any investing. Thanks for the references. I would like to add some vanguard international stock funds to the mix in my Roth for 2013, which I haven't invested yet.


In your new 401k use the two funds (best diversification and lowest expenses) mentioned earlier:

SSgA S&P 500 Index Securities Lending Series Fund - Class VII (0.22%)
Vanguard Total Bond Market Index Fund - Signal Class (0.10%) VBTSX

Is there an employer match in the 401k? If so, how much do you have to contribute each year to get the full match? How much each year is the full match?

The employer matches up to 3% of my salary, which I plan to max out.

What and how much in each account?
Currently, I believe I have about $20k in my 403b, which consists of VBAIX and VINIX, split 50%. My Roth has about $15k with nearly $10k in BRK.B, and the rest in an individual stocks of AT&T, JNJ, and IBM (random pickings from years ago).

I am trying to clean up my holdings, and create a game plan. I definitely need some bond holdings, which will slowly be added in 2014 to my 401k, and I might consider an international fund +/- REIT in my Roths.

NewEyeDoc wrote:Collectively we have about $200k in student debt with interest rates ranging from 3%-5.8%.

Can you list amounts and rates? Subsidized or non-subsidized?

These are all unsubsidized now. I have $30k at 5.8%, about $120k in 5%, and the rest in consolidated loans at 3.25%-4.75%. I am currently repaying the minimums on all of these, and supplementing down the 5.8% monthly as much as I can.

I'd expect to be able to contribute to the max 401k $17.5k limit annually plus Roth IRA's for my spouse and I ($11k). The biggest question was how I should divide up repaying the loans vs. investing in taxable accounts. Practically speaking, I expect to go after the loans first while I am trying to figure out how to structure my portfolio.

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