401k options [Which funds to choose?]

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Houe
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401k options [Which funds to choose?]

Post by Houe » Wed Jun 29, 2016 9:30 am

Emergency funds: 3 months
Debt: 255k @ 3.75%
Tax Filing Status: Married Filing Jointly
Tax Rate: 25% Federal
State of Residence: Wisconsin
Age: 39, wife 31
Desired Asset allocation: not sure
Desired International allocation: not sure

Company 401k matches 3% when I contribute 6%. I have been contributing the 6% for the past 2 years. My money goes into a "Maximum Growth Model" (ER gross/net of 0.61/0.59) which splits up the contributions into a number of fund categories (see below). I'm looking to take more control of this account. Here are the available funds I have available:

Nuveen Real Estate Securities I (FARCX 1.05 / 1.05)
American Funds EuroPacific Gr R6 (RERGX 0.49 / 0.49)
Dodge & Cox International Stock (DODFX 0.64 / 0.64)
Columbia Small Cap Value II Z (NSVAX 1.08 / 1.08)
Vanguard Small Cap Growth Index Admiral (VSGAX 0.08 / 0.08)
Goldman Sachs Mid Cap Value Instl (GSMCX 0.75 / 0.75)
Nuveen Mid Cap Growth Opp I (FISGX 1.04 / 1.04)
Nuveen Mid Cap Index I (FIMEX 0.54 / 0.48)
Dodge & Cox Stock (DODGX 0.52 / 0.52)
Harbor Capital Appreciation Instl (HACAX 0.70 / 0.65)
Nuveen Equity Index I (FEIIX 0.46 / 0.37)
Vanguard Balanced Index Adm (VBIAX 0.08 / 0.08)
PIMCO Real Return Instl (PRRIX 0.50 / 0.45)
PIMCO Total Return Instl (PTTRX 0.46 / 0.46)
Wells Fargo Stable Return Fund (N/A 0.52 / 0.52)

I also can to contribute another 3% in a fidelity Roth account to help make a balanced portfolio if required. If not I will increase my contribution to this 401k plan. Which funds should I be looking at? Looking for recommendations before I change my AA. Thanks!

mhalley
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Re: 401k options [Which funds to choose?]

Post by mhalley » Wed Jun 29, 2016 5:41 pm

Vanguard balanced index: Boom, done. Might up the stock a little by adding some of the S&P index or if you want some international add dodfx. Most bogleheads recommend 20-40% of stocks to international but Bogle says no need.
I would consider upping your retirement contributions to 15-20%. 40 is around the time most people realize they need to buckle down as the future is getting closer.

Houe
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Re: 401k options [Which funds to choose?]

Post by Houe » Wed Jun 29, 2016 8:28 pm

I do already have some S&P 500 index in a fidelity account from a 401k rollover from my last job. If I place all my funds (from current 401k) into the Vanguard balanced index I'd be looking at a AA of:

31% in Fidelity® 500 Index Fund - Premium Class (FUSVX 0.07 / 0.05)
69% in Vanguard Balanced Index Adm (VBIAX 0.08 / 0.08)

However since I am contributing to the 401k the VBIAX will over time become a larger and larger percent.

And yes you are correct that I am now getting serious about retirement savings.

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ruralavalon
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Re: 401k options [Which funds to choose?]

Post by ruralavalon » Wed Jun 29, 2016 8:34 pm

In choosing funds strive for a combination of broad diversification(to decrease risk) and low expense ratio (to increase your net gain).

In your 401k, I would look at --
Vanguard Balanced Index Fund Admiral Shares (60% U.S. stocks, 40% bonds) (VBIAX) ER 0.08%
Nuveen Equity Index I (a S&P 500 index fund) (FEIIX) ER 0.36%
American Funds EuroPacific Growth R6 (both developed and emerging markets) (RERGX) ER 0.49%

Increase your contributions as much as you can.
"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 options [Which funds to choose?]

Post by ruralavalon » Wed Jun 29, 2016 8:42 pm

Houe wrote:I do already have some S&P 500 index in a fidelity account from a 401k rollover from my last job. If I place all my funds (from current 401k) into the Vanguard balanced index I'd be looking at a AA of:

31% in Fidelity® 500 Index Fund - Premium Class (FUSVX 0.07 / 0.05)
69% in Vanguard Balanced Index Adm (VBIAX 0.08 / 0.08)

However since I am contributing to the 401k the VBIAX will over time become a larger and larger percent.

And yes you are correct that I am now getting serious about retirement savings.
What asset allocation (stock/bond mix) will you want to shoot for? In my opinion in the area of 70/30 or 60/40 might be appropriate. Please see the wiki articles on "risk tolerance" and "asset allocation".

The decision on asset allocation is the first decision you need to make, before choosing funds.

Do you think that you want an investment in international stocks?

Do you have any other accounts or investments?
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

Houe
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Re: 401k options [Which funds to choose?]

Post by Houe » Wed Jun 29, 2016 9:13 pm

mhalley wrote:Vanguard balanced index: Boom, done. Might up the stock a little by adding some of the S&P index or if you want some international add dodfx. Most bogleheads recommend 20-40% of stocks to international but Bogle says no need.
I would consider upping your retirement contributions to 15-20%. 40 is around the time most people realize they need to buckle down as the future is getting closer.
I know I need to save more and am committed to doing so. Besides the 3% company match there was also a nice company profit sharing contribution made to my account. Overall I contributed 6% and the company contributed a 3% match and 5% profit sharing for a total of about 14%. I know I can't count on the profit sharing every year but it was nice this past year.

Houe
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Re: 401k options [Which funds to choose?]

Post by Houe » Wed Jun 29, 2016 9:17 pm

ruralavalon wrote:
Houe wrote:I do already have some S&P 500 index in a fidelity account from a 401k rollover from my last job. If I place all my funds (from current 401k) into the Vanguard balanced index I'd be looking at a AA of:

31% in Fidelity® 500 Index Fund - Premium Class (FUSVX 0.07 / 0.05)
69% in Vanguard Balanced Index Adm (VBIAX 0.08 / 0.08)

However since I am contributing to the 401k the VBIAX will over time become a larger and larger percent.

And yes you are correct that I am now getting serious about retirement savings.
What asset allocation (stock/bond mix) will you want to shoot for? In my opinion in the area of 70/30 or 60/40 might be appropriate. Please see the wiki articles on "risk tolerance" and "asset allocation".

The decision on asset allocation is the first decision you need to make, before choosing funds.

Do you think that you want an investment in international stocks?

Do you have any other accounts or investments?
I think I'd be comfortable with a 70/30 AA. I'm not particularly interested in international stocks (at least at this time). These are the only 2 accounts with any money in them right now. I do have another roth IRA with fidelity but it doesn't currently have money. I'm not sure if I should contribute just 6% to get company match and then put more in my roth or if I should just put it all in the 401k. I think that will depend on if you guys thing the fund options are good enough.

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BL
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Re: 401k options [Which funds to choose?]

Post by BL » Wed Jun 29, 2016 10:36 pm

I would figure out total portfolio for a specific point in time, such as end of year, and put 70% of that amount into the Balanced Index (60% stock/40% bonds so 42/28% of portfolio) and the rest (30% stock) into either total stock market or S&P 500, depending on what is available, and some low-ER total International, if desired. That would end up about 72/28, if I have it right. You would probably have mostly Balanced in 401k to start with, depending on how much you have in retirement portfolio elsewhere. If you are + or - 5%, that is pretty close, and 10% range would be acceptable, at least for some time.

I might even put old 401k money into Total Stock Market and/or Total International and everything else into Balanced Fund for simplicity for a few years.

Put more into retirement funds so you will have something by retirement.
If you put an extra 10k into 401k, the tax savings of 2.5k+ could go into the Roth, for example.

Houe
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Re: 401k options [Which funds to choose?]

Post by Houe » Thu Jun 30, 2016 7:57 am

So for right now I can put everything in my 401k into VBIAX and leave my rollover IRA in S&P500 and be in the ballpark of the 70/30 AA. The question I have going forward is this: is VBIAX the only worth while fund in my 401k? So any additional contribution (above the 6% for match) should go to my roth where I can choose from a lot of funds or should I put more into my 401k in the other available funds? At this point I have plenty of room in tax advantaged accounts. Maintaining a balanced AA across 2-3 accounts is a little more work but doable I suppose.

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BL
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Re: 401k options [Which funds to choose?]

Post by BL » Thu Jun 30, 2016 8:15 am

Houe wrote:So for right now I can put everything in my 401k into VBIAX and leave my rollover IRA in S&P500 and be in the ballpark of the 70/30 AA. The question I have going forward is this: is VBIAX the only worth while fund in my 401k? So any additional contribution (above the 6% for match) should go to my roth where I can choose from a lot of funds or should I put more into my 401k in the other available funds? At this point I have plenty of room in tax advantaged accounts. Maintaining a balanced AA across 2-3 accounts is a little more work but doable I suppose.
Ruralavalon above has suggested the best choices if you wish to do the AA separately there. That would work fine in the future.

goingup
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Re: 401k options [Which funds to choose?]

Post by goingup » Thu Jun 30, 2016 10:20 am

Houe wrote:So for right now I can put everything in my 401k into VBIAX and leave my rollover IRA in S&P500 and be in the ballpark of the 70/30 AA.
It's an elegant solution. Don't fall into the trap of thinking you need a bunch of funds to be diversified.

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ruralavalon
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Re: 401k options [Which funds to choose?]

Post by ruralavalon » Thu Jun 30, 2016 11:24 am

Houe wrote:So for right now I can put everything in my 401k into VBIAX and leave my rollover IRA in S&P500 and be in the ballpark of the 70/30 AA.
Yes put all of the 401k in Vanguard Balanced Index Fund (VBIAX). VBINX is 40% bonds, the 401k is 69% of the total portfolio, so 69% x .4 = 28% of total portfolio in bonds. That's close enough to your target of 30%.
Houe wrote: The question I have going forward is this: is VBIAX the only worth while fund in my 401k?
For future reference, other worthwhile funds offered in the 401k include --
Nuveen Equity Index I (a S&P 500 index fund) (FEIIX) ER 0.37%
American Funds EuroPacific Growth R6 (RERGX) ER 0.49%

But you can buy better funds in your Roth IRA at Fidelity, with lower expense ratios. Stick to Fidelity Index Funds for broad diversification and low expense ratios.
Houe wrote:So any additional contribution (above the 6% for match) should go to my roth where I can choose from a lot of funds or should I put more into my 401k in the other available funds?
Yes, contribute to your Roth IRA at Fidelity after making sure you get the full employer match in the 401k.

The general investing priority that usually works better is--
1) contribute enough to the 401k to get the full employer match each year,
2) contribute the maximum $5.5k/yr to an IRA,
3) contribute the rest of the maximum employee contribution to the 401k.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

Houe
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Re: 401k options [Which funds to choose?]

Post by Houe » Thu Jun 30, 2016 1:00 pm

Thanks for the advice. Seems to make sense to me.

Houe
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Help choose 401k funds (new options added)

Post by Houe » Tue Nov 22, 2016 4:31 pm

[Thread merged into here --admin LadyGeek]

My employer updated their 401k now with the following options:

Nuveen Real Estate Securities I, FARCX (1.05/1.05)
American Funds EuroPacific Gr R6, RERGX (0.50/0.50)
Dodge & Cox International Stock, DODFX (0.64/0.64)
Columbia Small Cap Value II Z, NSVAX (1.02/1.02)
Vanguard Small Cap Growth Index Admiral, VSGAX (0.08/0.08)
Goldman Sachs Mid Cap Value Instl, GSMCX (0.75 / 0.75)
Nuveen Mid Cap Growth Opp I, FISGX (0.94 / 0.91)
Vanguard Mid Cap Index Fund - Admiral, VIMAX (0.08 / 0.08)
Dodge & Cox Stock, DODGX (0.52 / 0.52)
Harbor Capital Appreciation Instl, HACAX (0.70 / 0.65)
Vanguard 500 Index Admiral, VFIAX ( 0.05 / 0.05)
Vanguard Balanced Index Adm, VBIAX (0.08 / 0.08)
PIMCO Real Return Instl, PRRIX (0.58 / 0.45)
PIMCO Total Return Instl, PTTRX (0.47 / 0.46)
Wells Fargo Stable Return Fund Q ( 0.52 / 0.52)
Guaranteed Interest Fund (returns 1.35%)

I'm 40 and my wife is 32.
mortgage ~250k at 3.75% (house is worth ~285k)
no other debt - no credit card debt, no car debt, etc.
emergency fund: 4 months

desired allocation 80% stocks, 20% bonds (seems reasonable - not sure?)
no international stocks at this time
401k match: company puts in 3% if I put in 6% of my money

What percent should I put in the available funds? Not sure how to fill out the forms. Thanks!

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Duckie
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Re: Help choose 401k funds (new options added)

Post by Duckie » Tue Nov 22, 2016 8:18 pm

Houe wrote:My employer updated their 401k now with the following options:
The best options are:
  • Vanguard 500 Index Admiral, VFIAX (0.05) -- Large caps, 80% of US stocks
  • Vanguard Mid Cap Index Fund - Admiral, VIMAX (0.08) -- Mid caps, 6% of US stocks
  • Vanguard Small Cap Growth Index Admiral, VSGAX (0.08) -- Small caps, 14% of US stocks
  • American Funds EuroPacific Gr R6, RERGX (0.50) -- Decent international fund
  • PIMCO Total Return Instl, PTTRX (0.46) -- US bonds
  • Vanguard Balanced Index Adm, VBIAX (0.08) -- 60% US stocks, 40% US bonds
  • and maybe Wells Fargo Stable Return Fund Q depending on its interest rate
desired allocation 80% stocks, 20% bonds (seems reasonable - not sure?)
20% bonds is low for age 40
no international stocks at this time
If you really want no international stocks and an 80/20 AA then there are three easy ways to do it:
  1. 80% Vanguard 500 Index and 20% PIMCO Total Return
  2. 65% Vanguard 500 Index, 15% Vanguard Small Cap, and 20% PIMCO Total Return
  3. 50% Vanguard 500 Index and 50% Vanguard Balanced Index
Option 3 is the cheapest.

Houe
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Re: Help choose 401k funds (new options added)

Post by Houe » Wed Nov 23, 2016 9:17 am

In regards to the bonds being low... considering my wife is 8 years younger than me do I change this or invest based on my age only? We are both working, but I make about 2/3 our income and she makes 1/3 our income.

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BL
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Re: Help choose 401k funds (new options added)

Post by BL » Wed Nov 23, 2016 10:29 am

Do you have Roth or other IRAs?
I was thinking you could do the Balanced Fund in 401k and Total stock market in Roth.

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ruralavalon
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Re: Help choose 401k funds (new options added)

Post by ruralavalon » Wed Nov 23, 2016 11:46 am

Houe wrote:In regards to the bonds being low... considering my wife is 8 years younger than me do I change this or invest based on my age only? We are both working, but I make about 2/3 our income and she makes 1/3 our income.
In considering asset allocation I would just use your average age of 36. I would suggest around 25 - 30% in bonds.

Do you have other accounts like IRAs? Does your spouse have a 401k or other work-based account? It's usually best to look at all accounts together as a single unified portfolio, rather than considering each account separately.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

Houe
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Re: 401k options [Which funds to choose?]

Post by Houe » Thu Jan 11, 2018 12:58 pm

An update and a new question....

As of now our portfolio across a number of accounts is:

Fidelity® U.S. Bond Index Fund - Investor Class (FBIDX) 4.57%
Fidelity® 500 Index Fund - Premium Class (FUSVX) 43.99%
Fidelity® 500 Index Fund - Investor Class (FUSEX) 2.49%
Fidelity® Total Market Index Fund - Premium Class (FSTVX) 10.42%
ISHARES CORE S&P TOTAL US STOCK MARKET ETF (ITOT) 0.93%
Vanguard Small Cap Growth Index Admiral (VSGAX) 3.72%
Vanguard Mid Cap Index Fund - Admiral (VIMAX) 1.13%
Vanguard 500 Index Admiral (VFIAX) 18.97%
Vanguard Balanced Index Adm (VBIAX) 13.79%

And if my excel math is correct that produces 89.9% stocks /10.1% bonds with an overall expense ratio of 0.0485%. So expense ratio looks pretty good, but the allocation is still not at the desired ratio.

When I began (I started this thread 1.5 yrs ago) restructuring our retirement portfolio we were 100% stocks. As of now we have moved to 89.9% stocks / 10.1% bonds. I am currently slowly transitioning to our desired allocation (75/25) with new contributions. However at this rate the transition is probably going to take 2-3 more years. By then we might actually want to be 70/30 which leads me to my question: How fast do you transition your allocations? Do you just do it in one day or do you slowly transition over months or years?

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ruralavalon
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Re: 401k options [Which funds to choose?]

Post by ruralavalon » Thu Jan 11, 2018 2:01 pm

Houe wrote:
Thu Jan 11, 2018 12:58 pm
An update and a new question....

As of now our portfolio across a number of accounts is:

Fidelity® U.S. Bond Index Fund - Investor Class (FBIDX) 4.57%
Fidelity® 500 Index Fund - Premium Class (FUSVX) 43.99%
Fidelity® 500 Index Fund - Investor Class (FUSEX) 2.49%
Fidelity® Total Market Index Fund - Premium Class (FSTVX) 10.42%
ISHARES CORE S&P TOTAL US STOCK MARKET ETF (ITOT) 0.93%
Vanguard Small Cap Growth Index Admiral (VSGAX) 3.72%
Vanguard Mid Cap Index Fund - Admiral (VIMAX) 1.13%
Vanguard 500 Index Admiral (VFIAX) 18.97%
Vanguard Balanced Index Adm (VBIAX) 13.79%

And if my excel math is correct that produces 89.9% stocks /10.1% bonds with an overall expense ratio of 0.0485%. So expense ratio looks pretty good, but the allocation is still not at the desired ratio.

When I began (I started this thread 1.5 yrs ago) restructuring our retirement portfolio we were 100% stocks. As of now we have moved to 89.9% stocks / 10.1% bonds. I am currently slowly transitioning to our desired allocation (75/25) with new contributions. However at this rate the transition is probably going to take 2-3 more years. By then we might actually want to be 70/30 which leads me to my question: How fast do you transition your allocations? Do you just do it in one day or do you slowly transition over months or years?
The overall expense ratio looks great.

Can you list the accounts and the amount in each account, and under each account the list the funds used in it and the amounts? Please see the post "asking portfolio questions" for format.

That makes it easier to see how you might best transition to the desired asset allocation.

In general, when you have decided on the desired asset allocation just switch all at once, unless there is some tax consequence. Why stay with an allocation that you no longer want?
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

WhiteMaxima
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Re: 401k options [Which funds to choose?]

Post by WhiteMaxima » Thu Jan 11, 2018 2:04 pm

vanguard balanced is probably you only need. The AA is 30/30/40 US/Intl/Bond. It is a little bit conservative. Long term projected return is 5% which will beat inflation of 2%.

Houe
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Re: 401k options [Which funds to choose?]

Post by Houe » Fri Jan 12, 2018 9:33 am

Here is the breakdown of where each asset is located:

Her Fidelity Rollover IRA (90.6% stocks/9.4% bonds)
4.57%, Fidelity® U.S. Bond Index Fund - Investor Class, FBIDX, 0.14%
43.99%, Fidelity® 500 Index Fund - Premium Class, FUSVX, 0.035%

Her Fidelity Roth IRA (100% stocks/0% bonds)
2.49%, Fidelity® 500 Index Fund - Investor Class, FUSEX, 0.09%

His Fidelity Rollover IRA (100% stocks/0% bonds)
10.42%, Fidelity® Total Market Index Fund - Premium Class, FSTVX, 0.035%

His Fidelity Roth IRA (100% stocks/0% bonds)
0.93%, ISHARES CORE S&P TOTAL US STOCK MARKET ETF, ITOT, 0.03%

His Empower Retirement 401k (85% stocks/15% bonds)
3.72%, Vanguard Small Cap Growth Index Admiral, VSGAX, 0.07%
1.13%, Vanguard Mid Cap Index Fund - Admiral, VIMAX, 0.06%
18.97%, Vanguard 500 Index Admiral, VFIAX, 0.04%
13.79%, Vanguard Balanced Index Adm, VBIAX, 0.07%

Last year I was only able to contribute about 15% of my salary to retirement which includes the company match. We had a number of medical bills due to pregnancy complications and my wife no longer works and stays home with our new born son. Nevertheless this year should be a nice improvement in retirement savings - I'm hoping for 20%. I received a raise and any tax savings I see in Feb will be directed to investments. Now where best to increase bond holdings....

The only bond funds I have in my (his 401k) have rather expensive:
PIMCO Real Return Instl, PRRIX, 0.64%
PIMCO Total Return Instl, PTTRX, 0.51%

So probably the best location to add bond funds would be her rollover IRA. Selling some Fidelity® 500 Index Fund - Premium Class and
increasing the amount in bonds would allow moving to the lower cost premium class fund:

from: Fidelity® U.S. Bond Index Fund - Investor Class, FBIDX, 0.14%
to: Fidelity® U.S. Bond Index Fund - Premium Class FSITX 0.045%

Then going forward I would purchase the correct amount of Vanguard Balanced Index Adm in my 401k to maintain the stock/bond ratio.

My accounts are pretty close to the total stock market. My 401k is approximating based on bogleheads wiki "Approximating_total_stock_market" with a 85/15 and my fidelity accounts are in total stock market funds/ETFs. I have never really changed my wife's from s&p500 to total stock market. I think I need to do a better job of managing the entire portfolio as a single entity.

Is this too complicated? And should it be done over time or just do it now?

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ruralavalon
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Re: 401k options [Which funds to choose?]

Post by ruralavalon » Fri Jan 12, 2018 10:56 am

Houe wrote:
Fri Jan 12, 2018 9:33 am
The only bond funds I have in my (his 401k) have rather expensive:
PIMCO Real Return Instl, PRRIX, 0.64%
PIMCO Total Return Instl, PTTRX, 0.51%
Actually PIMCO Total Return Institutional (PTTRX) ER 0.51% is a good actively managed intermediate-term bond fund, which could be used. However my preference would be a good intermediate-term bond index fund.
Houe wrote:So probably the best location to add bond funds would be her rollover IRA. Selling some Fidelity® 500 Index Fund - Premium Class and
increasing the amount in bonds would allow moving to the lower cost premium class fund:

from: Fidelity® U.S. Bond Index Fund - Investor Class, FBIDX, 0.14%
to: Fidelity® U.S. Bond Index Fund - Premium Class FSITX 0.045%
I think you are right that the place to buy more bonds is in her rollover IRA using Fidelity U.S. Bond Index Fund.

Houe wrote:Then going forward I would purchase the correct amount of Vanguard Balanced Index Adm in my 401k to maintain the stock/bond ratio.

My accounts are pretty close to the total stock market. My 401k is approximating based on bogleheads wiki "Approximating_total_stock_market" with a 85/15 and my fidelity accounts are in total stock market funds/ETFs. I have never really changed my wife's from s&p500 to total stock market. I think I need to do a better job of managing the entire portfolio as a single entity.

Is this too complicated? And should it be done over time or just do it now?
That is more complicated than necessary in my opinion.

For bonds you can simply use Fidelity U.S. Bond Index Fund in her rollover IRA, there is no need to use Vanguard Balanced Index Fund in his 401k for any part of the bond allocation.

I prefer a total stock market index fund when available; otherwise a S&P 500 index fund is good enough for domestic stocks. A S&P 500 index fund covers 81% of the total stock market, and in the 25 years since the creation of the first total stock market index fund the two types of fund have had almost identical performance.

. . . . .


You indicate that you want a 75/25 asset allocation. Here is a simpler portfolio idea that you could consider.

Her Fidelity Rollover IRA (49% of total)
25%, Fidelity® U.S. Bond Index Fund - Premium Class, FSITX, 0.14%
24%, Fidelity® Total Market Index Fund - Premium Class, FSTVX, 0.035%

Her Fidelity Roth IRA (2% of total)
02%, Fidelity® Total Market Index Fund - Investor Class, FSTMX, 0.09%

His Fidelity Rollover IRA (10% of total)
10%, Fidelity® Total Market Index Fund - Premium Class, FSTVX, 0.035%

His Fidelity Roth IRA (1% of total)
01%, ISHARES CORE S&P TOTAL US STOCK MARKET ETF, ITOT, 0.03%

His Empower Retirement 401k (38% of total)
38%, Vanguard 500 Index Admiral, VFIAX, 0.04%

. . . . .

Once you decide on an asset allocation and funds to use, I suggest that you switch over to the new allocation all at once. I see no benefit in stringing out the process.

. . . . .


To rebalance when needed you can simply exchange between funds inside her rollover IRA.

I hope that this helps.

If you have any questions just ask.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

Houe
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Re: 401k options [Which funds to choose?]

Post by Houe » Fri Jan 12, 2018 4:40 pm

ruralavalon wrote:
Fri Jan 12, 2018 10:56 am
To rebalance when needed you can simply exchange between funds inside her rollover IRA.

I hope that this helps.

If you have any questions just ask.
Thanks for looking over my portfolio - much appreciated.

That should work for a few years until the rebalance would drop the fund from premium's $10k minimum. At that add bonds elsewhere would be cheaper.

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