401k Getting a bit more diversity

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briang
Posts: 6
Joined: Wed Feb 24, 2010 2:11 pm

401k Getting a bit more diversity

Post by briang » Wed Dec 06, 2017 11:51 am

Hello-

Currently in my 401k I have 70% in VIIIX Vanguard Institutional Index Fund;Inst Plus (Large Cap) & 30% in VBITX Vanguard Short-Term Bond Index Fund;Institutional. I'm thinking I should have more than just large cap stocks for the stock portion. The following are my options that I could add:

VSCIX Vanguard Small-Cap Index Fund;Institutional
VTSNX Vanguard Total International Stock Index Fund;Inst
VBTIX Vanguard Mid-Cap Index Fund;Institutional Plus

My thoughts in regards to the stock choices are to have 33% large cap, 33% small cap, 33% mid cap. Does this sound correct? Any help in getting a good mix with my stock/bond choices would be greatly appreciated.

Spirit Rider
Posts: 6626
Joined: Fri Mar 02, 2007 2:39 pm

Re: 401k Getting a bit more diversity

Post by Spirit Rider » Wed Dec 06, 2017 12:09 pm

briang wrote:
Wed Dec 06, 2017 11:51 am
My thoughts in regards to the stock choices are to have 33% large cap, 33% small cap, 33% mid cap. Does this sound correct? Any help in getting a good mix with my stock/bond choices would be greatly appreciated.
80% VIIIX Vanguard Institutional Index Fund;Inst Plus
05% VSCIX Vanguard Mid-Cap Index Fund;Institutional
15% VBTIX Vanguard Small-Cap Index Fund;Institutional Plus

Is a better approximation in round numbers of the U.S. Total Stock market.

Then when you have decided your U.S., International and bond allocation just multiply the allocations by the individual funds. E.g. 60:20:20 would be

48% VIIIX Vanguard Institutional Index Fund;Inst Plus
03% VSCIX Vanguard Mid-Cap Index Fund;Institutional
09% VBTIX Vanguard Small-Cap Index Fund;Institutional Plus

20% VTSNX Vanguard Total International Stock Index Fund;Inst

20% VBITX Vanguard Short-Term Bond Index Fund;Institutional.

pkcrafter
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Location: CA
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Re: 401k Getting a bit more diversity

Post by pkcrafter » Wed Dec 06, 2017 1:28 pm

Spirit Rider is correct, and here's Wiki information on approximating TSM

https://www.bogleheads.org/wiki/Approxi ... ock_market


Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

rkhusky
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Joined: Thu Aug 18, 2011 8:09 pm

Re: 401k Getting a bit more diversity

Post by rkhusky » Wed Dec 06, 2017 4:38 pm

For US, I would just go 80/20 with Large/Small for simplicity (both Large and Small have some mid-caps in them in anyway). In fact, you could just go Large and not miss out on much. Adding Int'l would give more diversity, than adding Small, if you just wanted to add one additional fund.

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