VIIIX vs other stock fund for employer retirement plan

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VIIIX vs other stock fund for employer retirement plan

Post by InvestDoc » Sat Jan 13, 2018 1:13 am

I am currently investing in the Vanguard Institutional Target Retirement 2045 Fund (VITLX) through my employer retirement plan, and was thinking about increasing my percentage of stocks by investing directly in something like the Vanguard Total Stock Market Index since the VITLX only puts ~54% into this fund (VITLX is overall 90% stocks with 36% in Total International Stock Index Fund). However, my employer doesn't allow investing in the total stock market fund. They do allow the Vanguard Institutional Index Fund Institutional Plus Shares (VIIIX), Vanguard Mid-Cap Index Fund Institutional Shares (VMCIX) and Vanguard Small-Cap Index Fund Institutional Shares (VSCIX). Should I consider changing my retirement allocation for future investments to either the VIIIX or a combination of the three allowable funds, and if so is there a suggested allocation between the three? This is the bulk of my investments (I have ~$9000 invested in a few core stocks such as APPL, AMZN, NFLX, FB). I am young and looking to focus on stocks for now until later in my career, but since all the Target Retirement funds beyond 2045 have the same asset mix, I was trying to branch out from Target funds. Thank you!

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Re: VIIIX vs other stock fund for employer retirement plan

Post by PFInterest » Sat Jan 13, 2018 3:58 pm

why do you need >90% stocks (hint, you already are)?
if you want to be aggressive you can start leveraging your account...
yes just add institutional, midcap, or smallcap to your fancy.
on the wiki there is a page on how to approximate TSM.
i would get out of the indiv core stocks of yours.

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Re: VIIIX vs other stock fund for employer retirement plan

Post by ruralavalon » Sat Jan 13, 2018 4:40 pm

You are already 90% stocks. That's plenty. Adding more is a bad idea in my opinion.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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