New Employer New 401K

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beachbum5011
Posts: 18
Joined: Thu Apr 06, 2017 8:26 am

New Employer New 401K

Post by beachbum5011 » Sat Jan 13, 2018 11:51 am

Looking for some help. I just transitioned in a new job at 32 years old (new 401K) plan and wanted to get everyone’s opinion on what to do. The new company does not match until I am working for 1 year and then they kick in 4.5% up to 6%. They also have a discounted company contribution stock plan account you can buy into(max of 25k) per year but the enrollment period isn’t until June timeframe.

At this point with the low ER (.06%) my default is set at Wells Fargo target 2050 CIT Class 3 blend. What do others suggest?? I was also thinking of rolling over my existing 401K plan as well, if allowed. My last company had lackluster options with high ER’s.

<<I am contributing enough to hit the maximum allowable for 2018>>

Here are the 27 options and ER's I have available within my plan:

Aberdeen Emerging Market fund (stock) 1yr 30.24% ER 1.12%

American Funds EuroPacific Growth (stock) 1yr 31.17% ER .5%

Dodge & Cox Income Fund (bond) 1yr 4.73% ER .1511%

FIAM Small company (stock) 1yr 11.66% ER .63%

Northern Trust Treasury Inflation (bond) 1 yr 2.99% ER .0725%

PIMCO All asset Fund Inst (blend) 1 yr 13.98% ER 1.065%

State street global equity ex U.S. index (stock) 1 yr 27.40% ER .156%

United health group stable value fund (bond) 1yr 1.78% ER .38%

US Analyst Strategy (stock) 1yr 21.78% ER.35%

Vanguard Institutional Index (stock) 1yr 21.82% ER .02%

Vanguard Mid-cap index fund (stock) 1yr 19.28% ER .04%

Vanguard small cap index fund (stock) 1yr 16.27% ER .04%

Wellington mid cap opportunities (stock) 1 yr 24.68% ER .53%

Wells Fargo Target 2050 CIT Class E3 (Blend) 1yr 19.81% ER .06%


Thank you!

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The529guy
Posts: 610
Joined: Fri May 23, 2014 1:08 am

Re: New Employer New 401K

Post by The529guy » Sat Jan 13, 2018 12:03 pm

What's in the Wells Fargo target 2050 CIT Class 3 blend?

beachbum5011
Posts: 18
Joined: Thu Apr 06, 2017 8:26 am

Re: New Employer New 401K

Post by beachbum5011 » Sat Jan 13, 2018 12:56 pm

Cash- 7.13%
Domestic Bond 5.23%
Preferred stock .57%
Foreign bond 2.07%
Foreign stock 26.90%
others .45%
Domestic stock 57.64%

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ruralavalon
Posts: 13955
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: New Employer New 401K

Post by ruralavalon » Sat Jan 13, 2018 1:14 pm

The target date fund with an expense ratio of 0.06% looks like a good choice.

If you want individual funds and a custom asset allocation, then I suggest:
1) Vanguard Institutional Index Fund (a S&P 500 index fund), ER 0.04%;
2) State Street Global Equity EX-U.S. Index Fund, ER 0.156%; and
3) Dodge & Cox Income Fund, ER 0.1511%.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

beachbum5011
Posts: 18
Joined: Thu Apr 06, 2017 8:26 am

Re: New Employer New 401K

Post by beachbum5011 » Sat Jan 13, 2018 8:52 pm

Appreciate the feedback!

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