Please evaluate my 401(k) allocation and weighted Expense Ratio

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mark4269
Posts: 25
Joined: Mon Sep 11, 2017 10:45 am

Please evaluate my 401(k) allocation and weighted Expense Ratio

Post by mark4269 » Fri Apr 20, 2018 10:11 am

I work at a large corporation and have an okay but not great menu of options funding my 401(k). Below is my current contribution schedule to the funds comprising my account, along with their individual expense ratios, and then my weighted expense ratio.

FUND CONTRIBUTION (sums to 100%) EXPENSE RATIO
Russell Small Cap Index 30% 0.05%
Nasdaq 100 Index 30% 0.05%
International Index 15% 0.06%
Emerging Markets 15% 0.85%
Target Retirement 2050 10% 0.10%

So my contribution-weighted expense ratio for 401(k) is 0.18%.

Does this look reasonable for the next 3-5 years? I also have an IRA (Vanguard Total Stock Market Index) and taxable accounts. Mid-40s with about $500,000 net worth and no debt.

deltaneutral83
Posts: 847
Joined: Tue Mar 07, 2017 4:25 pm

Re: Please evaluate my 401(k) allocation and weighted Expense Ratio

Post by deltaneutral83 » Fri Apr 20, 2018 10:17 am

Too cluttered. Go with target funds or build it out yourself, but not both. You probably have an S&P fund for cheap. Pair that with the small caps to get a Total US. If you have bonds in your AA, that may be an option too.

ETadvisor
Posts: 228
Joined: Tue Jul 04, 2017 1:37 pm

Re: Please evaluate my 401(k) allocation and weighted Expense Ratio

Post by ETadvisor » Fri Apr 20, 2018 11:41 am

You may generate more responses if you provide all your 401k fund choices with ER. I would eliminate EM (due to high ER) & TR (some overlapping). Fill IRA with EM to equal AA. I would also include bonds in the 401k to equal 20% of your overall portfolio.
Last edited by ETadvisor on Fri Apr 20, 2018 11:44 am, edited 1 time in total.

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BL
Posts: 8290
Joined: Sun Mar 01, 2009 2:28 pm

Re: Please evaluate my 401(k) allocation and weighted Expense Ratio

Post by BL » Fri Apr 20, 2018 11:43 am

Also get your emerging market in your IRA or taxable if you really want it. You can balance over all accounts: select best ones available in 401k and fill in as needed at Vanguard.

To get better advice, list fund, ticker, and ER for each available fund in 401k.

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