401k funds please help me chose.

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lepa71
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401k funds please help me chose.

Post by lepa71 » Wed May 09, 2018 2:59 pm

My company now has a 401k plan. There are not that many low ER funds and I need help making a selection. Please help.

Image

I can do different funds for Trad 401k vs Roth 401k.
I was looking at those in green.

Thanks
Last edited by lepa71 on Wed May 23, 2018 8:20 am, edited 2 times in total.

retiredjg
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Re: 401k funds please help me chose.

Post by retiredjg » Wed May 09, 2018 3:01 pm

You have picked the best funds already. There should be little to no need for a money market fund in a work plan.

The Dodge and Cox International will do if you can't hold your international stock (assuming you want any) in another account.

SelfEmployed123
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Re: 401k funds please help me chose.

Post by SelfEmployed123 » Wed May 09, 2018 3:03 pm

I'd recommend FUSVX as your primary holding for stocks and FSITX as your primary holding for bonds. I don't see a good international stock index fund there, so you may want to invest in one through an IRA. You will likely have more choices in your own IRA and will likely be able to find an international stock index fund with a lower ER. No need to invest in a money market fund in your retirement account.
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Meg77
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Re: 401k funds please help me chose.

Post by Meg77 » Wed May 09, 2018 3:05 pm

The three funds highlighted in green are all you need.

I'd put 100% into the S&P 500 index - that's what I do personally in my 401k and so does my husband. It's simple and the cheapest option. We use IRAs and brokerage to invest in international and bonds. But really depending on your age and total asset level, 100% in the S&P 500 index may be just fine.
"An investment in knowledge pays the best interest." - Benjamin Franklin

lepa71
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Re: 401k funds please help me chose.

Post by lepa71 » Fri May 11, 2018 9:20 am

retiredjg wrote:
Wed May 09, 2018 3:01 pm
You have picked the best funds already. There should be little to no need for a money market fund in a work plan.

The Dodge and Cox International will do if you can't hold your international stock (assuming you want any) in another account.
I do have VWIGX Vanguard International Growth Fund Investor Shares in my tIRA and in the after-tax brokerage account.

The only reason I was showing FD money market in yellow is that to show how expensive it is. It loses money almost always. Well, actually all of them are so expensive except the once in green.

How do I work with the company to ask them to get cheaper index funds?

lepa71
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Re: 401k funds please help me chose.

Post by lepa71 » Fri May 11, 2018 9:24 am

Meg77 wrote:
Wed May 09, 2018 3:05 pm
The three funds highlighted in green are all you need.

I'd put 100% into the S&P 500 index - that's what I do personally in my 401k and so does my husband. It's simple and the cheapest option. We use IRAs and brokerage to invest in international and bonds. But really depending on your age and total asset level, 100% in the S&P 500 index may be just fine.
I actually like mid-cap right now more. The question is how should I split FSEVX vs FUSVX?

I'm looking right at 70/30 stock/bond at age 46.

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ruralavalon
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Re: 401k funds please help me chose.

Post by ruralavalon » Fri May 11, 2018 10:30 am

lepa71 wrote:
Fri May 11, 2018 9:24 am
Meg77 wrote:
Wed May 09, 2018 3:05 pm
The three funds highlighted in green are all you need.

I'd put 100% into the S&P 500 index - that's what I do personally in my 401k and so does my husband. It's simple and the cheapest option. We use IRAs and brokerage to invest in international and bonds. But really depending on your age and total asset level, 100% in the S&P 500 index may be just fine.
I actually like mid-cap right now more. The question is how should I split FSEVX vs FUSVX?

I'm looking right at 70/30 stock/bond at age 46.
In my opinion a 70/30 stock/bond asset allocation is a bit aggressive but still with the range of what is reasonable at age 49.

In my opinion Fidelity 500 Index Fund Premium Class (FUSVX) is good enough by itself for Investing in U.S. stocks. It covers 81% of the U.S. stock market, investing in stocks of selected large-cap and mid-cap U.S. companies. In the 26 years since the creation of the first total stock market index fund the two types of fund have had almost identical performance. Historically adding stocks of small-cap and more mid-cap U.S. companies has had little impact on returns.

If you want to add extended market, then an 81/19 mix of S&P 500 to extended market will mimic the content of a total stock market index fund.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

lepa71
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Re: 401k funds please help me chose.

Post by lepa71 » Mon May 14, 2018 2:31 pm

Why do you think 70/30 is aggressive? Looks like VG 2035 is 78/22.

lepa71
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Re: 401k funds please help me chose.

Post by lepa71 » Mon May 14, 2018 2:33 pm

Whom should I try to talk inside the company about different funds? Is my company get kick-back?

lepa71
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Re: 401k funds please help me chose.

Post by lepa71 » Tue May 22, 2018 8:16 pm

SO I finally rolled in into Fidelity 401k and I have more questions
Apparently, my company has Brokerage Link account, in addition, to funds on the list.
Question
1. Does it make sense to use it? All funds transfer between 401K and Brokerage Link account has to be done throw SPAXX.
2. Are there any other Fidelity funds I should do with Brokerage Link account?
3. Does anybody know if I can by Vanguard ETF at Fidelity without paying fees?

Thanks

retiredjg
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Re: 401k funds please help me chose.

Post by retiredjg » Wed May 23, 2018 4:58 am

lepa71 wrote:
Tue May 22, 2018 8:16 pm
SO I finally rolled in into Fidelity 401k and I have more questions
Apparently, my company has Brokerage Link account, in addition, to funds on the list.
Question
1. Does it make sense to use it? All funds transfer between 401K and Brokerage Link account has to be done throw SPAXX.
Your list of funds is no longer shown in your first post. As I recall, you had several good funds to use which might mean you don't need to use the brokerage link, especially if there is an extra charge to use it.

lepa71
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Re: 401k funds please help me chose.

Post by lepa71 » Wed May 23, 2018 9:38 am

retiredjg wrote:
Wed May 23, 2018 4:58 am
lepa71 wrote:
Tue May 22, 2018 8:16 pm
SO I finally rolled in into Fidelity 401k and I have more questions
Apparently, my company has Brokerage Link account, in addition, to funds on the list.
Question
1. Does it make sense to use it? All funds transfer between 401K and Brokerage Link account has to be done throw SPAXX.
Your list of funds is no longer shown in your first post. As I recall, you had several good funds to use which might mean you don't need to use the brokerage link, especially if there is an extra charge to use it.
Could you confirm that image is now showing in the 1st post?

I do have Vanguard International Growth Fund Investor Shares (VWIGX) in my tIRA. I guess I could re-allocate it thereby moving from VIGAX.

Does it make sense to keep some cash reserve in SPAXX? Its ER is a little bit high at 0.42%

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ruralavalon
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Re: 401k funds please help me chose.

Post by ruralavalon » Wed May 23, 2018 10:20 am

lepa71 wrote:
Tue May 22, 2018 8:16 pm
SO I finally rolled in into Fidelity 401k and I have more questions
Apparently, my company has Brokerage Link account, in addition, to funds on the list.
Question
1. Does it make sense to use it? All funds transfer between 401K and Brokerage Link account has to be done throw SPAXX.
2. Are there any other Fidelity funds I should do with Brokerage Link account?
3. Does anybody know if I can by Vanguard ETF at Fidelity without paying fees?

Thanks
The image does now appear in your first post.

Is there any fee charged to use the BrokerageLink, either an annual fee or a per transaction fee?

Using the BrokerageLink can you buy any Fidelity fund?

In my opinion Fidelity funds to consider using through the BrokerageLink include:
Fidelity Total Stock Market Index Fund Premium Class (FSTVX); and
Fidelity Total International Stock Index Fund Premium Class (FTIPX).
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

ETadvisor
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Re: 401k funds please help me chose.

Post by ETadvisor » Wed May 23, 2018 10:29 am

lepa71 wrote:
Wed May 09, 2018 2:59 pm
My company now has a 401k plan. There are not that many low ER funds and I need help making a selection. Please help.

Image

I can do different funds for Trad 401k vs Roth 401k.
I was looking at those in green.

Thanks
You are fortunate to have this feature outlined above. My Mega Corp does not allow this and I am forced to hold bonds in the Roth 401k as a result. If you are sure you are able to place different funds in Trad 401k vs Roth 401K, I would hold all the bonds up to your AA in the Trad 401k and not the Roth 401k.

retiredjg
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Re: 401k funds please help me chose.

Post by retiredjg » Wed May 23, 2018 1:58 pm

There is no image for me. If you don't get the answer you are looking for, just type out the 3 or 4 funds you are considering.

I don't see any reason to hold money for retirement in money market for more than a day or so.

lepa71
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Re: 401k funds please help me chose.

Post by lepa71 » Wed May 23, 2018 2:41 pm

retiredjg wrote:
Wed May 23, 2018 1:58 pm
There is no image for me. If you don't get the answer you are looking for, just type out the 3 or 4 funds you are considering.

I don't see any reason to hold money for retirement in money market for more than a day or so.
Maybe you have ad blocker? I tried on another browser without login and it is there.

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ruralavalon
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Re: 401k funds please help me chose.

Post by ruralavalon » Wed May 23, 2018 5:10 pm

lepa71 wrote:
Wed May 23, 2018 2:41 pm
retiredjg wrote:
Wed May 23, 2018 1:58 pm
There is no image for me. If you don't get the answer you are looking for, just type out the 3 or 4 funds you are considering.

I don't see any reason to hold money for retirement in money market for more than a day or so.
Maybe you have ad blocker? I tried on another browser without login and it is there.
Oddly I could not initially see the fund table in the first post (either on my tablet or desk top), but now it is visible to me (on both).
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

retiredjg
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Re: 401k funds please help me chose.

Post by retiredjg » Wed May 23, 2018 5:20 pm

It's odd and I have no idea what the issue is. The message is the same.

Not everyone can see it. If you want comments from people who can't see it, type out those funds.

If you get an answer you are satisfied with, don't type out those funds.:happy

lepa71
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Re: 401k funds please help me chose.

Post by lepa71 » Wed May 23, 2018 9:42 pm

retiredjg wrote:
Wed May 23, 2018 5:20 pm
It's odd and I have no idea what the issue is. The message is the same.

Not everyone can see it. If you want comments from people who can't see it, type out those funds.

If you get an answer you are satisfied with, don't type out those funds.:happy
I had to change it from google photo to g-drive link.

lepa71
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Re: 401k funds please help me chose.

Post by lepa71 » Wed May 23, 2018 9:45 pm

ETadvisor wrote:
Wed May 23, 2018 10:29 am
lepa71 wrote:
Wed May 09, 2018 2:59 pm
My company now has a 401k plan. There are not that many low ER funds and I need help making a selection. Please help.

Image

I can do different funds for Trad 401k vs Roth 401k.
I was looking at those in green.

Thanks
You are fortunate to have this feature outlined above. My Mega Corp does not allow this and I am forced to hold bonds in the Roth 401k as a result. If you are sure you are able to place different funds in Trad 401k vs Roth 401K, I would hold all the bonds up to your AA in the Trad 401k and not the Roth 401k.
Why does it make a difference?

ExitStageLeft
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Re: 401k funds please help me chose.

Post by ExitStageLeft » Wed May 23, 2018 10:39 pm

If you can specify which funds go in your Roth 401k and which go in your traditional 401k, you can put the assets that you expect to have the highest return in your Roth portion. Those with the lowest anticipated returns go in the traditional portion. So if you have bonds in the traditional portion, the growth will be subject to taxes. For the stocks in your Roth portion, the growth will not be taxed. So if you keep the bonds in pre-tax you'll likely be reducing the amount of taxes you have to pay in the future, compared to if you had bonds evenly split between Roth and traditional.

lepa71
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Re: 401k funds please help me chose.

Post by lepa71 » Thu May 24, 2018 7:30 am

I'm looking back at my statement and I think I meant to say that I can split contributions between Trad 401k and Roth 401k. I don't see anywhere as to how I can dedicate specific funds to one vs another. I only have a percentage split between the two.

I think I'm going to start with those funds in the plan itself and look at BL later. I know I can put up to 90% of the money into BL. What I want to find out if I could do ETFs in BL with no charge. I was looking at iShare ETFs and see some potential to have a better portfolio. I would prefer VG ETFs but everywhere I looked people stating that Fidelity charges fees for VG ETF trades. The reason I'm looking at ETFs is that I like to concentrate on specific industries.

What do you guys think?

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ruralavalon
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Re: 401k funds please help me chose.

Post by ruralavalon » Thu May 24, 2018 9:00 am

lepa71 wrote:
Thu May 24, 2018 7:30 am
I'm looking back at my statement and I think I meant to say that I can split contributions between Trad 401k and Roth 401k. I don't see anywhere as to how I can dedicate specific funds to one vs another. I only have a percentage split between the two.

I think I'm going to start with those funds in the plan itself and look at BL later. I know I can put up to 90% of the money into BL. What I want to find out if I could do ETFs in BL with no charge. I was looking at iShare ETFs and see some potential to have a better portfolio. I would prefer VG ETFs but everywhere I looked people stating that Fidelity charges fees for VG ETF trades. The reason I'm looking at ETFs is that I like to concentrate on specific industries.

What do you guys think?
If you can use any Fidelity fund through the BrokerageLink without extra fees, then there is no need to bother with ETFs.

I suggest choosing funds to simulate the very well diversified, low expense ratio "three-fund portfolio". Wiki article "Three-fund portfolio". Forum discussion, "The Three-Fund Portfolio".

For example you could use this fund from the regular 401k menu --
1) Fidelity U.S. Bond Index Fund Premium Class (FSITX) ER 0.05%,

and you could use these two funds through the BrokerageLink,
2) Fidelity Total Stock Market Index Fund Premium Class (FSTVX) ER 0.035%; and
3) Fidelity Total International Stock Index Fund Premium Class (FTIPX) ER 0.10%.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

lepa71
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Re: 401k funds please help me chose.

Post by lepa71 » Thu May 24, 2018 9:39 am

I have to find out how do they treat BL for Roth 401k vs Trad 401K. I can only define a percentage of contribution to go into trad. 401k vs Roth 401k.
For example. Salary is $100K. Want to contribute 18%-$18K. I can split 18% with 10% into Trad 401k and 8% into Roth 401K. I don't know how they track what money goes where. I hope I make sense.

I understand there is a desire to invest in FSTVX, but the mix of S&P 500 FUSVX and the extended market FSEVX will mimic the content of a total stock market index fund. Right? If this is right then why would I need to go to BL? I can allocate more International in my VG tIRA as I already have it there.

My initial rollover of $300K will go into this Trad 401K than contributions will flow in. I'm still interested in iShare ETF opinions.

Thank you.
ruralavalon wrote:
Thu May 24, 2018 9:00 am
lepa71 wrote:
Thu May 24, 2018 7:30 am
I'm looking back at my statement and I think I meant to say that I can split contributions between Trad 401k and Roth 401k. I don't see anywhere as to how I can dedicate specific funds to one vs another. I only have a percentage split between the two.

I think I'm going to start with those funds in the plan itself and look at BL later. I know I can put up to 90% of the money into BL. What I want to find out if I could do ETFs in BL with no charge. I was looking at iShare ETFs and see some potential to have a better portfolio. I would prefer VG ETFs but everywhere I looked people stating that Fidelity charges fees for VG ETF trades. The reason I'm looking at ETFs is that I like to concentrate on specific industries.

What do you guys think?
If you can use any Fidelity fund through the BrokerageLink without extra fees, then there is no need to bother with ETFs.

I suggest choosing funds to simulate the very well diversified, low expense ratio "three-fund portfolio". Wiki article "Three-fund portfolio". Forum discussion, "The Three-Fund Portfolio".

For example you could use this fund from the regular 401k menu --
1) Fidelity U.S. Bond Index Fund Premium Class (FSITX) ER 0.05%,

and you could use these two funds through the BrokerageLink,
2) Fidelity Total Stock Market Index Fund Premium Class (FSTVX) ER 0.035%; and
3) Fidelity Total International Stock Index Fund Premium Class (FTIPX) ER 0.10%.

ETadvisor
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Re: 401k funds please help me chose.

Post by ETadvisor » Thu May 24, 2018 6:36 pm

lepa71 wrote:
Thu May 24, 2018 7:30 am
]'m looking back at my statement and I think I meant to say that I can split contributions between Trad 401k and Roth 401k. I don't see anywhere as to how I can dedicate specific funds to one vs another. I only have a percentage split between the two.
That seems correct and is the way my 401k is also. I split using the same funds at approx. 12k to Trad. 401k and 6.5k to Roth 401k. No Rhyme or Reason because I can't predict the future. I place more in the Trad. 401k because my 401k holds all my bond funds and I do not want them in the Roth but I have no choice. BTW the employer match is funded in the Trad. 401k in my plan.

lepa71
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Re: 401k funds please help me chose.

Post by lepa71 » Thu May 24, 2018 7:44 pm

I think all employers contribution goes into Trad 401k. Somebody wants their money eventually.

ETadvisor
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Re: 401k funds please help me chose.

Post by ETadvisor » Thu May 24, 2018 8:01 pm

lepa71 wrote:
Thu May 24, 2018 7:44 pm
I think all employers contribution goes into Trad 401k. Somebody wants their money eventually.
Yes, I just highlighted it as something to incorporate when determining your split among other variables, specifically taxes.

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