403(b) fund selections

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Iowa David
Posts: 57
Joined: Mon Dec 18, 2017 9:53 pm

403(b) fund selections

Post by Iowa David » Sun Sep 16, 2018 1:26 pm

I have recently updated my wife's fund selection in her 403(b) and I would like to run this by the community to see if the selection is sound.

Funds available in her 403(b):

T Rowe Price Retirement 20xx Trust (??) (0.48%)
Comerica SDA Ttl Bond Mkt Index (???) (0.21%) <<--- This is what I selected
PIMCO (PTTRX)(0.61%)
American Funds Washington Mutual (AWSHX)(0.40%)
Comerica SDA Large Cap Equity Index (??)(0.21%)
Vanguard Inst. Index Fund; Inst Plus Share (VIIIX)(0.12%) <<--- This is what I selected
CRM Mid Cap Value Fund (CRIMX)(0.96%)
Harbor Mid Cap Growth Fund (HAMGX)(0.91%)
Comerica SDA Mid-Small Cap Index (??)(0.21%)
MSIF Small Company Growth Fund (MSSGX)(1.03%)
Victory RS Partners Fund (RSPFX)(1.12%)
American Funds Euro Pacific Growth (AEPGX)(0.60%)
Comerica SDA International Equity Index (??)(0.26%)
Fidelity Diversified International Fund (FDIVX)(0.89%)

Her Roth:
100% Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) (0.11%)

His 401k
100% TA Vanguard Instl Trg Re 2045 (VTIVX) (0.15%)

His Roth IRA at Vanguard
100% Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) (0.11%)

His Rollover IRA at Vanguard
19% Vanguard Total Bond Market Index (VBTLX) (0.05%)
8% Vanguard Total International Bond Index Fund (VTABX) (0.11%)
5%Vanguard Total International Stock Index Fund(VTIAX) (0.11%)
68% Vanguard Total Stock Market Index Fund (VTSAX) (0.04%)

Age: 39 for both
His & Her combined Desired Asset allocation: 80% stocks / 20% bonds


Questions:
1. I have moved her assets between the two funds highlighted in blue.

I selected these funds due to their lower cost.

Do we have her too isolated in the large cap? Or would you suggest adding one or two more funds for higher diversity, but higher costs?

2. Her AARP retirement plans offers the ability to have a self-directed brokerage account through Alight Financial Solutions and the fees are roughly $20/quarter. I don't know much about this yet, but it may open the door to a broader variety of options.

If we went this route and assuming that we'd have access to the broader list of Vanguard funds, would this be worth the cost?

Thanks in advance for your input!
"Just a 1 percent difference in expenses makes an 18 percent difference in returns when compounded over 20 years." The Boglehead's Guide to Investing

Cheryl604
Posts: 104
Joined: Sat May 24, 2014 12:24 pm

Re: 403(b) fund selections

Post by Cheryl604 » Sun Sep 16, 2018 2:19 pm

I think the funds you have selected inside Her 403b look good. I would not add any to the selections. Of course, you haven't given us the proportion of your total portfolio that is within each account, so is she too heavily invested in large caps? Dunno- but you should calculate if you all are within your desired ratio of 80/20. That would be your answer. At first glance, I think you look pretty nicely set up, but that's without knowing the ratios.

Iowa David
Posts: 57
Joined: Mon Dec 18, 2017 9:53 pm

Re: 403(b) fund selections

Post by Iowa David » Mon Sep 17, 2018 6:49 am

Thanks @Cheryl604 .

Anyone else have anything to add before this thread gets completely buried?
"Just a 1 percent difference in expenses makes an 18 percent difference in returns when compounded over 20 years." The Boglehead's Guide to Investing

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CyclingDuo
Posts: 1771
Joined: Fri Jan 06, 2017 9:07 am

Re: 403(b) fund selections

Post by CyclingDuo » Mon Sep 17, 2018 9:33 am

Iowa David wrote:
Sun Sep 16, 2018 1:26 pm
Funds available in her 403(b):

Comerica SDA Ttl Bond Mkt Index (???) (0.21%) <<--- This is what I selected


Vanguard Inst. Index Fund; Inst Plus Share (VIIIX)(0.12%) <<--- This is what I selected

Comerica SDA Mid-Small Cap Index (??)(0.21%)

Comerica SDA International Equity Index (??)(0.26%)
We would add the Mid-Small Cap Index to the Vanguard S&P 500 fund you have chosen to approximate the "Total Stock Market". Instructions to get the correct percentages are at the link provided, but basically allocating about 19% of the portion going to US Domestic stocks would go to that Mid-Small Cap fund, and the other 81% to the Vanguard S&P 500 fund: https://www.bogleheads.org/wiki/Approxi ... ock_market

We would also add the International Index fund so you have, in essence, the classic Three Fund Portfolio within her 403b. Those are fairly low-cost funds that would accomplish this.
"Everywhere is within walking distance if you have the time." ~ Steven Wright

Iowa David
Posts: 57
Joined: Mon Dec 18, 2017 9:53 pm

Re: 403(b) fund selections

Post by Iowa David » Wed Sep 19, 2018 8:16 pm

Thank you @cyclingduo.
"Just a 1 percent difference in expenses makes an 18 percent difference in returns when compounded over 20 years." The Boglehead's Guide to Investing

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