401k 3 fund portfolio to replicate Total World Stock Market

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
TSPballer
Posts: 13
Joined: Tue Oct 08, 2019 8:45 pm

401k 3 fund portfolio to replicate Total World Stock Market

Post by TSPballer »

Good evening fellow bogleheads!

My wife just received enrollment materials for her new employer's 401k plan and investment options. Needless to say, I'm ecstatic to discover that she has access to VG's institutional shares.

She and I have discussed AA and have agreed that a 100/0 stocks to bonds AA fits her/our needs for now. We have many years left to be in the workforce and relatively stable jobs (military and physical therapist).

Having said all that here's what I've devised to give her a 100/0 AA with a 60/40 US/Int'l split:

VIIIX Vanguard Institutional Index Fund Institutional Plus Shares - 48% (ER = .02%)

VEMPX Vanguard Extended Market Index Fund Institutional Plus Shares - 12% (ER = .05%)

VTPSX Vanguard Total International Stock Index Fund Institutional Plus Shares - 40% (ER = .07%)

I would also like to say, I'd love to just put her into a one fund VG target date or lifestyle fund. Unfortunately, they are not available so I figured this was the next best option.

Thank y'all so much for and insight/advice!
Triple digit golfer
Posts: 7251
Joined: Mon May 18, 2009 5:57 pm

Re: 401k 3 fund portfolio to replicate Total World Stock Market

Post by Triple digit golfer »

Those 3 funds should get you right about at the total world equivalent.

If you would have used a target fund or life strategy fund, you'd have at least 10% bonds.
carmonkie
Posts: 329
Joined: Fri Jun 29, 2018 4:31 pm

Re: 401k 3 fund portfolio to replicate Total World Stock Market

Post by carmonkie »

I personally like round numbers. 50/10 would be good close enough. :happy
Post Reply