VINIX VS VIGAX IN ROTH 401K?

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Topic Author
Samurai_Mom9919
Posts: 2
Joined: Tue Sep 21, 2021 11:00 am

VINIX VS VIGAX IN ROTH 401K?

Post by Samurai_Mom9919 »

Hi! New to investing and Bogleheads! I'm realizing now I want to be more aggressive and possibly get out of bonds entirely for goal of financial freedom/FIRE. Currently 39. Should I move all my $ in bonds and target date fund to VINIX? I currently have in my ROTH 401K:

5% VIBLX (vang intermed term bond index)
20% VTRLX (vang instit target 2050)
25% VIGAX (vang growth index)
25% VIMAX (vang mid-cap index)
25% VSMAX (van small-cap index)

What do you all think of moving the 5% bond & 20% target fund to 25% VINIX? Thanks in advance!
exodusNH
Posts: 10249
Joined: Wed Jan 06, 2021 7:21 pm

Re: VINIX VS VIGAX IN ROTH 401K?

Post by exodusNH »

Samurai_Mom9919 wrote: Tue Sep 21, 2021 11:53 am Hi! New to investing and Bogleheads! I'm realizing now I want to be more aggressive and possibly get out of bonds entirely for goal of financial freedom/FIRE. Currently 39. Should I move all my $ in bonds and target date fund to VINIX? I currently have in my ROTH 401K:

5% VIBLX (vang intermed term bond index)
20% VTRLX (vang instit target 2050)
25% VIGAX (vang growth index)
25% VIMAX (vang mid-cap index)
25% VSMAX (van small-cap index)

What do you all think of moving the 5% bond & 20% target fund to 25% VINIX? Thanks in advance!
At what age do you want to retire?
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arcticpineapplecorp.
Posts: 15014
Joined: Tue Mar 06, 2012 8:22 pm

Re: VINIX VS VIGAX IN ROTH 401K?

Post by arcticpineapplecorp. »

you can but you'll have no international stock which the target date fund is providing you.

if that's ok with you and you understand the risk of a 100% stock allocation (see below, numbers based on a 50% stock decline which you should always be prepared to handle) then go for it. If not, you should choose from one of the other asset allocations below (hint: the other allocations with less losses than the 100% stock portoflio have less losses because of the bonds you'll be getting rid of).

Image

there's also not enough to know here like do you have a IRA/Roth IRA? Do you have taxable acct? and so on. If you want to edit your OP according to asking portfolio questions you'll get better answers.
It's hard to accept the truth when the lies were exactly what you wanted to hear. Investing is simple, but not easy. Buy, hold & rebalance low cost index funds & manage taxable events. Asking Portfolio Questions | Wiki
sycamore
Posts: 6309
Joined: Tue May 08, 2018 12:06 pm

Re: VINIX VS VIGAX IN ROTH 401K?

Post by sycamore »

Samurai_Mom9919 wrote: Tue Sep 21, 2021 11:53 am Hi! New to investing and Bogleheads! I'm realizing now I want to be more aggressive and possibly get out of bonds entirely for goal of financial freedom/FIRE. Currently 39. Should I move all my $ in bonds and target date fund to VINIX? I currently have in my ROTH 401K:

5% VIBLX (vang intermed term bond index)
20% VTRLX (vang instit target 2050)
25% VIGAX (vang growth index)
25% VIMAX (vang mid-cap index)
25% VSMAX (van small-cap index)

What do you all think of moving the 5% bond & 20% target fund to 25% VINIX? Thanks in advance!
Welcome to the forum, Samurai_Mom9919!

Your Target Date fund VTRLX is 90% stocks, so its bonds are only 2% of the whole portfolio. All told, your portfolio has only 7% in bonds. Switching that 7% to stocks will likely make a very small difference to total return, perhaps +/- 0.20% per year.

I think your existing tilt to growth and mid/small cap stocks is plenty aggressive.

I'll second arcticpineapplecorp's suggestion that you post your details according to the Asking Portfolio Questions -- if you're aiming to achieve FIRE, there are more important questions to consider than just your asset allocation.
Topic Author
Samurai_Mom9919
Posts: 2
Joined: Tue Sep 21, 2021 11:00 am

Re: VINIX VS VIGAX IN ROTH 401K?

Post by Samurai_Mom9919 »

Thanks all! I'll be sure to post to Ask Portfolio Questions in the future!

Yes, I just starting max out my ROTH IRA and my ROTH 401K both. I'm currently on track to retire by 55 but trying to push it up to 50. So 11 years, not sure if I can do it but here's to trying! I do have more diversification in my ROTH IRA (including VEMAX).
exodusNH
Posts: 10249
Joined: Wed Jan 06, 2021 7:21 pm

Re: VINIX VS VIGAX IN ROTH 401K?

Post by exodusNH »

Samurai_Mom9919 wrote: Tue Sep 21, 2021 9:55 pm Thanks all! I'll be sure to post to Ask Portfolio Questions in the future!

Yes, I just starting max out my ROTH IRA and my ROTH 401K both. I'm currently on track to retire by 55 but trying to push it up to 50. So 11 years, not sure if I can do it but here's to trying! I do have more diversification in my ROTH IRA (including VEMAX).
You don't list your marginal tax rate, but if you're at 22% or above, you will probably pay less taxes overall if you contribute pre-tax to your 401k.

Oh, and because I'm pedantic, it's Roth. It is the last name of the person who sponsored the legislation that created the plan. It's not an acronym. :)
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