Help with 401k fund pick

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Topic Author
pengie65
Posts: 2
Joined: Mon Jul 08, 2024 7:21 am

Help with 401k fund pick

Post by pengie65 »

Hello,
Need help with 401k fund pick on new job.
Age: 30
Funds in the plan.
Vanguard funds: VIIIX, VEMPX, VBTIX, VTSNX VEMIX, VIPIX, VGSNX, VPMAX, VWNAX,
AMERICAN: RWIGX RERGX
Dodge & cox – DODIX
Leaning towards: VIIIX (65), VEMPX (5), VBTIX (10), VTSNX (20). No int. bond idx fund.
Should I include DODIX at this age to accumulate a little every year over the years?
Appreciate your inputs.
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oldcomputerguy
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Location: Tennessee

Re: Help with 401k fund pick

Post by oldcomputerguy »

pengie65, welcome to the forum! Most members don't have tickers memorized other than for certain funds, so I listed the fund names as follows:

VIIIX - (Vanguard Institutional Index Fund Institutional Plus Shares)
VEMPX - (Vanguard Extended Market Index Fund Institutional Plus Shares)
VBTIX - (Vanguard Total Bond Market Index Fund Institutional Shares)
VTSNX - (Vanguard Total International Stock Index Fund Institutional Shares)
VEMIX - (Vanguard Emerging Markets Stock Index Fund Institutional Shares)
VIPIX - (Vanguard Inflation-Protected Securities Fund Institutional Shares)
VGSNX - (Vanguard Real Estate Index Fund Institutional Shares)
VPMAX - (Vanguard PRIMECAP Fund Admiral Shares)
VWNAX - (Vanguard Windsor™ II Fund Admiral™ Shares)

AMERICAN:
RWIGX - (American Funds Capital World Growth and Income Fund® Class R-6)
RERGX - (American Funds EuroPacific Growth Fund® Class R-6)

Dodge & Cox – DODIX (Dodge & Cox Income Fund Class I)
There is only one success - to be able to spend your life in your own way. (Christopher Morley)
dorster
Posts: 372
Joined: Tue Aug 15, 2017 4:20 pm

Re: Help with 401k fund pick

Post by dorster »

What you're suggesting is fine. I'd encourage you to start thinking about choosing an allocation rather than funds.

Meaning the first step is deciding
90/10 Stocks/Bonds
with 20% of stocks international

After that you track your allocation onto available funds (making compromises when necessary) across different accounts.

Why would you want DODIX (Dodge & Cox Income Fund Class I)?
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retired@50
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Location: Living in the U.S.A.

Re: Help with 401k fund pick

Post by retired@50 »

pengie65 wrote: Mon Jul 08, 2024 7:50 am
Leaning towards: VIIIX (65), VEMPX (5), VBTIX (10), VTSNX (20). No int. bond idx fund.
I'd use a bit less of the VIIIX (maybe 60) and a bit more of VEMPX (maybe 10) to better represent the entire US market.

Otherwise, it's fine.

Regards,
"All of us would be better investors if we just made fewer decisions." - Daniel Kahneman
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ruralavalon
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Location: Illinois

Re: Help with 401k fund pick

Post by ruralavalon »

Welcome to the forum :D

Your employer's plan offers many good funds to use, and no bad choices, you are very fortunate.

Concentrate on establishing a high rate of contributions. The maximum annual employee contribution is $23k annually. Any employee match does not count towards the employee maximum, it's extra.

pengie65 wrote: Mon Jul 08, 2024 7:50 am Hello,
Need help with 401k fund pick on new job.
Age: 30
Funds in the plan.
Vanguard funds: VIIIX, VEMPX, VBTIX, VTSNX VEMIX, VIPIX, VGSNX, VPMAX, VWNAX,
AMERICAN: RWIGX RERGX
Dodge & cox – DODIX
Leaning towards: VIIIX (65), VEMPX (5), VBTIX (10), VTSNX (20). No int. bond idx fund.
Should I include DODIX at this age to accumulate a little every year over the years?
Appreciate your inputs.
Those are excellent fund choices which you are "leaning towards".

To simplify you could just use Vanguard Institutional Index Institutional Plus (a S&P 500 index fund, covers 85% of the U.S.stock market) (VIIIX) by itself for your U.S. stock allocation. I would not bother using another U.S. stock fund trying to better mimic a total stock market index fund. Historically total stock and S&P 500 index funds have had almost identical performance.

Dodge & Cox Income I (DODIX) is a good actively managed bond fund, well diversified with a below average expense ratio and good historical performance compared to a total bond market index fund. But I prefer a good index fund over a good actively managed fund, so I suggest Vanguard Total Bond Market Index I (VBTIX) instead.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
Topic Author
pengie65
Posts: 2
Joined: Mon Jul 08, 2024 7:21 am

Post by pengie65 »

Thank you very much for your input
Mopar440
Posts: 22
Joined: Thu Jul 12, 2018 6:28 am

Re: Help with 401k fund pick

Post by Mopar440 »

Get some VPMAX Primecap for sure. Still closed outside of 401k plans I believe. Been a wealth builder for me. 500k +
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