401k Fund Selection Suggestions

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JSparks
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Joined: Mon Jul 25, 2016 10:03 am

401k Fund Selection Suggestions

Post by JSparks » Thu Jun 27, 2019 10:33 am

We're updating the list of funds on our company's 401k which now only has me and my wife as participants. We're reached FIRE at 48/48 this year and we're planning retirement in 2 to 5 years so we have no need for any significant risk. We're delaying retirement because we still enjoy what we do.

I'm going to put VGTSX, VTSMX, VBMFX, and HABDX in there though I don't know what percentages we will put in them. I will also want to get some VG target date retirement funds in there as well.

What other low cost funds (Fidelity, VG etc.) would you recommend for a low risk line up?

bloom2708
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Re: 401k Fund Selection Suggestions

Post by bloom2708 » Thu Jun 27, 2019 12:34 pm

You should post all the available options with the full fund names (tickers are hard to decipher) and the Expense Ratios. Can you pick from any funds or is there a subset?

I would focus on a few very low cost index funds. Viewing your entire portfolio as one entity. If you don't have a good international fund, maybe that is in Roth and Taxable.

Total US Stock index (S&P 500 + Extended Market 80/20 can substitute)
Total International Index
Int-Term Bond index of some sort

Your percentages should be based on getting your portfolio to your goal mix of stocks/bonds/cash. I like Target funds if they are low cost and you pick the one that matches your mix of stocks/bonds.

Are you a 45% International person or a 20% person? Is your stock to bond ratio 80/20 or 60/40?

Pick funds and percentages that fit with your full portfolio. It is often a good idea to have your bonds in your 401k. That allows for your Roths and Taxable to be stock index funds (or mostly stock index funds).

Better yet is to post with this format:

viewtopic.php?t=6212
"We are here to provoke thoughtfulness, not agree with you." Unknown Boglehead

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JSparks
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Re: 401k Fund Selection Suggestions

Post by JSparks » Fri Jun 28, 2019 10:39 am

I can pick from any funds. It's full open architecture.

Here are details for the four that are definitely going in there...
VGTSX - Vanguard Total International Stock Index Fund
VTSMX - Vanguard Total Stock Market Index Fund
VBMFX - Vanguard Total Bond Market Index Fund
HABDX - Harbor Bond Fund Institutional Class (this one is questionable for me)

We're probably going to be 60 bond / 20 stock / 20 international. May be some fixed income in place of the international right now.
So we're looking for suggestions (with tickers) for funds in many areas. Any suggestions are appreciated!

bloom2708
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Re: 401k Fund Selection Suggestions

Post by bloom2708 » Fri Jun 28, 2019 10:52 am

If you have Total US Bond, I see no need for the Harbor fund with a .8% expense ratio.

Vanguard Total World stock and Vanguard Total US Bond would create a nice 2 fund portfolio.

You could also offer the 4 LifeStrategy Vanguard funds with the 3 Total Market for those that want a "set it and forget it" single fund.
"We are here to provoke thoughtfulness, not agree with you." Unknown Boglehead

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