401k Choices

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kranzmc
Posts: 2
Joined: Fri Jan 12, 2018 1:59 pm

401k Choices

Post by kranzmc » Fri Jan 12, 2018 2:08 pm

Hola Amigos,

I recently changed jobs, and am wading through my 401k contribution options.

For context, I currently have ~$70k invested in an IRA (rolled over 401ks from previous jobs) with Betterment.

I am comfortable with an aggressive (yet low-fee and passive) approach to investing. The past two jobs afforded me the opportunity to invest in Fidelity's SPTN500 index fund which I took advantage of with 100% allocation.

The new gig is managed by Ascensus and I have the following choices. I'm tentatively 100% invested in VOO, but am worried my dividends won't automatically be reinvested and that I'll get dinged by trade fees on every contribution. Would appreciate any clarification and suggestions!

American Century Strat Allc Cnsrv Inv (TWSCX) 0%
American Century Strat Allc: Agrsv Inv (TWSAX) 0%
American Century Strat Allc: Mod Inv (TWSMX) 0%
BlackRock Global Allocation Instl (MALOX) 0%
DFA Real Estate Securities Portfolio I (DFREX) B 0%
DFA U.S. Targeted Value Portfolio I (DFFVX) B 0%
DFA US Large Cap Value III Port Instl (DFUVX) B 0%
Fidelity Contrafund Fund (FCNTX) 0%
Janus Henderson Enterprise N (JDMNX) 0%
Loomis Sayles Bond Retail (LSBRX) B 0%
MetLife GAC-25053 Class 0 0%
Oakmark Equity & Income Investor (OAKBX) 0%
PIMCO ETF Trust Active Bond ETF 0%
PIMCO Real Return P (PRLPX) 0%
Pioneer Fundamental Growth Fund K (PFGKX) B 0%
Principal Global Div Inc Instl (PGDIX) 0%
T. Rowe Price Personal Strat Growth Inv (TRSGX) 0%
Templeton Global Bond Adv (TGBAX) 0%
Vanguard FTSE Emerging Markets ETF 0%
Vanguard GNMA Inv (VFIIX) B 0%
Vanguard Mid-Cap ETF 0%
Vanguard Mid-Cap Value Index Adm (VMVAX) B 0%
Elected Vanguard S & P 500 ETF 100%
Vanguard Small-Cap ETF 0%
Vanguard Target Retirement 2015 Inv (VTXVX) B 0%
Vanguard Target Retirement 2020 Inv (VTWNX) B 0%
Vanguard Target Retirement 2025 Inv (VTTVX) B 0%
Vanguard Target Retirement 2030 Inv (VTHRX) B 0%
Vanguard Target Retirement 2035 Inv (VTTHX) B 0%
Vanguard Target Retirement 2040 Inv (VFORX) B 0%
Vanguard Target Retirement 2045 Inv (VTIVX) B 0%
Vanguard Target Retirement 2050 Inv (VFIFX) B 0%
Vanguard Target Retirement Income Inv (VTINX) B 0%
Vanguard Total Bond Market ETF 0%
Vanguard Total International Stock ETF 0%

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David Jay
Posts: 4709
Joined: Mon Mar 30, 2015 5:54 am
Location: Michigan

Re: 401k Choices

Post by David Jay » Fri Jan 12, 2018 3:03 pm

Welcome to the forum!

You seem to have a pretty good selection of funds. A couple of comments:
1. I would be extremely surprised if a 401K did not do automatic reinvestment of dividends.
2. It is unusual for there to be a fund exchange fee within a 401K, check with HR before getting too worried.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

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Tyler Aspect
Posts: 972
Joined: Mon Mar 20, 2017 10:27 pm
Location: California
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Re: 401k Choices

Post by Tyler Aspect » Sun Jan 14, 2018 1:48 am

kranzmc wrote:
Fri Jan 12, 2018 2:08 pm
Elected Vanguard S & P 500 ETF 100%
Vanguard Total Bond Market ETF 0%
Vanguard Total International Stock ETF 0%
These are the three best options in your 401k program.
Past result does not predict future performance. Mentioned investments may lose money. Contents are presented "AS IS" and any implied suitability for a particular purpose are disclaimed.

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Watty
Posts: 13079
Joined: Wed Oct 10, 2007 3:55 pm

Re: 401k Choices

Post by Watty » Sun Jan 14, 2018 10:37 pm

The only reason not to use one of the Target Date Retirement Funds would be if you have RETIREMENT funds in a taxable account so you need to be concerned about tax efficiency.

Mors
Posts: 165
Joined: Wed Aug 16, 2017 10:06 am

Re: 401k Choices

Post by Mors » Mon Jan 15, 2018 3:24 am

Greetings.

Target retirement funds are great all inclusive choices.

You can replicate them with a bit lower er with:

US market
Vanguard S & P 500 ETF
Vanguard Mid-Cap ETF / Vanguard Mid-Cap Value Index Adm
Vanguard Small-Cap ETF

Int market
Vanguard Total International Stock ETF

Bonds
Vanguard Total Bond Market ETF

DFA funds are also index funds that are supposed to outperform market weighted ones in a risk adjusted basis. I doubt it, but if you do not mind the added complexity you can use them. Having access to them outside of your employer plan is impossible without hiring a FA.

A possible allocation.

US stocks
30% Vanguard S & P 500
10% DFA US Large Cap Value III Port Instl
5% Vanguard Mid-Cap Value Index Adm
5% DFA U.S. Targeted Value Portfolio I
5% DFA Real Estate Securities Portfolio I

Int stocks
35% Vanguard Total International Stock

US Bonds
Vanguard Total Bond Market ETF

kranzmc
Posts: 2
Joined: Fri Jan 12, 2018 1:59 pm

Re: 401k Choices

Post by kranzmc » Thu Feb 08, 2018 2:40 pm

Thank you all for the suggestions, I appreciate your insight and feedback!

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