Feedback on my 401K options

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michaellynton
Posts: 1
Joined: Mon Feb 05, 2018 3:23 pm

Feedback on my 401K options

Post by michaellynton » Mon Feb 12, 2018 12:25 pm

Hello,
First post here. I've learned a lot from this board, in a short time of reading through posts.

I'm looking for some feedback. I'm 36, married, 1 kid + 1 on the way (aka wealth accumulation stage). I have a 401K at work, and a 50% match up to 6%. I think it'll go up to 75% match shortly, as I come up on 2 years. Anyway, I'm putting in 6%, so I can get the match. Up to this point, I've been doing a Roth after I put in the 6%.

As I've read about why the 401K should be maxed out, I'm reconsidering my approach and thinking about continuing to add to the 401K before the Roth, to maximize tax deductions. I like the control over my retirement accounts at Vanguard though, e.g. Simple VTSAX and VBTLX.

My questions:
- Any feedback on the above situation, adding more to 401K v Roth?
- Feedback on any revisions of the below allocation to mimic VTSAX?

Of these available funds below, ( filtered to < 0.50% expense ratio), I'm currently in:
- Vanguard Institutional 500 Index Trust (90%) https://docs.retirementpartner.com/fund ... 8021295531
- Vanguard Total Bond Market Index Trust (10%) https://docs.retirementpartner.com/fund ... FUNDOV.PDF

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Thank you much!

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Watty
Posts: 14358
Joined: Wed Oct 10, 2007 3:55 pm

Re: Feedback on my 401K options

Post by Watty » Tue Feb 13, 2018 6:04 am

You are missing international stocks and small and mid cap stocks.

I would just use the target date Lifepath fund that is closed to your planned retirement date since I would assume that they would be more diversified and include these.

The main reasons not to use a target date fund are if you also have retirement money in a taxable account or if you do not have a good low cost one in your 401k. Those do not seem to be a problem for you.

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