30 yr old needing rebalance advice for current 401k

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wtrtwrclmbr
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Joined: Tue Oct 02, 2018 1:17 pm

30 yr old needing rebalance advice for current 401k

Post by wtrtwrclmbr » Tue Oct 02, 2018 1:50 pm

[Post updated, see below. --admin LadyGeek]

EDIT:

Long time lurker here, looking for some input. My 401(k) plan through my employer seems to be overloaded with Lifetime/Target date funds, which is what I was contributing to since my first day here. Approximately 3 years ago I adjusted my "future allocations" to include some small, mid, international funds. The good news is that besides the Target Retirement funds, I DO have SOME Vanguard options. I will spell out my current portfolio the best I can and ask the questions at the end.


Emergency funds: Appx. 4 months in Savings
Debt: Wifes car @ 5k +/-, Wifes student loan @ 2k +/-, House @ 50k +/-
Tax Filing Status: Married Filing Jointly
Tax Rate: 25% Federal, 4.25% State
State of Residence: MI
Age: 30
Desired Asset allocation: 95% stocks / 5% bonds
Desired International allocation: ??% of stocks

Mid 5 figure account with current employer; 1.5% match.
high 4 figure account with previous employer
high 4 figure roth account balance with American Funds

His 401k

(Current portfolio holdings with current employers 401k)/Fund {Ticker}/ER- {percent of future allocations going in currently}

(68%)- Great-West Lifetime 2055 Trust- .45- {30%}
(13%)- Vanguard Mid Cap Index Ins (VMCIX)- .04- {20%}
(10%)- Victory Small Cap Value Collective 75- .75 {10%}
(8%)- Vanguard Small Cap Index Ins (VSCIX)- .04 {20%}
(4%)- Vanguard Total International Stock Index Instl (VTSNX)- .09 {20%}

New annual Contributions
13.5% plus 1.5% match to his 401k
Roth IRA- I would like to start contributions to this again too

Available funds in current 401k

Funds available in his 401(k)
Great-West Lifetime 2015 Trust Lifetime- .43
Great-West Lifetime 2020 Trust Lifetime- .43
Great-West Lifetime 2025 Trust Lifetime- .43
Great-West Lifetime 2030 Trust Lifetime- .43
Great-West Lifetime 2035 Trust Lifetime- .43
Great-West Lifetime 2040 Trust Lifetime- .43
Great-West Lifetime 2045 Trust Lifetime- .43
Great-West Lifetime 2050 Trust Lifetime- .43
Great-West Lifetime 2055 Trust Lifetime- .43
Great-West SecureFoundation Bal Inst-MXCJX- .29
American Funds EuroPacific Gr R6-International Funds-RERGX- .49
Invesco Developing Markets R6-International Funds-GTDFX- 1.02
Vanguard Total Intl Stock Index Instl-International Funds-VTSNX- .09
MSCI EAFE Index
Nuveen Real Estate Securities R6-Speciality-FREGX- .87
Carillon Eagle Small Cap Growth R6-Small Cap Funds-HSRUX- .66
Vanguard Small Cap Index Instl-Small Cap Funds-VSCIX- .04
Victory Small Cap Value Collective 75-Small Cap Funds- .75
Russell 2000 Index
JHancock Disciplined Value Mid Cap R6-Mid Cap Funds-JVMRX- .76
T. Rowe Price Instl Mid-Cap Equity Gr-Mid Cap Funds-PMEGX- .61
Vanguard Mid Cap Index Ins-Mid Cap Funds-VMCIX- .04
S&P MidCap 400 Index
American Funds Washington Mutual R6-Large Cap Funds-RWMGX- .29
Jenison Large Cap Growth- Large Cap- .41
Vanguard FTSE Social Index- Large Cap VFTSX- .20
Vanguard Insititutional Index Instl Pl- Large Cap VIIIX- .02
S&P 500 Index
American Funds American Balanced R6- Balanced Fund RLBGX- .28
Prudential Core Plus Bond Fund Class 12- Fond Fund- .00
Vanguard Total Bond Market Index Inst- Bond Fund VTIX- .04
Barclays Aggregate Bond Index
Guaranteed Intrest fund @1.35%



I was considering a rebalance to my current employers 401k with the following...

Vanguard Small Cap Index Ins (VSCIX)- {20% of future allocation}
Vanguard Mid Cap Index Ins (VMCIX)- {35% of future allocation}
Vanguard Institutional Index Instl (VIIIX) [ER is .02]- {35% of future allocation}
Vanguard Total International Stock Index Instl (VTSNX)- {10% of future allocation}


Currently married with no children, but will likely have a couple in the next few years. I am willing to take on risk since I am 25 years minimum from retirement. I prefer the "set it and forget it" way of investing, I do not plan to lower my contributions, but will up them once the debts are taken care of. I have a Roth account with American Funds that I contributed to for a few years, but temporarily cut off contributions a year back to take on a house remodel I performed with cash. I also have one account from a previous employer that I have just left idle because it was performing alright vs what option I have. I am shooting to retire by 55 years old, or at least cut back on hours significantly. Should I adjust my future allocations to include more small and mid cap, or do you think the percentages are ok? Should I roll previous Roth and 401k into a new vanguard account? Leave well enough alone and keep some of the target date fund even though it’s a higher ER? I have additional options within the current employers 401(k) plan, but most ER are .66 and worse.

I appreciate any and all input you guys have. If you need clarification on anything I will be glad to do that as well.
Last edited by wtrtwrclmbr on Thu Oct 11, 2018 8:03 am, edited 2 times in total.

b42
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Re: 30 yr old needing rebalance advice

Post by b42 » Tue Oct 02, 2018 2:00 pm

Welcome to the forums!

Can you list out all of the 401k options available to you? Are there additional Vanguard funds available?

wtrtwrclmbr
Posts: 7
Joined: Tue Oct 02, 2018 1:17 pm

Re: 30 yr old needing rebalance advice

Post by wtrtwrclmbr » Tue Oct 02, 2018 2:10 pm

OP here...The only other two Vanguard funds are...

Vanguard Total Bond Market Index (VBTIX)- ER .04
Vanguard FTSE Social Index Inv (VFTSX)- ER .20

I can list the remaining funds if needed.

FoolMeOnce
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Re: 30 yr old needing rebalance advice

Post by FoolMeOnce » Tue Oct 02, 2018 2:16 pm

Your plan seems like a very large tilt to small- and mid-caps for someone who describes themselves as risk averse. (Also no bonds, which I think is fine for a 30 y/o)

But otherwise, consolidating into those funds looks like a fine plan. No point paying the higher ERs.

wtrtwrclmbr
Posts: 7
Joined: Tue Oct 02, 2018 1:17 pm

Re: 30 yr old needing rebalance advice

Post by wtrtwrclmbr » Wed Oct 03, 2018 5:23 am

FoolMeOnce wrote:
Tue Oct 02, 2018 2:16 pm
a very large tilt to small- and mid-caps for someone who describes themselves as risk averse.
Can you emphasize on this? Are you suggesting I should allocate more % to the large cap sector?

Lou354
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Re: 30 yr old needing rebalance advice

Post by Lou354 » Wed Oct 03, 2018 5:42 am

wtrtwrclmbr wrote:
Wed Oct 03, 2018 5:23 am
FoolMeOnce wrote:
Tue Oct 02, 2018 2:16 pm
a very large tilt to small- and mid-caps for someone who describes themselves as risk averse.
Can you emphasize on this? Are you suggesting I should allocate more % to the large cap sector?
The US stock market is about 80% large cap, 20% small/mid cap.
https://www.bogleheads.org/wiki/Approxi ... ock_market

FoolMeOnce
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Re: 30 yr old needing rebalance advice

Post by FoolMeOnce » Wed Oct 03, 2018 9:50 am

Lou354 wrote:
Wed Oct 03, 2018 5:42 am
wtrtwrclmbr wrote:
Wed Oct 03, 2018 5:23 am
FoolMeOnce wrote:
Tue Oct 02, 2018 2:16 pm
a very large tilt to small- and mid-caps for someone who describes themselves as risk averse.
Can you emphasize on this? Are you suggesting I should allocate more % to the large cap sector?
The US stock market is about 80% large cap, 20% small/mid cap.
https://www.bogleheads.org/wiki/Approxi ... ock_market
Yes, this. Many people tilt their portfolios (stray from market weights) to add extra small cap value, which has a slightly better historical performance. But it comes with added risk and the chance of underperforming the market for a decade or more. Some are fine with the extra risk. But you have a heavy tilt and also say you are risk-averse, so you should read more about this to understand the dissonance. If you really are risk averse, you would want to align your portfolio closer to market weights.

Jack FFR1846
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Re: 30 yr old needing rebalance advice

Post by Jack FFR1846 » Wed Oct 03, 2018 9:58 am

Do you have a low cost large cap fund of some kind? S&P would do. And what about bond funds?

A listing of all available funds would help.
Bogle: Smart Beta is stupid

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ruralavalon
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Location: Illinois

Re: 30 yr old needing rebalance advice

Post by ruralavalon » Wed Oct 03, 2018 10:33 am

Welcome to the forum :) .

Some additional information will be very useful.

It's often better to coordinate investments among all accounts, treating all accounts together as a single unified portfolio, rather than viewing each account separately. Whether it's best to transfer an old account somewhere else is almost entirely an issue of expense and fund quality.

Is that a Roth IRA at American Funds? What investments do you have in that account? Please give fund names, tickers and expense ratios.

What kind of account is that at your previous employer? What investments are in that account? Please give fund names, tickers and expense ratios. Is there an annual account maintenance fee or annual administrative fee that you pay to keep the account there?

Do you have any other investment/retirement accounts?

What are the relative sizes of the accounts, in other words what percentage of the total portfolio is in each account?

Will your current employer's 401k plan accept a rollover from your previous employer's plan? Does your current employer's 401k plan allow Roth contributions?

What is your tax bracket, both federal and state? What is your tax filing status? Will out be eligible for a significant pension?

About how much (in dollars) do you believe that you may be able to contribute to investing annually (total, all accounts)?

You can simply add this to your original post using the edit button (the pencil icon near the upper right corner of your post), it helps a lot if all of your information is in one place. Please see the post "asking portfolio questions" for format.

You have some excellent funds offered in your current 401k, you are fortunate.
wtrtwrclmbr wrote:
Tue Oct 02, 2018 1:50 pm
Long time lurker here, looking for some input. My 401(k) plan through my employer seems to be overloaded with Lifetime/Target date funds, which is what I was contributing to since my first day here. Approximately 3 years ago I adjusted my "future allocations" to include some small, mid, international funds. The good news is that besides the Target Retirement funds, I DO have SOME Vanguard options. I will spell out my current portfolio the best I can and ask the questions at the end.

(Current portfolio holdings)/Fund {Ticker}/ER/(percent of future allocations going into account)

(68%)- Great-West Lifetime 2055 Trust- .45- {30%}
(13%)- Vanguard Mid Cap Index Ins (VMCIX)- .04- {20%}
(10%)- Victory Small Cap Value Collective 75- .75 {10%}
(8%)- Vanguard Small Cap Index Ins (VSCIX)- .04 {20%}
(4%)- Vanguard Total International Stock Index Instl (VTSNX)- .09 {20%}

I was thinking of rebalancing to the following...

Fund (ticker)/“potential rebalanced” future allocation %

Vanguard Small Cap Index Ins (VSCIX)- {20%}
Vanguard Mid Cap Index Ins (VMCIX)- {35%}
Vanguard Institutional Index Instl (VIIIX) [ER is .02]- {35%}
Vanguard Total International Stock Index Instl (VTSNX)- {10%}

Currently married with no children, but will likely have a couple in the next few years. I am quite risk adverse, and prefer the "set it and forget it" way of investing. I have a Roth account with American Funds that I contributed to for a few years, but temporarily cut off contributions a year back. I also have one account from a previous employer that I have just left idle because it was performing alright vs what option I have. I am shooting to retire by 55 years old, or at least cut back on hours significantly. Should I adjust my future allocations to include more small and mid cap, or do you think the percentages are ok? Should I roll previous Roth and 401k into a new vanguard account? Leave well enough alone and keep some of the target date fund even though it’s a higher ER? I have additional options within the current employers 401(k) plan, but most ER are .66 and worse.

I appreciate any and all input you guys have. If you need clarification on anything I will be glad to do that as well.
wtrtwrclmbr wrote:
Tue Oct 02, 2018 2:10 pm
OP here...The only other two Vanguard funds are...

Vanguard Total Bond Market Index (VBTIX)- ER .04
Vanguard FTSE Social Index Inv (VFTSX)- ER .20

I can list the remaining funds if needed.
Fund choices.
In selecting funds strive for a combination of broad diversification (to reduce risk) and low expense ratios (to increase your net return).

In my opinion in your current 401k the better funds to consider using are these:
1) Vanguard Institutional Index Fund Institutional (a S&P 500 index fund) (VIIIX) ER 0.02%;
2) Vanguard Total International Stock Index Fund Institutional (VTSNX) ER 0.09%; and
3) Vanguard Total Bond Market Index Fund Institutional (VBTIX) ER 0.03%.


Asset allocation.
At age 30 I suggest around 20% of portfolio in bonds. The primary purpose of a bond allocation is to control portfolio volatility (risk).

I suggest around 20-30% of stocks in international stocks.

That works out to about 20% bonds, 20% international stocks, and 60% domestic stocks. Asset allocation is a very personal decision. You must decide what is comfortable for you based on your own ability, willingness and need to take risk.

You mention that you "are quite risk averse". Do you feel you might want a larger bond allocation?


Other.
You have excellent funds offered in your current 401k. You could consider a rollover of your account from your previous employer into your current 401k account.

It will probably be a good idea to rollover your American Funds account to a low cost provider like Vanguard.

I think you can create a very nice simple portfolio of investments in just a couple of accounts and using just a few funds.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

wtrtwrclmbr
Posts: 7
Joined: Tue Oct 02, 2018 1:17 pm

Re: 30 yr old needing rebalance advice

Post by wtrtwrclmbr » Wed Oct 03, 2018 5:02 pm

Thanks for all the reply’s! Ruralavalon, thanks for taking the time to spell out that information, it’s useful.

I apologize for the mislabel, I am more willing to accept risk due to my current age, and the length of time I still have in the market prior to retirement. I am NOT risk averse.

I will update my first post with information and funds available once I have all them in front of me.

wtrtwrclmbr
Posts: 7
Joined: Tue Oct 02, 2018 1:17 pm

rebalancing future contributuis in employers 401k, 30yr old

Post by wtrtwrclmbr » Thu Oct 11, 2018 8:04 am

EDIT:

Long time lurker here, looking for some input. My 401(k) plan through my employer seems to be overloaded with Lifetime/Target date funds, which is what I was contributing to since my first day here. Approximately 3 years ago I adjusted my "future allocations" to include some small, mid, international funds. The good news is that besides the Target Retirement funds, I DO have SOME Vanguard options. I will spell out my current portfolio the best I can and ask the questions at the end.


Emergency funds: Appx. 4 months in Savings
Debt: Wifes car @ 5k +/-, Wifes student loan @ 2k +/-, House @ 50k +/-
Tax Filing Status: Married Filing Jointly
Tax Rate: 25% Federal, 4.25% State
State of Residence: MI
Age: 30
Desired Asset allocation: 95% stocks / 5% bonds
Desired International allocation: ??% of stocks

Mid 5 figure account with current employer; 1.5% match.
high 4 figure account with previous employer
high 4 figure roth account balance with American Funds

His 401k

(Current portfolio holdings with current employers 401k)/Fund {Ticker}/ER- {percent of future allocations going in currently}

(68%)- Great-West Lifetime 2055 Trust- .45- {30%}
(13%)- Vanguard Mid Cap Index Ins (VMCIX)- .04- {20%}
(10%)- Victory Small Cap Value Collective 75- .75 {10%}
(8%)- Vanguard Small Cap Index Ins (VSCIX)- .04 {20%}
(4%)- Vanguard Total International Stock Index Instl (VTSNX)- .09 {20%}

New annual Contributions
13.5% plus 1.5% match to his 401k
Roth IRA- I would like to start contributions to this again too

Available funds in current 401k

Funds available in his 401(k)
Great-West Lifetime 2015 Trust Lifetime- .43
Great-West Lifetime 2020 Trust Lifetime- .43
Great-West Lifetime 2025 Trust Lifetime- .43
Great-West Lifetime 2030 Trust Lifetime- .43
Great-West Lifetime 2035 Trust Lifetime- .43
Great-West Lifetime 2040 Trust Lifetime- .43
Great-West Lifetime 2045 Trust Lifetime- .43
Great-West Lifetime 2050 Trust Lifetime- .43
Great-West Lifetime 2055 Trust Lifetime- .43
Great-West SecureFoundation Bal Inst-MXCJX- .29
American Funds EuroPacific Gr R6-International Funds-RERGX- .49
Invesco Developing Markets R6-International Funds-GTDFX- 1.02
Vanguard Total Intl Stock Index Instl-International Funds-VTSNX- .09
MSCI EAFE Index
Nuveen Real Estate Securities R6-Speciality-FREGX- .87
Carillon Eagle Small Cap Growth R6-Small Cap Funds-HSRUX- .66
Vanguard Small Cap Index Instl-Small Cap Funds-VSCIX- .04
Victory Small Cap Value Collective 75-Small Cap Funds- .75
Russell 2000 Index
JHancock Disciplined Value Mid Cap R6-Mid Cap Funds-JVMRX- .76
T. Rowe Price Instl Mid-Cap Equity Gr-Mid Cap Funds-PMEGX- .61
Vanguard Mid Cap Index Ins-Mid Cap Funds-VMCIX- .04
S&P MidCap 400 Index
American Funds Washington Mutual R6-Large Cap Funds-RWMGX- .29
Jenison Large Cap Growth- Large Cap- .41
Vanguard FTSE Social Index- Large Cap VFTSX- .20
Vanguard Insititutional Index Instl Pl- Large Cap VIIIX- .02
S&P 500 Index
American Funds American Balanced R6- Balanced Fund RLBGX- .28
Prudential Core Plus Bond Fund Class 12- Fond Fund- .00
Vanguard Total Bond Market Index Inst- Bond Fund VTIX- .04
Barclays Aggregate Bond Index
Guaranteed Intrest fund @1.35%


I was considering a rebalance to my current employers 401k with the following...

Vanguard Small Cap Index Ins (VSCIX)- {20% of future allocation}
Vanguard Mid Cap Index Ins (VMCIX)- {35% of future allocation}
Vanguard Institutional Index Instl (VIIIX) [ER is .02]- {35% of future allocation}
Vanguard Total International Stock Index Instl (VTSNX)- {10% of future allocation}


Currently married with no children, but will likely have a couple in the next few years. I am willing to take on risk since I am 25 years minimum from retirement. I prefer the "set it and forget it" way of investing, I do not plan to lower my contributions, but will up them once the debts are taken care of. I have a Roth account with American Funds that I contributed to for a few years, but temporarily cut off contributions a year back to take on a house remodel I performed with cash. I also have one account from a previous employer that I have just left idle because it was performing alright vs what option I have. I am shooting to retire by 55 years old, or at least cut back on hours significantly. Should I adjust my future allocations to include more small and mid cap, or do you think the percentages are ok? Should I roll previous Roth and 401k into a new vanguard account? Leave well enough alone and keep some of the target date fund even though it’s a higher ER? I have additional options within the current employers 401(k) plan, but most ER are .66 and worse.

I appreciate any and all input you guys have. If you need clarification on anything I will be glad to do that as well.

retiredjg
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Joined: Thu Jan 10, 2008 12:56 pm

Re: rebalancing future contributuis in employers 401k, 30yr old

Post by retiredjg » Thu Oct 11, 2018 9:05 am

There is no reason to keep the target fund. Just sell it and set up the entire account like you want it using those 4 funds you listed. There is no tax cost for doing so.

I would suggest 10 - 20% bonds instead of 5% bonds though.
I have a Roth account with American Funds that I contributed to for a few years, but temporarily cut off contributions a year back to take on a house remodel I performed with cash. I also have one account from a previous employer that I have just left idle because it was performing alright vs what option I have....Should I roll previous Roth and 401k into a new vanguard account?
I would roll the Roth IRA to a Roth IRA at Vanguard or your preferred custodian. Roll the 401k into your current 401k.

MotoTrojan
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Re: rebalancing future contributuis in employers 401k, 30yr old

Post by MotoTrojan » Thu Oct 11, 2018 9:13 am

Agree, just make your overall AA change today.

Also Vanguards small fund follows the CRSP index and is roughly double the median size of other common dna funds like Russell 2000 or my favorite, S&P600. The mid is even larger. I’d skip the mid-cap and just tilt to mid/small via the Small fund. Also I’d tilt less, yours is very extreme.

Maybe 2/3 institutional 1/3 small for US portion.

wtrtwrclmbr
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Re: rebalancing future contributuis in employers 401k, 30yr old

Post by wtrtwrclmbr » Thu Oct 11, 2018 1:42 pm

Does this look better...

Vanguard Small Cap Index Ins (VSCIX)- {25% of future allocation}
Vanguard Mid Cap Index Ins (VMCIX)- {0% of future allocation}
Vanguard Institutional Index Instl (VIIIX) [ER is .02]- {55% of future allocation}
Vanguard Total International Stock Index Instl (VTSNX)- {10% of future allocation}
Vanguard Total Bond Market Index Inst- Bond Fund (VTIX) [.04 ER]- {10% of future allocation}

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Re: 30 yr old needing rebalance advice for current 401k

Post by LadyGeek » Thu Oct 11, 2018 2:52 pm

wtrtwrclmbr, Welcome! You had a duplicate post and replies, which I've merged into the original discussion.
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

retiredjg
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Joined: Thu Jan 10, 2008 12:56 pm

Re: rebalancing future contributuis in employers 401k, 30yr old

Post by retiredjg » Thu Oct 11, 2018 4:38 pm

wtrtwrclmbr wrote:
Thu Oct 11, 2018 1:42 pm
Does this look better...

Vanguard Small Cap Index Ins (VSCIX)- {25% of future allocation}
Vanguard Mid Cap Index Ins (VMCIX)- {0% of future allocation}
Vanguard Institutional Index Instl (VIIIX) [ER is .02]- {55% of future allocation}
Vanguard Total International Stock Index Instl (VTSNX)- {10% of future allocation}
Vanguard Total Bond Market Index Inst- Bond Fund (VTIX) [.04 ER]- {10% of future allocation}
If this is your plan, you should reallocate what you currently have to this in addition to setting this for your contributions.

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ruralavalon
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Re: rebalancing future contributuis in employers 401k, 30yr old

Post by ruralavalon » Thu Oct 11, 2018 6:28 pm

wtrtwrclmbr wrote:
Thu Oct 11, 2018 1:42 pm
Does this look better...

Vanguard Small Cap Index Ins (VSCIX)- {25% of future allocation}
Vanguard Mid Cap Index Ins (VMCIX)- {0% of future allocation}
Vanguard Institutional Index Instl (VIIIX) [ER is .02]- {55% of future allocation}
Vanguard Total International Stock Index Instl (VTSNX)- {10% of future allocation}
Vanguard Total Bond Market Index Inst- Bond Fund (VTIX) [.04 ER]- {10% of future allocation}
Current 401k.
My suggestion is to use these funds in your current 401k:
1) 60%, Vanguard Institutional Index Fund Institutional (a S&P 500 index fund) (VIIIX) ER 0.02%;
2) 20%, Vanguard Total International Stock Index Fund Institutional (VTSNX) ER 0.09%; and
3) 20%, Vanguard Total Bond Market Index Fund Institutional (VBTIX) ER 0.03%.

For domestic stocks I suggest using a total stock market index fund where available; otherwise an S&P 500 index fund (such as Vanguard Institutional Index Fund Institutional, VIIIX, in your 401k) is good enough by itself for domestic stocks. "In a 401(k) plan with limited choices one might very well opt for an S&P 500 index fund to serve as the domestic stock component of a three-fund portfolio." Wiki article, Three-fund portfolio, "Other considerations".

An S&P 500 index fund covers 81% of the U.S. stock market investing in stocks of selected large-cap and mid-cap U.S. companies, and in the 26 years since the creation of the first total stock market index fund the total return of the two types of funds has been almost identical. Morningstar, "growth of $10k" graph, VTSAX vs VFIAX. In the first 10 years the S&P 500 fund did better, in the last 10 years the total market fund did better, and over the 26 years the total market fund gave a little more return (0.11% per year), but at the cost of a little more volatility (risk): nisiprius post, in the forum discussion "Exchanging the S&P 500 for the TSM". See also Allan Roth, CBS Moneywatch, "John C. Bogle on the S&P 500 vs. the Total Stock Market". So it seems that adding a little in mid/small cap stocks trying to mimic the holdings of a total stock market fund has historically made little difference in performance.

If you want to add Vanguard Small Cap Index Ins (VSCIX), then an 82/18 mix of S&P 500 and small-cap will approximate the content of a total stock market index fund. Wiki article, "Approximating total stock market". In my opinion this is not necessary, it is optional if you prefer to do this.


Other accounts.
You have excellent funds offered in your current 401k. You could consider a rollover of your account from your previous employer into your current 401k account.

It will probably be a good idea to rollover your American Funds Roth IRA to a low cost provider like Vanguard.

. . . . .

I suggest that you read one or two books on general investing. Wiki article, "Books: recommendations and reviews". When I first stated managing my own investments, I found this tutorial very helpful in learning investing terminology/jargon and some of the investing basics. Morningstar, "Investing Classroom". Also take a look at the Boglehead’s wiki, the "getting started" link I give below.

If you have any questions just ask.

I hope that this helps.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

wtrtwrclmbr
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Re: 30 yr old needing rebalance advice for current 401k

Post by wtrtwrclmbr » Mon Oct 15, 2018 2:26 pm

I had some time to sit down and make the changes to my current 401k. I do have our HR lady looking into rolling my previous employers funds into my current account, so hopefully that got the ball rolling anyhow. Ruralavalon, I appreciate the insight and I took you suggestion on funds, I understand them, and like the "simplistic approach". I did choose a "slightly riskier" path (some would call it) since retirement being quite a ways out yet...

1) 75%, Vanguard Institutional Index Fund Institutional (a S&P 500 index fund) (VIIIX) ER 0.02%;
2) 15%, Vanguard Total International Stock Index Fund Institutional (VTSNX) ER 0.09%; and
3) 10%, Vanguard Total Bond Market Index Fund Institutional (VBTIX) ER 0.03%.

Criticism? or OK?

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Garco
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Re: 30 yr old needing rebalance advice for current 401k

Post by Garco » Mon Oct 15, 2018 2:54 pm

After reading your earlier posts, and this end-result plan -- including moving funds from previous employer into current funds -- I think this is a good allocation for some period of time. The most important thing for you to build your retirement fund is TIME. Keep at it.

Added: When those babies arrive, look into establishing 529 plans to fund their college education. Start when they are babies.

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ruralavalon
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Location: Illinois

Re: 30 yr old needing rebalance advice for current 401k

Post by ruralavalon » Mon Oct 15, 2018 3:31 pm

wtrtwrclmbr wrote:
Mon Oct 15, 2018 2:26 pm
I had some time to sit down and make the changes to my current 401k. I do have our HR lady looking into rolling my previous employers funds into my current account, so hopefully that got the ball rolling anyhow. Ruralavalon, I appreciate the insight and I took you suggestion on funds, I understand them, and like the "simplistic approach". I did choose a "slightly riskier" path (some would call it) since retirement being quite a ways out yet...

1) 75%, Vanguard Institutional Index Fund Institutional (a S&P 500 index fund) (VIIIX) ER 0.02%;
2) 15%, Vanguard Total International Stock Index Fund Institutional (VTSNX) ER 0.09%; and
3) 10%, Vanguard Total Bond Market Index Fund Institutional (VBTIX) ER 0.03%.

Criticism? or OK?
I think that's within the range of what is reasonable, you are 10% in bonds and 17% of stocks in international stocks.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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