Help w/ Work Funds and Where to Invest after Max?!

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Topic Author
johnnyblaze2013
Posts: 2
Joined: Thu Jan 31, 2019 5:02 pm

Help w/ Work Funds and Where to Invest after Max?!

Post by johnnyblaze2013 » Sun Feb 10, 2019 2:38 pm

Ciao guys! I'm currently maxing my 401k @ 19k and getting a 6% employer match.

As far as funds go, I'm currently in S&P 500 Index Fund, Russell Large Cap Value, Bond Fund Class A, Stable Value Fund. I'm ready to change the asset allocation, etc! Any insight/critique is greatly appreciated. I don't mind being ultra aggressive.

Choice of funds in the employer plan is lackluster but they do offer a self-directed brokerage which I transferred money too and I've made some minor investments. Since it is with TD Ameritrade, I'm keen on listening to where I should invest some of the money to maximize my returns! I'm allowed to transfer up to 50% of my total cash in my employer plan to TD Ameritrade.

Also, I can't contribute to an IRA for a tax break it seems due to my income being too high. What're my options? After I put 19k towards my 401k, I have 4k monthly auto investing into fidelity mutual funds.


Fund Name

BOND FUNDS

Bond Fund

STOCK FUNDS

S&P 500 Index Fund

US Structured Research Strat

Russell Large Cap Value Index

Russell Large Cap Growth Index

Russell Small Cap Index

Euro Pacific Growth Fund

EAFE Stock Index

LIFE PATH FUNDS

LifePath Retirement Income

LifePath 2020

LifePath 2025

LifePath 2030

LifePath 2035

LifePath 2040

LifePath 2045

LifePath 2050

LifePath 2055

LifePath 2060

REAL ASSET - DIVERSIFIED INFLATION PROTECTION

Real Asset Non-lending Series A

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Duckie
Posts: 6861
Joined: Thu Mar 08, 2007 2:55 pm
Location: California Bay Area

Re: Help w/ Work Funds and Where to Invest after Max?!

Post by Duckie » Sun Feb 10, 2019 8:08 pm

johnnyblaze2013, welcome to the forum.
johnnyblaze2013 wrote:Choice of funds in the employer plan is lackluster
They don't appear lackluster to me. Without knowing your plan's expense ratios the following appear to be the best options:
  • S&P 500 Index -- Large caps, 80% of US stocks
  • Russell Small Cap Index -- Small caps, 14% of US stocks
  • EAFE Stock Index -- Developed markets, 75% of international stocks
  • Bond Fund -- US bonds
but they do offer a self-directed brokerage which I transferred money too and I've made some minor investments.
What are the fees to use the SDB?
Also, I can't contribute to an IRA for a tax break it seems due to my income being too high. What're my options? After I put 19k towards my 401k, I have 4k monthly auto investing into fidelity mutual funds.
Contribute to a Roth IRA. If your income is too high even for that consider the Backdoor Roth method.

Topic Author
johnnyblaze2013
Posts: 2
Joined: Thu Jan 31, 2019 5:02 pm

Re: Help w/ Work Funds and Where to Invest after Max?!

Post by johnnyblaze2013 » Wed Feb 13, 2019 5:30 am

but they do offer a self-directed brokerage which I transferred money too and I've made some minor investments.
What are the fees to use the SDB?

Funds fees below...NO FEES for SDB w/ TD Ameritrade! Just your standard trade rates like a normal brokerage account with them to purchase ETFs/Mutuals/Securities

Fees and Expenses

Name / Type of Option Total Annual Operating Expenses Shareholder Type Fees / Fund Restrictions

As a % Per
$1,000
ASSET ALLOCATION
BlackRock LifePath Ind 2020 NL Fd F* 0.08% $0.80
BlackRock LifePath Ind 2025 NL Fd F* 0.08% $0.80
BlackRock LifePath Ind 2030 NL Fd F* 0.08% $0.80
BlackRock LifePath Ind 2035 NL Fd F* 0.08% $0.80
BlackRock LifePath Ind 2040 NL Fd F* 0.08% $0.80
BlackRock LifePath Ind 2045 NL Fd F* 0.08% $0.80
BlackRock LifePath Ind 2050 NL Fd F* 0.08% $0.80
BlackRock LifePath Ind 2055 NL Fd F* 0.08% $0.80
BlackRock LifePath Ind 2060 NL Fd F* 0.08% $0.80
BlackRock LifePath Ind Ret NL Fd F* 0.08% $0.80
BONDS
State Street U.S. Bond Index Fund A 0.03% $0.30
GLOBAL / INTERNATIONAL
American Funds EuroPacific R6 0.49% $4.90 If you transfer $5000 or more out of this American Fund you will not be permitted to transfer $5,000 or more back into the fund for 30 calendar days following the transfer out.
State Street International Index Fund A 0.055% $0.55
LARGE CAP GROWTH
State Street Russ Large Cap Growth Index Fund A 0.032% $0.32
LARGE CAP VALUE
State Street Russell Large Cap Value Index Fund A
0.032%
$0.32
State Street S&P 500 Index Fund A 0.013% $0.13
T.Rowe Price Structured Research Trust 0.28% $2.80
SMALL/MID/SPECIALTY
State Street Real Asset Fund A 0.22% $2.20
State Street Russell Small Cap Index Fund A 0.032% $0.32
STABILITY OF PRINCIPAL
Stable Value Investment Option† 0.33% $3.30 Money from the Stable Value Option must be transferred into one of the other core funds for at least 90 days before it can be transferred into a Self- Directed Brokerage Account. Moneys transferred out of the Stable Value Option may not be transferred into the Self-Directed Brokerage Account for at least 90 days.
*BlackRock Life Path investment fees include investment management fees at 0.07% plus admin fees capped at 0.01%. Note that admin fees may be under 0.01% depending on the individual vintage year.
†Stable Value Investment Option investment fees include investment management fees at 0.15% plus wrap fees at 0.18%. Current fund wrappers are Prudential, Transamerica, Voya Financial and Pacific Life.

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ruralavalon
Posts: 16521
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: Help w/ Work Funds and Where to Invest after Max?!

Post by ruralavalon » Wed Feb 13, 2019 10:51 am

Welcome to the forum :) .

It's great to see that you are contributing the employee maximum of $19k annually to your 401k.

You have some very nice funds offered in your 401k, you are fortunate. I don't see a big advantage to using the Self Directed Brokerage Account.

In your 401k I suggest using:
1) State Street S&P 500 Index Fund ER 0.03%;
2) State Street International Index Fund (developed markets only) ER 0.055%; and
3) State Street U.S. Bond Index Fund ER 0.03%.

Even though not eligible to deduct contributions to a traditional IRA, you may be eligible to contribute to a Roth IRA. Also consider a backdoor Roth IRA.

What is your tax bracket, both federal and state? What is your tax filing status?

Does your employer’s 401k plan allow non-Roth after-tax contributions?

Does your plan allow such contributions to be distributed while you are still working there (“in-service distribution”)?

Does your plan offer a Roth 401k option, and if so can the non-Roth after-tax contributions can be rolled over to the Roth 401k part of the plan (“in-plan Roth rollover”)?
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