First Solo K ETF Selections
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- Posts: 4
- Joined: Tue Mar 14, 2023 9:05 pm
First Solo K ETF Selections
I’m contributing to my Solo-K for the first time and wondering if you would have recommendations for 3-5 ETFs that I should dollar cost average into over the next 6 months? Funds are in account. I’m looking for a good healthy mix of broader market ETFs that you would recommend and would diversify my investments.
Re: First Solo K ETF Selections
What's in your current portfolio? Maybe it's diversified enough already? A single broad stock market fund could be all you need, but maybe you want to diversify beyond stocks?
The Bogleheads approach is to first figure out your asset allocation (mix of stocks, bonds and/or cash like 80/15/5 or 60/40/0) that's appropriate for your goals and your personal risk tolerance. Once you know your target AA, picking the individual funds or ETFs is the easy part -- use low cost passive funds.
The Bogleheads approach is to first figure out your asset allocation (mix of stocks, bonds and/or cash like 80/15/5 or 60/40/0) that's appropriate for your goals and your personal risk tolerance. Once you know your target AA, picking the individual funds or ETFs is the easy part -- use low cost passive funds.
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- Posts: 4
- Joined: Tue Mar 14, 2023 9:05 pm
Re: First Solo K ETF Selections
Well, ha, my Roth, SEP, 401k and taxable account are all with a financial advisor charging .65%. This is my first breakaway, and I’d like to bring more over and exit the AUM scene. Easier said than done I suppose.
Re: First Solo K ETF Selections
Good to hear you're breaking up with the advisor
Assuming your solo 401k is intended for your retirement goal that's 10+ years away, I suggest starting with Vanguard Total Stock Market Index fund VTI. It's not for people who think they can beat the market
In addition to the Total Stock fund, I also invest in small-cap value (Vanguard's VBR). Instead of a market-cap allocation of 70/20/10 (large/medium/small), my portfolio is tilted to roughly 50/25/25. But my portfolio also has greater price volatility and I've had to live with years of underperformance - it's not for everyone.
Assuming your solo 401k is intended for your retirement goal that's 10+ years away, I suggest starting with Vanguard Total Stock Market Index fund VTI. It's not for people who think they can beat the market
In addition to the Total Stock fund, I also invest in small-cap value (Vanguard's VBR). Instead of a market-cap allocation of 70/20/10 (large/medium/small), my portfolio is tilted to roughly 50/25/25. But my portfolio also has greater price volatility and I've had to live with years of underperformance - it's not for everyone.
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- Posts: 4
- Joined: Tue Mar 14, 2023 9:05 pm
Re: First Solo K ETF Selections
Thank you! I’ll look into this
Re: First Solo K ETF Selections
VTI (Total US Stock Index)
VXUS (Total International Stock Index)
BND (Total Bond Market Index)
https://www.bogleheads.org/wiki/Three-fund_portfolio
VXUS (Total International Stock Index)
BND (Total Bond Market Index)
https://www.bogleheads.org/wiki/Three-fund_portfolio