First Solo K ETF Selections

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Topic Author
RayRay1231
Posts: 4
Joined: Tue Mar 14, 2023 9:05 pm

First Solo K ETF Selections

Post by RayRay1231 »

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.
sycamore
Posts: 6309
Joined: Tue May 08, 2018 12:06 pm

Re: First Solo K ETF Selections

Post by sycamore »

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.
Topic Author
RayRay1231
Posts: 4
Joined: Tue Mar 14, 2023 9:05 pm

Re: First Solo K ETF Selections

Post by RayRay1231 »

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.
sycamore
Posts: 6309
Joined: Tue May 08, 2018 12:06 pm

Re: First Solo K ETF Selections

Post by sycamore »

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.
Topic Author
RayRay1231
Posts: 4
Joined: Tue Mar 14, 2023 9:05 pm

Re: First Solo K ETF Selections

Post by RayRay1231 »

Thank you! I’ll look into this
peteyboy
Posts: 402
Joined: Tue Feb 07, 2023 2:26 pm

Re: First Solo K ETF Selections

Post by peteyboy »

VTI (Total US Stock Index)
VXUS (Total International Stock Index)
BND (Total Bond Market Index)

https://www.bogleheads.org/wiki/Three-fund_portfolio
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