Personal Investments • 401K Fund Selection

For Wife account, those are some of the best low cost options I've ever seen. You could go target date fund, Global stock + aggregate bonds, or S&P500, EAFE and Aggregate bonds.

For you, target date funds are a little high fee, but not miserable. You could set up a brokerage link, but that adds some complexity to your desired goal of "simple and set-it-and-forget-it". You have a cheap S&P500, but no good international fund, and a little bit expensive bond fund. You could just go S&P500 and the Baird bond fund and skip international. That would average out to pretty low fee.

Do you currently have money in these accounts?

Thank you for the recommendation on the fund selection. Those selection makes sense to me.

I actually wouldn’t mind setting up the BrokerageLink if it’ll allow me have better investment choices for total international and bond indexes. Would you suggest ETFs (like VXUS, BND) or Fidelity index funds (like FTIHX) on the brokeragelink side?

I’m currently in FSKAX (70%) and the international RERGX (30%) and my wife is 100% in the Global Stock.

So do you want to add bonds? Many would say you don't necessarily need them in your 30's. If not, you can probably just stay where you are.

Revisiting the fund options, where you have a .015% Total market option, that averages out the other funds pretty well over a whole portfolio. For example, your current portfolio is only 0.15% average fee between the two. If you did want to start sliding bonds in, 10% bonds in the mix would only be a 0.17% average fee. Even At 50% bonds in retirement it would only average to 0.23% fee. Pretty reasonable and a better option than the Target dates. And if half your money is in your wife's crazy low fee funds, you can cut that nearly in half as an average between the two.

I probably wouldn't even bother with the broker link. But if you do check the fees vs your balance to work out the effective fees you are paying. And no it doesn't matter if you go with vanguard ETF or fidelity funds. They both serve the same purpose.

I was a little hasty to say that RERGX was "no good international fund" option, because it looks like it has beat the cheap international indexes quite a bit over the last 15 years.

Statistics: Posted by the_wiki — Fri Feb 23, 2024 3:52 pm — Replies 9 — Views 628

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