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Posted: 8/8/2013 7:21:10 AM EST
I started working at a new employer that offered a 401k in 2009. Since the economy sucked when I setup my 401k I opted to put 80% into VFINX and 20% in a money market account. I figured things were a crap shoot so I decided to go heavy on one fund but set aside a portion in the money market. Things have gone well since 2009 (up to $50k) and I am now feeling the need to look more into diversifying my portfolio.

Work offers the following funds, not a lot of options:
DHAMX - Large blend
VTSMX - Large blend
VFINX - 500 index
JAGIX - Large growth
TAVFX - International
ARTIX - International
HABDX - Bonds

I'm thinking of redistributing things to:
35% - VFINX
35% - VTSMX
25% - ARTIX
5% - money market

I don't feel I'm well informed about bonds so I shy away from them. I'm 30 yrs old, is it dumb put off bonds in the 401k for another 5-10 years and stay growth focused?

Thought, comments, suggestions? Thanks.
Link Posted: 8/8/2013 7:28:06 AM EST
You're 30, stay out of money markets. You have 35+ years to go. I would go some mix of index 500, growth and international.

I'm 53 and still 90% allocated to equities.
Link Posted: 8/8/2013 1:35:28 PM EST
I will not hold bonds of any type nor cash until around 8 years prior to my planned retirement. I am 100% in equities.

Here is where I am. I am very open to any suggestions on where I am going wrong.

10% in foreign large cap growth and value
55% US large cap growth and value weighted toward growth
30% US small cap growth and value weighted toward growth
5% specific sector which strikes my fancy

Too tired right now to plug the tickers in, but investigate morningstar.com and X-ray your hypothetical portfolio.

Good for you for doing what so many others cannot. In the years ahead you will look back and be so damn happy you were responsible. Damn happy because you will have everything you want and can relax instead of working anymore.
Link Posted: 8/9/2013 11:31:36 AM EST
VTSMX is vanguard's total stock market index, so by definition that is very well diversified on its own. If I had that option I would be in that for 100%. The expenses are also incredibly low for that fund, it is what I hold for my non-401k investment.

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Link Posted: 8/9/2013 12:21:06 PM EST
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Originally Posted By AJ_Engineer:
VTSMX is vanguard's total stock market index, so by definition that is very well diversified on its own. If I had that option I would be in that for 100%. The expenses are also incredibly low for that fund, it is what I hold for my non-401k investment.

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Yeah, I'm leaning more toward 100% VTSMX after more research. It appears it doesn't make a lot of sense to hold both VFINX and VTSMX since VTSMX is more broad than VFINX while the idea behind the is the same. The TAVFX international fund is 2-star rated while the ARTIX is 4-star rated however, ARTIX has 1.19% expenses which seems high. Thanks for support.
Link Posted: 8/25/2013 5:50:24 PM EST
Have you read the book "All About Asset Allocation"?
Link Posted: 8/26/2013 10:33:56 AM EST
VTSMX is a great place to start and get all of your domestic stock exposure.

Is ARTIX your only international available? Internationals are always a bit more expensive.

Link Posted: 8/27/2013 9:02:05 PM EST
Vanguard Total Stock Market Index Fund is designed to provide investors with exposure to the entire U.S. equity market, including small-, mid-, and large-cap growth and value stocks
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I personally like a international exposure, and it appears the ARTIX is more developed markets than emerging. Just my opinion.
Link Posted: 9/11/2013 5:30:08 PM EST
Stay away from the bond funds. Rates hit an all time low in April. Since then bonds have taken a nice hit and with talk of quantitative easing being tapered by the fed the market is trying to get in front of that formal announcement from Bernake and crew. You are young enough to be more aggressive with your investments (equities). Definitely diversify with a little euro exposure and maybe a little emerging markets.
Link Posted: 9/12/2013 3:34:55 AM EST
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Originally Posted By Gixxersixxer:


Yeah, I'm leaning more toward 100% VTSMX after more research. It appears it doesn't make a lot of sense to hold both VFINX and VTSMX since VTSMX is more broad than VFINX while the idea behind the is the same. The TAVFX international fund is 2-star rated while the ARTIX is 4-star rated however, ARTIX has 1.19% expenses which seems high. Thanks for support.
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Originally Posted By Gixxersixxer:
Originally Posted By AJ_Engineer:
VTSMX is vanguard's total stock market index, so by definition that is very well diversified on its own. If I had that option I would be in that for 100%. The expenses are also incredibly low for that fund, it is what I hold for my non-401k investment.

Posted Via AR15.Com Mobile


Yeah, I'm leaning more toward 100% VTSMX after more research. It appears it doesn't make a lot of sense to hold both VFINX and VTSMX since VTSMX is more broad than VFINX while the idea behind the is the same. The TAVFX international fund is 2-star rated while the ARTIX is 4-star rated however, ARTIX has 1.19% expenses which seems high. Thanks for support.


I'm very satisfied with Total Stock Market. I learned about it on www.bogleheads.org.
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