401k Mutual Fund Selection - Page 2 - TigerDroppings.com

Posted byMessage
vodkacop
LSU Fan
GOM
Member since Nov 2008
1945 posts

re: 401k Mutual Fund Selection


how about:
25 small cap
25 large cap
25 MED CAP
25 international cap






Back to top
Vols&Shaft83
Tennessee Fan
Member since Dec 2012
13085 posts
 Online 

re: 401k Mutual Fund Selection


quote:

25 small cap
25 large cap
25 MED CAP
25 international cap



Perfect






Back to top
jimbeam
USA Fan
University of LSU
Member since Oct 2011
30589 posts
 Online 

re: 401k Mutual Fund Selection


What age to add bonds?





Back to top
Vols&Shaft83
Tennessee Fan
Member since Dec 2012
13085 posts
 Online 

re: 401k Mutual Fund Selection


quote:

What age to add bonds?



Ask Benny






Back to top
  Replies (0)
Sigma
Michigan State Fan
Fairhope, AL
Member since Dec 2005
1897 posts
 Online 

re: 401k Mutual Fund Selection


quote:

Did you compare the returns for each of those? I'll save you the suspense, VTSMX wins in every time period....Considerably..... by at least 2% per year. My Roth funds and my SEP funds beat VTSMX over the last 1,3, 5, and 10 year periods, btw.


First you said target date funds have a lot of hands on management and that fees were higher. I gave you one example (of several) where that wasn't the case.

The returns are different because the funds have different goals.

The point is there are choices out there for people who would benefit from low fee, self adjusting funds. You may have funds that have had better historical returns, but that's not the whole picture.

quote:

Target-date funds, on the other hand, paint everyone of the same age with the same brush.


I don't think you've thought through the available selections, with Vanguard, for example. Just because you will retire in 25 years doesn't mean you need to choose the 2040 fund. Like you said, it depends on your risk tolerance.






Back to top
  Replies (0)
Sigma
Michigan State Fan
Fairhope, AL
Member since Dec 2005
1897 posts
 Online 

re: 401k Mutual Fund Selection


quote:

how about: 25 small cap 25 large cap 25 MED CAP 25 international cap


The Dave Ramsey plan. Good choice.






Back to top
Volvagia
LSU Fan
Baton Rouge
Member since Mar 2006
40544 posts

re: 401k Mutual Fund Selection


Except he probably shouldn't wait until all debt is resolved (with a self admitted inefficient method) before putting a penny aside for retirement.



And I did a quick google search...how is that his plan. I just see income percentages, not allocations.



This post was edited on 5/28 at 9:25 pm


Back to top
Sigma
Michigan State Fan
Fairhope, AL
Member since Dec 2005
1897 posts
 Online 

re: 401k Mutual Fund Selection


quote:

And I did a quick google search...how is that his plan. I just see income percentages, not allocations.


Are you talking about Dave's plan? The allocation is in his books and he mentions it during his radio show. I'll see if I can find a link.

Yeah, I wasn't commenting on when he should start funding retirement in relation to debt. It's hard to turn down that match at any point.

ETA: Here's a link. Although he calls them Growth and Income, Growth, Aggressive Growth, and International.

LINK



This post was edited on 5/29 at 2:54 am


Back to top
Vols&Shaft83
Tennessee Fan
Member since Dec 2012
13085 posts
 Online 

re: 401k Mutual Fund Selection


quote:

Yeah, I wasn't commenting on when he should start funding retirement in relation to debt. It's hard to turn down that match at any point. ETA: Here's a link. Although he calls them Growth and Income, Growth, Aggressive Growth, and International. 


Dave likes to say pause investing until you're out of debt. This is one of the only things I disagree with him on. If it's a debt that you're going to pay off in a reasonable amount of time with a low interest rate, like a car or a HELOC, go ahead and take the employers match and bust arse to pay off the debt before investing anymore.

However if it's high interest credit card or consumer debt, stop investing and pay that shite off. Nobody is going to invest well enough to beat 24.9% APR

As far as his allocation method goes, it's a simple, effective, and proven strategy for mutual fund investing.






Back to top
  Replies (0)
elposter
Alabama Fan
Member since Dec 2010
7887 posts

re: 401k Mutual Fund Selection


quote:

Target date funds have a lot of hands-on management. As a result, the expenses are higher than for standalone mutual funds. Guess who pays those high costs? You, that’s who. Since expense ratios are recognized as the best predictor of mutual fund performance, you shouldn’t take this point lightly.


I have been meaning to try and figure something out about this, so I will bring it here. As far as I can tell, I can't see any mutual fund expenses / costs broken out on my 401k statements and other information available to me. Is it possible that my company pays these costs or is more likely they are they just hidden so I can't really see them?

I don't know much about the technical working of mutual funds and the expense ratios of most of the available funds in my plan are about the same anyway so it really doesn't matter from a practical sense.






Back to top
  Replies (0)


Back to top