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Message
Where to invest (Vanguard)
Posted on 3/4/14 at 3:04 pm
Posted on 3/4/14 at 3:04 pm
preface: I know very little about investing....
I recently changed companies in January and just received my 401k savings check. My new company uses Vanguard and I need to pick where my money will be going. I previously had my money in an aggressive path and my ROI avg. around 25%-35% the last few years. Here are my options:
Vanguard Prime Money Market Fund
Vanguard Retirement Savings Trust IV
Vanguard Total Bond Market Index Fund
Vanguard Wellington Fund
Vanguard Institutional Index Fund
Vanguard PRIMECAP Fund
Vanguard REIT Index Fund
Vanguard Small-Cap Index Fund
Vanguard Mid-Cap Index Fund
Vanguard Explorer Fund
Vanguard Convertible Securities Fund
Dodge & Cox International Stock Fund
Dodge & Cox Stock Fund
I have NO idea what these funds do. I would like to keep it in an aggressive fund. It was previously allocated to a lifepath 2050, company stock, and large cap equity fund. what would you do.....balance is $44K
I recently changed companies in January and just received my 401k savings check. My new company uses Vanguard and I need to pick where my money will be going. I previously had my money in an aggressive path and my ROI avg. around 25%-35% the last few years. Here are my options:
Vanguard Prime Money Market Fund
Vanguard Retirement Savings Trust IV
Vanguard Total Bond Market Index Fund
Vanguard Wellington Fund
Vanguard Institutional Index Fund
Vanguard PRIMECAP Fund
Vanguard REIT Index Fund
Vanguard Small-Cap Index Fund
Vanguard Mid-Cap Index Fund
Vanguard Explorer Fund
Vanguard Convertible Securities Fund
Dodge & Cox International Stock Fund
Dodge & Cox Stock Fund
I have NO idea what these funds do. I would like to keep it in an aggressive fund. It was previously allocated to a lifepath 2050, company stock, and large cap equity fund. what would you do.....balance is $44K
This post was edited on 3/4/14 at 3:07 pm
3
Posted on 3/4/14 at 3:32 pm to dafuqusay
small and mid cap for an aggressive fund. May a small portion of total bond as well
wellington is a good balanced fund. believe it has higher loads though
wellington is a good balanced fund. believe it has higher loads though
Posted on 3/4/14 at 3:45 pm to dafuqusay
If you're young (under 40), I think it's OK to have all of your assets allocated to equities (stocks). I'm in my mid-30s and have enjoyed similar gains as you recently with 100% of my accounts in equities.
Just make sure you have a good mix of small cap and large cap funds in your account. Small cap is more aggressive/risky than large cap. Also allocate at least 5-10% to an international fund. I would avoid money market funds completely at this stage.
Just make sure you have a good mix of small cap and large cap funds in your account. Small cap is more aggressive/risky than large cap. Also allocate at least 5-10% to an international fund. I would avoid money market funds completely at this stage.
This post was edited on 3/4/14 at 3:59 pm
Posted on 3/4/14 at 4:13 pm to dafuqusay
You could have a lot worse choices in a 401k. To approximate your previous mix (sans company stock) you'd probably want some mix of
roughly in order from biggest holding to smallest. Pay attention to expense ratios/loads although with vanguard that is rarely an issue. I assume that since you were on lifepath 2050 you are not looking to retire in the next few years so you can bear to be a little more aggressive. But keep in mind that "aggressive" might also mean that one year you lose 40%.
quote:
Vanguard Institutional Index Fund
Vanguard Wellington Fund
Vanguard Mid-Cap Index Fund
Vanguard Small-Cap Index Fund
roughly in order from biggest holding to smallest. Pay attention to expense ratios/loads although with vanguard that is rarely an issue. I assume that since you were on lifepath 2050 you are not looking to retire in the next few years so you can bear to be a little more aggressive. But keep in mind that "aggressive" might also mean that one year you lose 40%.
Posted on 3/4/14 at 5:20 pm to jimbeam
quote:
wellington is a good balanced fund. believe it has higher loads though
Wellington is a great fund. I recommend it too, if you need a stock/bond balanced fund. Also, no Vanguard fund has a load.
Posted on 3/4/14 at 5:41 pm to Sigma
OP - you have access to the institutional fund? It shows a $5 million minimum to invest.
I would go 40% each mid and small. And 20% Wellington (balanced - 65% stocks)
I would go 40% each mid and small. And 20% Wellington (balanced - 65% stocks)
Posted on 3/4/14 at 5:58 pm to Sigma
you're right. I meant ER. 
Posted on 3/5/14 at 8:52 am to jimbeam
Thanks for the input eveyone
Posted on 3/5/14 at 10:24 am to jimbeam
quote:
wellington is a good balanced fund. believe it has higher loads though
I tried to buy some shares of this (VWELX) a couple weeks ago, and it is closed to new investors. I got VWINX instead which is basically the same thing except 40/60 stocks/bonds instead of 60/40.
Posted on 3/5/14 at 10:56 am to Rush2112
quote:
I got VWINX instead
I bought Wellesley recenetly too.
I have it in my Roth as an emergency fund. $3k minimum. FYI
This post was edited on 3/5/14 at 10:56 am
Posted on 3/5/14 at 12:47 pm to Oenophile Brah
So I ended up enrolling in the following:
40% small cap
40% mid cap
20% wellington.
Does that look like a good mix?
40% small cap
40% mid cap
20% wellington.
Does that look like a good mix?
Posted on 3/5/14 at 1:10 pm to dafuqusay
quote:
40% small cap 40% mid cap 20% wellington.
That should give you pretty solid diversification. Just under 10% in bonds.
Could have looked at the Total Stock Market Fund, but it's a $10k minimum. Don't remember if this was a Roth question.
Looks good overall.
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