Rate/critique my 401k allocations

The allocation depends on your tolerance for pain and your age

Age/How long till retirement are key factors you left out.

Totally my bad for omitting that. I’m 41. Hoping to retire at 65.

quote:

---

VTSAX, VBTLX, and VTIAX.........and you're done

---

True story

At 41 years of age I would have at least 20% (but probably closer to 30%) in some type of total bond index fund and 5% in an alternative like a REIT index fund.

On first glance there seems to be a lot of redundancy with the S/P 500 and large cap blend. I would just pick one or they other. Their returns aren’t likely significantly different. I would also recommend more of an international allocation like vanguard or fidelity total international index funds (closer to 20%).

You could achieve essentially the same results with much less risk (more diversification) with the following.

40% Total US stock market index fund (or S/P 500 index fund)
20% Total international stock market fund
25% Total Bond index fund
5% Mid-cap value index
5% Small-cap value index
5% REIT index


Just my 2 cents. What you have is reasonable for an aggressive portfolio. But it’s too risky and not as well diversified as it could be in my opinion. However, if you maintain a buy and hold at this allocation for the next 25 years, you’ll probably be fine. Focus on low expense ratios. Make a plan and stick with it through thick and thin.

they might have similar investments but they could have wildly different IM principles. And in the long run, prices of investments will be the only thing that matter but in the short run.....

Know your prospectus and what your IMs policies are. That’s my only advice.