This is a traditional 401k account, and due to limited fund choices with reasonable expense ratios (for me that would be 0.2% or less), I am currently all-in on FXAIX with a very low ER (expense ratio) of 0.015%.
However, as I am approaching 50 and retirement is in the horizon (still about 10-12 years away), I am looking to diversify a bit.
Here are my current fund choices, filtered by ER of 0.25% or less.
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I am seeking your opinion(s) on how would you have invested if you were in my position. My target AA for this account is 80:20. I am not planning on using this money for another 20+ years (except for maybe Roth conversions post retirement, 10-12 years from now, when I will move it all into an IRA to have better investment options with lower expenses).
Here's how I see it -
The options are really limited when it comes to bonds, but I am debating between VFIJX and FXNAX.
From ER perspective, FXNAX is the obvious choice, but the LOF returns seem to be a bit higher for VFIJX. Also, is VFIJX considered safer since it is "Government" ? (I am new to bond investing, currently holding some in taxable, which I am learning is not a good idea due to tax impact).
On the equity side, FXAIX is great (from last decade or two recency bias perspective), but should I diversify a bit into FSMAX ? It seems the ER is a little higher and it will be riskier too since it is mid cap focused. The international fund FSPSX could also be an option, but the life of fund returns are less than half of that of FXAIX. I am not too inclined to diversify into that.
However, as I am approaching 50 and retirement is in the horizon (still about 10-12 years away), I am looking to diversify a bit.
Here are my current fund choices, filtered by ER of 0.25% or less.
I am seeking your opinion(s) on how would you have invested if you were in my position. My target AA for this account is 80:20. I am not planning on using this money for another 20+ years (except for maybe Roth conversions post retirement, 10-12 years from now, when I will move it all into an IRA to have better investment options with lower expenses).
Here's how I see it -
The options are really limited when it comes to bonds, but I am debating between VFIJX and FXNAX.
From ER perspective, FXNAX is the obvious choice, but the LOF returns seem to be a bit higher for VFIJX. Also, is VFIJX considered safer since it is "Government" ? (I am new to bond investing, currently holding some in taxable, which I am learning is not a good idea due to tax impact).
On the equity side, FXAIX is great (from last decade or two recency bias perspective), but should I diversify a bit into FSMAX ? It seems the ER is a little higher and it will be riskier too since it is mid cap focused. The international fund FSPSX could also be an option, but the life of fund returns are less than half of that of FXAIX. I am not too inclined to diversify into that.
Statistics: Posted by friluftsliv-roy — Tue Nov 05, 2024 4:29 pm — Replies 15 — Views 427