Retirement mix for VOO, VXF, VXUS
By - prettycode
Take some time to look into which class of shares your 401k is making available. Expense ratios can vary a fair amount within the same mutual fund depending on which shares your employer offers.
If one is better than the others, you could overweight that fund in your 401k and then buy the others in your taxable account.
For example, my 401k offerings are a steaming pile, except for offering institutional shares in the VXUS equivalent. So all my international exposure is in my 401k, and my taxable account is all US equity.
Aren’t those three funds everything you need? Lol
Looks fine. Could go 50:20:30.
There’s really no right answer here. As one poster said I would keep an eye on expense ratios and if there are big differences then focus on the lowest cost fund(s). Otherwise, there is nothing wrong with a 60-20-20 mix.
Also, note that fund selection has way less bearing on the eventual size of your nest egg than your investing *behavior*. The current 401k max contribution is $19,500 - this should be your eventual goal. Keep raising your contribution % every year and every time you get a raise in pay until you achieve that max.
I'd go 55/15/30, but I think you're winning no matter what.
I’m a federal gov employee, and we use the thrift savings plan (TSP) as our retirement savings plan. It’s basically a 401k, just for all the government employees. Anyway, the TSP uses target funds for your retirement timeframe. I’m 27 so I’m in the 2055 target fund. The standard mix is:
50% S&P 500
15% total US stock market other than the S&P
35% International stock index
I’m not saying the government knows best, but they’re definitely not hiring just any schmucks to manage the largest retirement plan in the country. The mix seems pretty intelligent to me.
Thank you for you reply! Are you saying that the mix you cited (50/15/35) is specifically for the 2055 target fund, or are you saying this is some other mix, like a default recommendation for people who are not in a target date fund?
This is the mix that all the TSP target funds start with, when the retirement timeframe is 30ish years off. As the retirement target gets closer, they taper down equity exposure and increase bond and cash percentage.
What is your age and what options you have in your portfolio? Knowing it will help in give you better advice.
Mid 30s. :)
What is your age and what options you have for 401K? Knowing it will help in give you better advice.
Doesn't VT cover essentially the exact same thing?
Unfortunately, VT, which is the ETF equivalent of the Vanguard Total World Stock Index Fund (VTWAX), is not an option in my 401k.
Right now I have 60% S&P large caps and 40% S&P emerging markets.
Should I reconsider?