Contribute to same funds each year in Roth?

[Jluke]

The Admiral Shares are the ones that you want. Of course you can pretty much only get them if you meet a certain minimum investment amount and your account is held at Vanguard, which it is.

If you start out in the Investor Shares class then the expense ratio will be higher. When you meet the minimum required investment amount your Investor Shares should be converted to Admiral Shares.

Yet another alternative to save on the expense ratio if you can't meet the Admiral Share requirement, you can purchase the ETF. for instance, VTI is the ETF for the Total Stock Market and the expense ratio is similar to the Admiral Shares.

The ETFs trade throughout the day so the price movement is up/down like a stock instead of a mutual fund that trades at the close of the trading day. The ETFs also do not pay out capital gains, etc that I think their mutual fund counterparts do (someone please correct me if I'm wrong; it's based on my ownership of VTI, VYM vs Wellesley Fund (VWINX)).

Disclaimer: I do not have an account with Vanguard.

[disneysteve]

The ETFs also do not pay out capital gains, etc that I think their mutual fund counterparts do

That is correct. ETF owners don't have to worry about short term capital gains as long as they continue to hold the shares. Capital gains are only triggered when you sell your shares.

ETFs do pay dividends, but so do mutual funds so really no difference there.

[Outdoorsygal]

Sorry to jump in here but just a quick question

If there is a minimum on S&P 500 Admiral shares, then how do I have $349 invested in my new 401k /Roth 401k?
Is it because it is coming out of my paycheck?
They seem to be taking over a week to post also, making me loose 6 weeks worth of interest per yr (it appears).
Their emails responses are vague. I'd expect posting at least 2 days prior to me getting my paper paycheck in the mail.
Especially since it is Paychex, our payroll company, handling the 401K's. Thanks anyone

[disneysteve]

If there is a minimum on S&P 500 Admiral shares, then how do I have $349 invested in my new 401k /Roth 401k?

Institutional rules are often different than individual account rules. The mutual fund company may give the plan preferred access to the better fund shares because they look at the overall account, not each individual user's personal account. They also know that within a 401k plan, there isn't likely to be as much turnover and there could be in personal accounts.

[~bs]

Institutional rules are often different than individual account rules. The mutual fund company may give the plan preferred access to the better fund shares because they look at the overall account, not each individual user's personal account. They also know that within a 401k plan, there isn't likely to be as much turnover and there could be in personal accounts.

that is correct. It is why 401k plans often offer the institutional funds with lower fees. This is as opposed to trying to invest in the fund through a normal brokerage account, you'd have to invest in the "retail" version of the fund.

[Like2Plan]

Sorry to jump in here but just a quick question

They seem to be taking over a week to post also, making me loose 6 weeks worth of interest per yr (it appears).
Their emails responses are vague. I'd expect posting at least 2 days prior to me getting my paper paycheck in the mail.
Especially since it is Paychex, our payroll company, handling the 401K's. Thanks anyone

I'll jump in on this one. It is frustrating that they take so long, but they have a little bit of leeway to deposit the funds in your account.

Here is the IRS guidance:

Currently, employers of all sizes must transmit employee contributions to pension plans as soon as they can reasonably be segregated from the general assets of the employer, but no later than the 15th business day of the month following the month in which contributions are received or withheld by the employer.

Time for depositing elective deferrals


safe harbor rule for employee contributions to plans with fewer than 100 participants.


The penalty (to the company) for not making deposits on time (as defined above) seems to be pretty light:
01(k) Plan Fix-It Guide - You haven't timely deposited employee elective deferrals

[Outdoorsygal]

Institutional rules are often different than individual account rules. The mutual fund company may give the plan preferred access to the better fund shares because they look at the overall account, not each individual user's personal account. They also know that within a 401k plan, there isn't likely to be as much turnover and there could be in personal accounts.

Thank you Steve

[Outdoorsygal]

I'll jump in on this one. It is frustrating that they take so long, but they have a little bit of leeway to deposit the funds in your account.

Here is the IRS guidance:

Currently, employers of all sizes must transmit employee contributions to pension plans as soon as they can reasonably be segregated from the general assets of the employer, but no later than the 15th business day of the month following the month in which contributions are received or withheld by the employer.

Time for depositing elective deferrals


safe harbor rule for employee contributions to plans with fewer than 100 participants.


The penalty (to the company) for not making deposits on time (as defined above) seems to be pretty light:
01(k) Plan Fix-It Guide - You haven't timely deposited employee elective deferrals

Good info to know. This tells me nothing will likely change then

[cologero]

When you are first starting out, the allocation isn't so important because the dollar amounts are minimal. Also, due to fund minimums, you are somewhat limited in your ability to diversify from day one. Once you start building up your portfolio, however, it's time to take a closer look.

This is how things look for me overall. Do I need more bonds?

ROTH IRA: - I max out each year
- $20,000 S&P 500 Index Fund Admiral Shares (VFIAX)
- $5,000 Intermediate Term Investment Grade Fund (VFICX)

Traditional IRA - not contributing/it's rolled over from previous employer
- $10,000 not exactly sure what it's in. Description says 'S&P 4'

401K - I'm contributing bi-weekly with the following allocations (note: I have no front-end load fees):
- $37,000

BALANCED:
FRANKLIN INCOME R

CASH EQUIVALENT:
INVESCO GOVNMNT MNY MRKET CR A

EQUITY:
AMERICAN FUNDS EUROPACIFIC R2 - 30%
BLACKROCK INTL OPPORTUNITIES A
COLUMBIA LARGE CP GRWTH III A
COLUMBIA MID CAP VALUE A - 30%
FRANKLIN MUTUAL GLB DISCOVY C - 15%
INVESCO SELECT COMPANIES A
KEELEY SMALL CAP VALUE A - 10%
OPP DEVELOPING MARKETS R
PIONEER DISCIPLINED VALUE C - 15%
THORNBURG CORE GROWTH R3

FIXED INCOME:
INVESCO CORE PLUS BOND A
INVESCO SHT DURTN INFTN PRT A
PIONEER GLOBAL HIGH YIELD C
TEMPLETON GLOBAL BOND C

OTHER:
AGGRESSIVE MODEL
GROWTH AND INCOME MODEL
GROWTH MODEL
INCOME MODEL

[Like2Plan]

This is how things look for me overall. Do I need more bonds?

ROTH IRA: - I max out each year
- $20,000 S&P 500 Index Fund Admiral Shares (VFIAX)
- $5,000 Intermediate Term Investment Grade Fund (VFICX)

Traditional IRA - not contributing/it's rolled over from previous employer
- $10,000 not exactly sure what it's in. Description says 'S&P 4'

401K - I'm contributing bi-weekly with the following allocations (note: I have no front-end load fees):
- $37,000

BALANCED:
FRANKLIN INCOME R

CASH EQUIVALENT:
INVESCO GOVNMNT MNY MRKET CR A

EQUITY:
AMERICAN FUNDS EUROPACIFIC R2 - 30%
BLACKROCK INTL OPPORTUNITIES A
COLUMBIA LARGE CP GRWTH III A
COLUMBIA MID CAP VALUE A - 30%
FRANKLIN MUTUAL GLB DISCOVY C - 15%
INVESCO SELECT COMPANIES A
KEELEY SMALL CAP VALUE A - 10%
OPP DEVELOPING MARKETS R
PIONEER DISCIPLINED VALUE C - 15%
THORNBURG CORE GROWTH R3

FIXED INCOME:
INVESCO CORE PLUS BOND A
INVESCO SHT DURTN INFTN PRT A
PIONEER GLOBAL HIGH YIELD C
TEMPLETON GLOBAL BOND C

OTHER:
AGGRESSIVE MODEL
GROWTH AND INCOME MODEL
GROWTH MODEL
INCOME MODEL

It looks like you are getting closer to the format in this link

https://www.bogleheads.org/forum/viewtopic.php?f=1&t=6212

What is missing is key information like your age, percentages of investments, expense ratios (and stock tickers of your investments would be very helpful). That way it would be easier to look up what you have (and what it is comprised of).

There are all sorts of suggestions of stock to bond ratio, but then you have to decide what is your risk tolerance. The rule of thumb might give you a starting point, but it is a very personal decision.

[~bs]

traditional - normally when you do a roll over to a brokerage firm, I though only the cash transfers. You should probably try to see what's in this fund.

it's too bad, but it looks like your 401k plan doesn't have ultra low fee funds. If you plan on working for the company for the long term, might be worthwhile to petition your management to include at least a s&p500 vanguard fund.

[disneysteve]

Traditional IRA - not contributing/it's rolled over from previous employer
- $10,000 not exactly sure what it's in. Description says 'S&P 4'

When you opened that account, you had to choose your investment. If you don't recall what you chose, you should definitely find out. Check the statement or log in to the account. It should have the fund name and symbol so you can look it up.

[msomnipotent]

All of the funds listed under equity are heavily invested in financials, even the international one. Are you comfortable with that? I like VFIAX and I absolutely hate KSCVX, but that's just me. I see no reason to put money in a fund that has high fees and below average returns. Have you heard of Morningstar? They do a pretty good job of explaining what is in your funds.

http://www.morningstar.com/funds/XNAS/VFIAX/quote.html

http://www.morningstar.com/funds/xnas/vficx/quote.html

http://www.morningstar.com/funds/XNAS/RERBX/quote.html

http://www.morningstar.com/funds/XNAS/CMUAX/quote.html

http://www.morningstar.com/funds/XNAS/TEDSX/quote.html

http://www.morningstar.com/funds/xnas/kscvx/quote.html

http://www.morningstar.com/funds/XNAS/CVCFX/quote.html

It doesn't look like you have a ton of good options to choose from. Personally, I would have picked (from small holdings to large):

http://www.morningstar.com/funds/XNAS/ODVNX/quote.html

http://www.morningstar.com/funds/XNAS/BISIX/quote.html

http://www.morningstar.com/funds/xnas/atiax/quote.html

http://www.morningstar.com/funds/XNAS/CMUAX/quote.html

http://www.morningstar.com/funds/XNAS/TEDSX/quote.html

I would probably do 10%, 10%, 10%, 25%, 45%, with no bonds, but that is just me. My only qualifications to give this advice is my ability to read and I stayed at a Holiday Inn. I'm also waiting for my coffee to kick in, so you might want to DYODD.

[cologero]

Thank you everyone! I'm 38, so I've been a bit aggressive with stocks...plus I'm way behind on retirement savings.

In looking over the Vanguard recommendations for my age/tolerance/goals, it looks like I may need to move up to a third of my Roth to International stocks. This obviously doesnt take into account my 401K allocation. Any international fund recomendations?

I did have a question though. Is it going to negatively impact my compounding interest if I have 3-4 funds with small balances? vs just growing my S&P 500/Admiral Shares?

[disneysteve]

Any international fund recomendations?

Keep it simple: VTIAX (10K minimum, otherwise VGTSX)