Hello Forum!
I have an Employer sponsored 401k with limited fund options:
5 Domestic Equity Funds
3 International Equity Funds
3 US Bond Funds
1 MM Fund
Bunch of Target Date Funds
I also have the option to open a Self Directed Brokerage (SBD) Account, which I have not done yet in my 10+ years at the company.
Currently my allocation is:
63% US Large Cap Equity Index Fund ("The primary objective is to approximate the risk and return characteristics of the S&P 500 index")
Gross Expense Ratio 0.01%
17% US SMID Equity Index Fund ("The fund seeks investment results that correspond generally to the price and yield performance of the Russell 2500 Index.")
Gross Expense Ratio 0.03%
20% US Bond Index Fund ("The investment seeks to provide investment results approximating the overall performance of the securities included in the Barclays U.S. Aggregate Bond Index")
Gross Expense Ratio 0.03%
Should I utilize the SDB account option and move all my investments into VTSAX and VBTLX?
This was my plan recently, until I noticed the expense ratios of my current employer funds are actually lower then VTSAX 0.04% and VBTLX (0.05%) !!
I expect my employer funds can offer slightly lower expense ratios because the expected hold time for these funds are longer then VTSAX and VBTLX on average.
I want to ensure I am not missing any hidden benefits of an SDB. It would be nice to only need to rebalance 2 funds instead of 3, but if that is the only benefit, I may stay with my employer options.
Cheers
Larry
I have an Employer sponsored 401k with limited fund options:
5 Domestic Equity Funds
3 International Equity Funds
3 US Bond Funds
1 MM Fund
Bunch of Target Date Funds
I also have the option to open a Self Directed Brokerage (SBD) Account, which I have not done yet in my 10+ years at the company.
Currently my allocation is:
63% US Large Cap Equity Index Fund ("The primary objective is to approximate the risk and return characteristics of the S&P 500 index")
Gross Expense Ratio 0.01%
17% US SMID Equity Index Fund ("The fund seeks investment results that correspond generally to the price and yield performance of the Russell 2500 Index.")
Gross Expense Ratio 0.03%
20% US Bond Index Fund ("The investment seeks to provide investment results approximating the overall performance of the securities included in the Barclays U.S. Aggregate Bond Index")
Gross Expense Ratio 0.03%
Should I utilize the SDB account option and move all my investments into VTSAX and VBTLX?
This was my plan recently, until I noticed the expense ratios of my current employer funds are actually lower then VTSAX 0.04% and VBTLX (0.05%) !!
I expect my employer funds can offer slightly lower expense ratios because the expected hold time for these funds are longer then VTSAX and VBTLX on average.
I want to ensure I am not missing any hidden benefits of an SDB. It would be nice to only need to rebalance 2 funds instead of 3, but if that is the only benefit, I may stay with my employer options.
Cheers
Larry
Statistics: Posted by LarryDavid — Mon Mar 18, 2024 7:59 am — Replies 2 — Views 139