Hi, Bogleheads! I'm so grateful for you! Please forgive the long post, but I am quite knew to this and would very much appreciate your advice.
I am brand new to this site; just read the Bogleheads Guide to Investing. I recently started my small business and just opened a Solo 401k through Fidelity as I was told that Vanguard no longer offers Solo 401ks (but has outsourced it elsewhere and I read bad reviews on that company). My question is regarding fund selection. I am brand new to selecting funds. I have 2 small 401ks from prior jobs and 1 IRA (those funds were selected somehow by the employer at that time). I followed the advice of making a portfolio rebalancing spreadsheet and summarized my asset classes. I currently have 32% in US Stocks, 18% in International Stocks, 17% in Domestic Bonds, 5% in International Bonds, 27% in Cash/Money Market. Since I am 43 years old, planning to retire around age 67, I thought my desired percentages should be something like 30% US Stocks, 20% International Stocks, 40% Domestic Bonds, 5% International Bonds, 3% REITs, 2% Cash/Money Market/Other. I have 2 questions, please:
1. Do my goal percentages/asset allocation goals seem reasonable?
2. I read that instead of moving assets around, just add money to the new 401k in asset classes that need it, so to rebalance the portfolio. Given this, and if I were to stick with the allocation percentages above, I would, for example, need to add $1700 in international stocks and $20000 in domestic bonds, $2600 in REITs. How do I pick the right funds? I know you advocate for Index funds, but I don't really know how to compare them and would appreciate some advice on this. For example, FZILX has no fees, so seems attractive to me, but the lifetime return (the fund has existed <10 yrs) is only 4.97%. I can earn 5% in a high-yield savings account right now, so is this even worth it? VFWAX has a 10-yr return of even less - 4.13% and there is a $75 transaction fee and 0.11% fees (and not sure if any other fees - don't know how to check). Please help me understand how to know which funds to pick.
Thank you so much!!!
I am brand new to this site; just read the Bogleheads Guide to Investing. I recently started my small business and just opened a Solo 401k through Fidelity as I was told that Vanguard no longer offers Solo 401ks (but has outsourced it elsewhere and I read bad reviews on that company). My question is regarding fund selection. I am brand new to selecting funds. I have 2 small 401ks from prior jobs and 1 IRA (those funds were selected somehow by the employer at that time). I followed the advice of making a portfolio rebalancing spreadsheet and summarized my asset classes. I currently have 32% in US Stocks, 18% in International Stocks, 17% in Domestic Bonds, 5% in International Bonds, 27% in Cash/Money Market. Since I am 43 years old, planning to retire around age 67, I thought my desired percentages should be something like 30% US Stocks, 20% International Stocks, 40% Domestic Bonds, 5% International Bonds, 3% REITs, 2% Cash/Money Market/Other. I have 2 questions, please:
1. Do my goal percentages/asset allocation goals seem reasonable?
2. I read that instead of moving assets around, just add money to the new 401k in asset classes that need it, so to rebalance the portfolio. Given this, and if I were to stick with the allocation percentages above, I would, for example, need to add $1700 in international stocks and $20000 in domestic bonds, $2600 in REITs. How do I pick the right funds? I know you advocate for Index funds, but I don't really know how to compare them and would appreciate some advice on this. For example, FZILX has no fees, so seems attractive to me, but the lifetime return (the fund has existed <10 yrs) is only 4.97%. I can earn 5% in a high-yield savings account right now, so is this even worth it? VFWAX has a 10-yr return of even less - 4.13% and there is a $75 transaction fee and 0.11% fees (and not sure if any other fees - don't know how to check). Please help me understand how to know which funds to pick.
Thank you so much!!!
Statistics: Posted by soloinla — Sat Jul 20, 2024 7:52 pm — Replies 1 — Views 191