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  • Choosing Investment Funds

    I'm setting up my wife's retirement account and have access to these funds. For background, we are just starting out. Both 26yo, first year of working for both of us. These are the account she has access to through her employer. Would love to hear what accounts you would choose and why. Thanks!

     

    https://imgur.com/ZhirARR

    https://imgur.com/a/mdk11

  • #2
    Vanguard 500 index. Done. Its large/diversified and magnitudes cheaper than most of your options. You could do a bit of mid/small vanguard if you feel like it, same reasoning for fees.

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    • #3
      Agree. If you want to be fancy 80% s&p and 20% small and you got the whole market.

      Then put the rest of the funds you want in your accounts.

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      • #4
        What you have checked off is fine or go with @Zaphod and add Int'l. Too much hyperventiliation on this forum - and the internet, in general - over expense ratios. Low expense ratios do not a well-balanced or well-managed portfolio make. Start with the appropriate allocation and then focus on expense ratios, not the reverse. Rebalance annually.
        Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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        • #5
          @jfox: when you are being charged 8x the amount for an inferior product, it makes sense to hyperventilate. there is no reason to pick intl in that 401k.

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          • #6




            @jfox: when you are being charged 8x the amount for an inferior product, it makes sense to hyperventilate. there is no reason to pick intl in that 401k.
            Click to expand...


            Not sure how you can tell it is an inferior product unless you have done a heck of a lot of due diligence - based upon what?

            I happen to think your priorities are reversed. A tusk is not an elephant.
            Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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            • #7
              The Vanguard funds are fine.  I own a couple of them myself.

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              • #8
                Thank you all for the help!

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                • #9
                  You could do a lot worse than investing in Oakmark International. It beats the index handily over multiple time periods and has for multiple market cycles. I was an investor in Oakmark funds for the first ten years or so of my investing career, and it is one of the few active shops that gets it right, IMO.

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                  • #10
                    Some permanent life Insurance has cash value and Living Benefits.rider, not bad to use its leverage  multiple functions.

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                    • #11




                      Some permanent life Insurance has cash value and Living Benefits.rider, not bad to use its leverage  multiple functions.
                      Click to expand...


                      This reply couldn't have less to do with the investment options available through the retirement plan at the original poster's wife's place of employment.

                      You wouldn't perhaps sell whole life insurance, would you?  :evil:

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                      • #12
                        Not enough context to answer the question.  You need to let us know what your desired asset allocation is and what you have in all the other buckets in your portfolio.

                        its fine to want international and bonds, but this is probably the last place to buy those.  Much better choices are in a Roth IRA and taxable account, and probably your 401k too if you have one.

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                        • #13
                          So to give some more background: I'm attempting to set up a Roth IRA for my wife. The company matches up to 2.5% of her salary, which is roughly $1600 pre-tax. My understanding is that I have to pick out of these available funds for her Roth IRA, otherwise if we set one up on our own we would forgo the company's match -- which as I understand, would be unwise.

                          Am I comprehending this correctly? Is that how this sort of thing usually works? Or is there a way to set up a Roth IRA outside of the company and still receive the employer match?

                          Forgive me, I'm a complete novice when it comes to this stuff.

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                          • #14




                            So to give some more background: I’m attempting to set up a Roth IRA for my wife. The company matches up to 2.5% of her salary, which is roughly $1600 pre-tax. My understanding is that I have to pick out of these available funds for her Roth IRA, otherwise if we set one up on our own we would forgo the company’s match — which as I understand, would be unwise.

                            Am I comprehending this correctly? Is that how this sort of thing usually works? Or is there a way to set up a Roth IRA outside of the company and still receive the employer match?

                            Forgive me, I’m a complete novice when it comes to this stuff.
                            Click to expand...


                            No need to apologize. You're interested in learning and there are some very knowledgeable folks on here who are happy to share our insight.

                            I do have one question, though. Are you sure you're not talking about your wife participating in the Roth 401(k) option in her company 401(k) plan. That would make more sense, because her employer cannot contribute to her Roth IRA.

                            if that is the case, then the company match cannot go into the Roth 401(k) portion of the plan. Company matching funds would go into the regular pre-tax portion of the 401(k).

                            Depending upon your Modified Adjusted Gross Income, you and your wife would also be able to contribute to Roth IRAs (either through normal Roth contributions or through conversion through Backdoor Roth). This is in addition to the Roth 401(k) contribution limits.

                            Keep on learning and best of luck. If you read this forum no the blog regularly, you'll practically earn the equivalent of an MBA in personal finance.

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                            • #15
                              A lot of choices, most of them bad unfortunately in your wife's plan.  I would tend to stick with some combination of the three Vanguard index funds depending upon how aggressive of an asset allocation you desire.  Low cost and diversity will continue to be good guides long term.

                              Though I agree with Vagabond that Oakmark has pretty good international active funds.  International is also an important component within an equity asset allocation.  The question becomes; do you want to fulfill an international allocation via your wife's 401K and carry the higher expense ratio?  Alternatively, you can use other retirement investment vehicles (such as a Roth IRA) or and allocate investments to an international equity via Vanguard which is tied to an index (i.e. accepting the market risk and return) along with a lower expense ratio relative to the Oakmark international.

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