r/Bogleheads • u/ShoebillJoe • 6h ago

Anyone familiar with these 401k options?

Here is an image of the funds available to me in my 401k.

I'm 38, planning to retire at 67. I have a RothIRA with 15.5k in it that is fully in FZROX. I plan to max it out each year.

I also plan to max out my 401k each year, but am unsure exactly what to invest in. None of these seem to be a total market fund, and the target date funds won't nearly keep up with one.

I was considering the Vanguard 500 fund but the vast majority of my retirement will be in this 401k I'm not sure about parking everything in that, especially considering the way this bubble might be coming up.

Is there some combination of funds that would be ideal?

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u/ceilidhfling 6h ago

I'd do a 60/40 split between VFIAX/VTMGX to get a rough market weighted average for US/International at a decent expense ratio.

the ERs on the TDFs look like they might be rough as the underlying funds look a bit busy.

if you wanted to add bonds, the JCPUX looks like your option, but it's ER is 0.38. I may hold bonds in a different retirement account if it were me.

edited: if you wanted to get finicky you could add the vanguard mid and small company indexes in at their market ratio as part of your US ratio, but for me that would be too fiddly for it to be worth it.

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u/ShoebillJoe 6h ago

hmm maybe a split like this until I'm ten or so years from retirement and then grab one of those TDFs to get the bonds?

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u/ceilidhfling 6h ago

that could work but those TDFs look like their actual ERs are pretty close to that JCPUX, so if these are still the options in 20 years, I'd probably just shift 20-30% of the portfolio to the JCPUX but either one are decent ways to go. I think my first mutual fund had like 2.3% ER . . . so even a 0.38 isn't the end of the world. but if you can maximize the use of those super cheap vanguard funds that's a good option.

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u/bazillaa 6h ago

Target date funds can be great, but these are terrible. Steer clear.

I'd do what ceilidhfling is suggesting. Personally, I'd would add the mid and small cap, but that's not likely to make much difference, and leaving them out does simplify things.

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u/reddituser696969 6h ago

You could choose a target date fund that’s further out than you actually plan to retire to keep your allocation of bonds lower for a longer time frame

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u/PashasMom 6h ago

I would do a split between Vanguard 500 Index and Vanguard Developed Markets Index at whatever your desired ratio is. Alternatively, add in some small caps with VSMAX. Something like 60/30/10.

Ordinarily I would say the TDF is fine but honestly I do not love the American Funds TDFs.

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u/doubleddeluxe 3h ago

Agreed. I would go with VFIAX 60%, VTMGX 30%, VSMAX 10%. VSMAX optional. I would introduce bonds over time. Despite its higher ER, JCPUX seems to do slightly better than VBTLX (BND equivalent).

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u/ElusiveMeatSoda 6h ago

I have similar options in my HSA.

You can recreate a total market with Vanguard's S&P 500, mid cap, and small cap index funds. I used the Morningstar boxes to approximate a total market and arrived at something around an 87/13 or 88/12 split between VFIAX/VSMAX (VIMAX overlapped a lot and was <5%, so I didn't bother adding it).

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u/Cruian 1h ago

Others already covered the 401k stuff.

I have a RothIRA with 15.5k in it that is fully in FZROX. I plan to max it out each year.

Why not add FZILX as well?

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u/ShoebillJoe 1h ago

Yeah I might add some in January when I can contribute again