Employer t401k was auto switched to a different fund? Please help?

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Employer t401k was auto switched to a different fund? Please help?

Post by Vanguard User »

Hello. I work for a big corp and have a traditional 401k through Fidelity but the funds I was invested in was changed on 8/8/22.

Old investment: Fidelity® 500 Index Fund Ticker: FXAIX Gross Expense Ratio: 0.0150% (85% allocation).

Old investment: Vanguard Small-Cap Index Fund Institutional Plus Shares Ticker: VSCPX Gross Expense Ratio: 0.03% (15% allocation).

New investment: Spartan® 500 Index Pool Class F Ticker: N/A Gross Expense Information: 0.0075% (85% allocation).

New investment: Small Cap Index Fund Ticker: N/A Gross Expense Information: 0.028% (15% allocation).

It picked the closest fund to put in from old to new and does have a lower ER.

Should I stick to these funds and allocation?

I chose the old 2 funds and allocations based on someone recommending on another forum that it closely matched VTSAX.

I am a 45 years old male and want to retire between 55-60. I have already made a comprehensive thread in this forum.

My history:

viewtopic.php?t=352302
Last edited by Vanguard User on Fri Mar 24, 2023 6:00 pm, edited 1 time in total.
placeholder
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by placeholder »

It makes sense for them to get new versions of the funds with lower cost but as for whether you should use those it's difficult to saw without more information: viewtopic.php?t=6212
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by arcticpineapplecorp. »

that's fine. you can check for comparison under Approximating Total Stock Market

some might say S&P500 (by itself) would be fine since the returns of the two are very similar (back to 1992 when total stock market launched):

Image

source:
https://www.portfoliovisualizer.com/bac ... tion3_2=15

and you'll have to rebalance periodically with two funds which you don't have to do with one S&P500 index fund. But it's entirely your choice. I do something similar to what you do in my 457b (along with holding international/eafe, so I have three funds in my Roth 457b, S&P500/Small and Mid cap/EAFE). Depends on how much work you want to do.
It's hard to accept the truth when the lies were exactly what you wanted to hear. Investing is simple, but not easy. Buy, hold & rebalance low cost index funds & manage taxable events. Asking Portfolio Questions | Wiki
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by Vanguard User »

placeholder wrote: Thu Mar 23, 2023 9:13 pm It makes sense for them to get new versions of the funds with lower cost but as for whether you should use those it's difficult to saw without more information: viewtopic.php?t=6212
I already posted that thread.
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by Vanguard User »

arcticpineapplecorp. wrote: Thu Mar 23, 2023 9:18 pm that's fine. you can check for comparison under Approximating Total Stock Market

some might say S&P500 (by itself) would be fine since the returns of the two are very similar (back to 1992 when total stock market launched):

Image

source:
https://www.portfoliovisualizer.com/bac ... tion3_2=15

and you'll have to rebalance periodically with two funds which you don't have to do with one S&P500 index fund. But it's entirely your choice. I do something similar to what you do in my 457b (along with holding international/eafe, so I have three funds in my Roth 457b, S&P500/Small and Mid cap/EAFE). Depends on how much work you want to do.
So just do Spartan® 500 Index Pool Class F Ticker: N/A Gross Expense Information: 0.0075% at 100%?

I also have FZROX 100% in my Roth IRA as well as 100% VTSAX in my taxable account. Why was I recommended 15% with the other fund?

Absolutely not a fan of rebalancing. If 1 fund is enough then why not?
placeholder
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by placeholder »

Vanguard User wrote: Thu Mar 23, 2023 10:04 pm
placeholder wrote: Thu Mar 23, 2023 9:13 pm It makes sense for them to get new versions of the funds with lower cost but as for whether you should use those it's difficult to saw without more information: viewtopic.php?t=6212
I already posted that thread.
I don't see it and in fact I don't see any links from you so what are you talking about?
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by the_wiki »

Vanguard User wrote: Thu Mar 23, 2023 8:57 pm Hello. I work for a big corp and have a traditional 401k through Fidelity but the funds I was invested in was changed on 8/8/22.

Old investment: Fidelity® 500 Index Fund Ticker: FXAIX Gross Expense Ratio: 0.0150% (85% allocation).

Old investment: Vanguard Small-Cap Index Fund Institutional Plus Shares Ticker: VSCPX Gross Expense Ratio: 0.03% (15% allocation).

New investment: Spartan® 500 Index Pool Class F Ticker: N/A Gross Expense Information: 0.0075% (85% allocation).

New investment: Small Cap Index Fund Ticker: N/A Gross Expense Information: 0.028% (15% allocation).

It picked the closest fund to put in from old to new and does have a lower ER.

Should I stick to these funds and allocation?

I chose the old 2 funds and allocations based on someone recommending on another forum that it closely matched VTSAX.

I am a 45 years old male and want to retire between 55-60. I have already made a comprehensive thread in this forum.
If you wanted to match what you had, you have done that, but with very slightly lower fees. 85% S&P500 and 15% Small cap does pretty much match VTSAX.

Many would say at 45 years of age you may want to add bonds, and many would say you should have some international stock. But that is up to you and your risk tolerance.
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by Vanguard User »

placeholder wrote: Thu Mar 23, 2023 10:34 pm
Vanguard User wrote: Thu Mar 23, 2023 10:04 pm
placeholder wrote: Thu Mar 23, 2023 9:13 pm It makes sense for them to get new versions of the funds with lower cost but as for whether you should use those it's difficult to saw without more information: viewtopic.php?t=6212
I already posted that thread.
I don't see it and in fact I don't see any links from you so what are you talking about?
viewtopic.php?t=352302
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by Vanguard User »

the_wiki wrote: Thu Mar 23, 2023 10:40 pm
Vanguard User wrote: Thu Mar 23, 2023 8:57 pm Hello. I work for a big corp and have a traditional 401k through Fidelity but the funds I was invested in was changed on 8/8/22.

Old investment: Fidelity® 500 Index Fund Ticker: FXAIX Gross Expense Ratio: 0.0150% (85% allocation).

Old investment: Vanguard Small-Cap Index Fund Institutional Plus Shares Ticker: VSCPX Gross Expense Ratio: 0.03% (15% allocation).

New investment: Spartan® 500 Index Pool Class F Ticker: N/A Gross Expense Information: 0.0075% (85% allocation).

New investment: Small Cap Index Fund Ticker: N/A Gross Expense Information: 0.028% (15% allocation).

It picked the closest fund to put in from old to new and does have a lower ER.

Should I stick to these funds and allocation?

I chose the old 2 funds and allocations based on someone recommending on another forum that it closely matched VTSAX.

I am a 45 years old male and want to retire between 55-60. I have already made a comprehensive thread in this forum.
If you wanted to match what you had, you have done that, but with very slightly lower fees. 85% S&P500 and 15% Small cap does pretty much match VTSAX.

Many would say at 45 years of age you may want to add bonds, and many would say you should have some international stock. But that is up to you and your risk tolerance.
The system automatically did that match. I am not emotional when it comes to bear market so I am ok with drops like 2008 and 2020. Why do I need Bonds or international stocks?
Last edited by Vanguard User on Fri Mar 24, 2023 12:30 am, edited 1 time in total.
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by retired@50 »

Vanguard User wrote: Thu Mar 23, 2023 11:07 pm
The system automatically did that match. I am not emotional when it comes to bear market so I am ok with not drops like 2008 and 2020. Why do I need Bonds or international stocks?
See the video linked in the first post of the thread below for some reasons why you should consider adding international stocks to your portfolio.

Link: viewtopic.php?t=400140

Regards,
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by Vanguard User »

retired@50 wrote: Thu Mar 23, 2023 11:37 pm
Vanguard User wrote: Thu Mar 23, 2023 11:07 pm
The system automatically did that match. I am not emotional when it comes to bear market so I am ok with not drops like 2008 and 2020. Why do I need Bonds or international stocks?
See the video linked in the first post of the thread below for some reasons why you should consider adding international stocks to your portfolio.

Link: viewtopic.php?t=400140

Regards,
Isn’t the US market the most stable? International would be more towards speculative?
placeholder
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by placeholder »

Vanguard User wrote: Thu Mar 23, 2023 11:02 pm
placeholder wrote: Thu Mar 23, 2023 10:34 pm
Vanguard User wrote: Thu Mar 23, 2023 10:04 pm
placeholder wrote: Thu Mar 23, 2023 9:13 pm It makes sense for them to get new versions of the funds with lower cost but as for whether you should use those it's difficult to saw without more information: viewtopic.php?t=6212
I already posted that thread.
I don't see it and in fact I don't see any links from you so what are you talking about?
viewtopic.php?t=352302
Then you should have made this part of the that thread because obviously the people wouldn't necessarily know about the other one.
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by Vanguard User »

placeholder wrote: Fri Mar 24, 2023 12:36 am
Vanguard User wrote: Thu Mar 23, 2023 11:02 pm
placeholder wrote: Thu Mar 23, 2023 10:34 pm
Vanguard User wrote: Thu Mar 23, 2023 10:04 pm
placeholder wrote: Thu Mar 23, 2023 9:13 pm It makes sense for them to get new versions of the funds with lower cost but as for whether you should use those it's difficult to saw without more information: viewtopic.php?t=6212
I already posted that thread.
I don't see it and in fact I don't see any links from you so what are you talking about?
viewtopic.php?t=352302
Then you should have made this part of the that thread because obviously the people wouldn't necessarily know about the other one.
That thread was posted way before this change.
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by oldcomputerguy »

The earlier thread was asking a different question than the one asked here. Please keep the discussion centered on the question above (comparing the old and new investment options).
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by tashnewbie »

Looks like the 401k passed a particular threshold of plan assets to become eligible to use Collective Investment Trusts. They are similar to mutual funds but they don't have a ticker, are usually offered at lower cost, and are only available to investors in certain qualified plans.

Check the wiki about CITs if you want to learn more.

If you were happy with your original allocation, you have the same allocation with these new funds. Up to you whether you want to make any adjustments. You haven't provided any context about your overall portfolio in this thread, so unknown whether other changes are necessary.
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by arcticpineapplecorp. »

Vanguard User wrote: Thu Mar 23, 2023 10:07 pm
arcticpineapplecorp. wrote: Thu Mar 23, 2023 9:18 pm that's fine. you can check for comparison under Approximating Total Stock Market

some might say S&P500 (by itself) would be fine since the returns of the two are very similar (back to 1992 when total stock market launched):

Image

source:
https://www.portfoliovisualizer.com/bac ... tion3_2=15

and you'll have to rebalance periodically with two funds which you don't have to do with one S&P500 index fund. But it's entirely your choice. I do something similar to what you do in my 457b (along with holding international/eafe, so I have three funds in my Roth 457b, S&P500/Small and Mid cap/EAFE). Depends on how much work you want to do.
So just do Spartan® 500 Index Pool Class F Ticker: N/A Gross Expense Information: 0.0075% at 100%?

I also have FZROX 100% in my Roth IRA as well as 100% VTSAX in my taxable account. Why was I recommended 15% with the other fund?

Absolutely not a fan of rebalancing. If 1 fund is enough then why not?
1. you were not recommended 15% with the other fund, per se. Your fund replaced the old fund you had held. Usually you'd get literature when a different provider and/or different fund choices are being offered and often the new provider (or same provider offering different funds) will tell you you will be automatically enrolled or will need to re-establish your choices. This happened to me (and also my mom) a few years ago when Empower either took over for Great West or Empower offered different funds (can't remember). Both of us had to actively change or understand what funds we'd be automatically enrolled into. Make sense/

2. whether you should "just do Spartan 500..." or not can not be known in advance. I showed you the long term chart to show that in the past both options should perform similarly enough because they're 80% similar. Whether one does better or worse over YOUR particular timeframe can not be known now. You'll have to do what you feel is best. I pesonally don't think there's anything wrong with either option.
It's hard to accept the truth when the lies were exactly what you wanted to hear. Investing is simple, but not easy. Buy, hold & rebalance low cost index funds & manage taxable events. Asking Portfolio Questions | Wiki
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by arcticpineapplecorp. »

Vanguard User wrote: Fri Mar 24, 2023 12:31 am
retired@50 wrote: Thu Mar 23, 2023 11:37 pm
Vanguard User wrote: Thu Mar 23, 2023 11:07 pm
The system automatically did that match. I am not emotional when it comes to bear market so I am ok with not drops like 2008 and 2020. Why do I need Bonds or international stocks?
See the video linked in the first post of the thread below for some reasons why you should consider adding international stocks to your portfolio.

Link: viewtopic.php?t=400140

Regards,
Isn’t the US market the most stable? International would be more towards speculative?
not during the lost decade. International outperformed US over that time period.

also it's hard to say international is "speculative" when 40% of the entire planet's equity allocation is outside US borders.

returns over the long long term (like talking back to the 1960s) has shown to be very similar. The future will tell if it's same/different than the past.

in 2021 what was the best performing stock market (in developed markets)?

It wasn't the US, that was a 26.5% return.

US was in 3rd place in developed markets.

Austria gained 41.5% (source: https://static1.squarespace.com/static/ ... k-2022.pdf)

in fact if you look at that matrix book (link above) you see that the US was only top dog from 2002-2021 ONCE (in 2014), Finland and Austria were top dog 3 times EACH over the same time period. Sweden twice. Denmark twice. New Zealand twice.

be careful of recency bias (even 10 or 20 years can be thought of as recent. people are very impatient though)

Image

source: https://am.jpmorgan.com/us/en/asset-man ... e-markets/
It's hard to accept the truth when the lies were exactly what you wanted to hear. Investing is simple, but not easy. Buy, hold & rebalance low cost index funds & manage taxable events. Asking Portfolio Questions | Wiki
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by retired@50 »

Vanguard User wrote: Fri Mar 24, 2023 12:31 am
retired@50 wrote: Thu Mar 23, 2023 11:37 pm
Vanguard User wrote: Thu Mar 23, 2023 11:07 pm
The system automatically did that match. I am not emotional when it comes to bear market so I am ok with not drops like 2008 and 2020. Why do I need Bonds or international stocks?
See the video linked in the first post of the thread below for some reasons why you should consider adding international stocks to your portfolio.

Link: viewtopic.php?t=400140

Regards,
Isn’t the US market the most stable? International would be more towards speculative?
I don't know if the US market is more or less stable than international markets (it probably varies over time), but I certainly don't see investing in companies like Nestle Foods, Shell Oil, Samsung, Toyota, etc. as speculative. These companies (and international stock index funds in general) provide consistent dividends to shareholders year after year.

Regards,
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by CyclingDuo »

Vanguard User wrote: Thu Mar 23, 2023 8:57 pm Hello. I work for a big corp and have a traditional 401k through Fidelity but the funds I was invested in was changed on 8/8/22.

Old investment: Fidelity® 500 Index Fund Ticker: FXAIX Gross Expense Ratio: 0.0150% (85% allocation).

Old investment: Vanguard Small-Cap Index Fund Institutional Plus Shares Ticker: VSCPX Gross Expense Ratio: 0.03% (15% allocation).

New investment: Spartan® 500 Index Pool Class F Ticker: N/A Gross Expense Information: 0.0075% (85% allocation).

New investment: Small Cap Index Fund Ticker: N/A Gross Expense Information: 0.028% (15% allocation).

It picked the closest fund to put in from old to new and does have a lower ER.

Should I stick to these funds and allocation?

I chose the old 2 funds and allocations based on someone recommending on another forum that it closely matched VTSAX.

I am a 45 years old male and want to retire between 55-60. I have already made a comprehensive thread in this forum.
From time to time, plans will upgrade/change/add/replace the funds being offered within the plans. In your case, you are fortunate that the changes are so similar as your prior fund choices - and at a lower ER cost basis - to certainly be content.

My wife's plan is changing three of her funds (international, real estate, and bond fund) beginning April 1. Like you, in aggregate, the fees for the mix will now be lower. The funds that have been changed are close enough to resemble what they are replacing to accept the changes and be content.

CyclingDuo
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by MrJedi »

Back to your original question:

To me the old and new funds are direct 1:1 replacements for each other. Looks like your plan actually got improved by reducing fees. This is a good thing. Carry on as normal from here.
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by Vanguard User »

oldcomputerguy wrote: Fri Mar 24, 2023 5:57 am The earlier thread was asking a different question than the one asked here. Please keep the discussion centered on the question above (comparing the old and new investment options).
Thank you for the assistance.
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by Vanguard User »

tashnewbie wrote: Fri Mar 24, 2023 7:21 am Looks like the 401k passed a particular threshold of plan assets to become eligible to use Collective Investment Trusts. They are similar to mutual funds but they don't have a ticker, are usually offered at lower cost, and are only available to investors in certain qualified plans.

Check the wiki about CITs if you want to learn more.

If you were happy with your original allocation, you have the same allocation with these new funds. Up to you whether you want to make any adjustments. You haven't provided any context about your overall portfolio in this thread, so unknown whether other changes are necessary.
Is this a good thing for me meaning CIT?

I posted the link about my portfolio. Please take a look.
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by tashnewbie »

Vanguard User wrote: Fri Mar 24, 2023 10:27 am
tashnewbie wrote: Fri Mar 24, 2023 7:21 am Looks like the 401k passed a particular threshold of plan assets to become eligible to use Collective Investment Trusts. They are similar to mutual funds but they don't have a ticker, are usually offered at lower cost, and are only available to investors in certain qualified plans.

Check the wiki about CITs if you want to learn more.

If you were happy with your original allocation, you have the same allocation with these new funds. Up to you whether you want to make any adjustments. You haven't provided any context about your overall portfolio in this thread, so unknown whether other changes are necessary.
Is this a good thing for me meaning CIT?
I would not be concerned about it, personally. You'll want to determine for yourself. See this for more info: https://www.bogleheads.org/wiki/Collect ... ent_Trusts
I posted the link about my portfolio. Please take a look.
I recommend posting a link in your original post in this thread. It's helpful if users don't have to scroll through a thread to find all relevant info.
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by tibbitts »

Vanguard User wrote: Fri Mar 24, 2023 12:31 am
retired@50 wrote: Thu Mar 23, 2023 11:37 pm
Vanguard User wrote: Thu Mar 23, 2023 11:07 pm
The system automatically did that match. I am not emotional when it comes to bear market so I am ok with not drops like 2008 and 2020. Why do I need Bonds or international stocks?
See the video linked in the first post of the thread below for some reasons why you should consider adding international stocks to your portfolio.

Link: viewtopic.php?t=400140

Regards,
Isn’t the US market the most stable? International would be more towards speculative?
You just said you're not emotional, so why would stability concern you? And if the U.S. is more stable, why wouldn't that be priced in?
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by Vanguard User »

arcticpineapplecorp. wrote: Fri Mar 24, 2023 8:14 am
Vanguard User wrote: Thu Mar 23, 2023 10:07 pm
arcticpineapplecorp. wrote: Thu Mar 23, 2023 9:18 pm that's fine. you can check for comparison under Approximating Total Stock Market

some might say S&P500 (by itself) would be fine since the returns of the two are very similar (back to 1992 when total stock market launched):

Image

source:
https://www.portfoliovisualizer.com/bac ... tion3_2=15

and you'll have to rebalance periodically with two funds which you don't have to do with one S&P500 index fund. But it's entirely your choice. I do something similar to what you do in my 457b (along with holding international/eafe, so I have three funds in my Roth 457b, S&P500/Small and Mid cap/EAFE). Depends on how much work you want to do.
So just do Spartan® 500 Index Pool Class F Ticker: N/A Gross Expense Information: 0.0075% at 100%?

I also have FZROX 100% in my Roth IRA as well as 100% VTSAX in my taxable account. Why was I recommended 15% with the other fund?

Absolutely not a fan of rebalancing. If 1 fund is enough then why not?
1. you were not recommended 15% with the other fund, per se. Your fund replaced the old fund you had held. Usually you'd get literature when a different provider and/or different fund choices are being offered and often the new provider (or same provider offering different funds) will tell you you will be automatically enrolled or will need to re-establish your choices. This happened to me (and also my mom) a few years ago when Empower either took over for Great West or Empower offered different funds (can't remember). Both of us had to actively change or understand what funds we'd be automatically enrolled into. Make sense/

2. whether you should "just do Spartan 500..." or not can not be known in advance. I showed you the long term chart to show that in the past both options should perform similarly enough because they're 80% similar. Whether one does better or worse over YOUR particular timeframe can not be known now. You'll have to do what you feel is best. I pesonally don't think there's anything wrong with either option.
The allocations were recommended by another user on a different forum to closely VTSAX. Why VTSAX for me? Because everyone else is doing it for FIRE so I jumped that bandwagon.
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by Vanguard User »

arcticpineapplecorp. wrote: Fri Mar 24, 2023 8:24 am
Vanguard User wrote: Fri Mar 24, 2023 12:31 am
retired@50 wrote: Thu Mar 23, 2023 11:37 pm
Vanguard User wrote: Thu Mar 23, 2023 11:07 pm
The system automatically did that match. I am not emotional when it comes to bear market so I am ok with not drops like 2008 and 2020. Why do I need Bonds or international stocks?
See the video linked in the first post of the thread below for some reasons why you should consider adding international stocks to your portfolio.

Link: viewtopic.php?t=400140

Regards,
Isn’t the US market the most stable? International would be more towards speculative?
not during the lost decade. International outperformed US over that time period.

also it's hard to say international is "speculative" when 40% of the entire planet's equity allocation is outside US borders.

returns over the long long term (like talking back to the 1960s) has shown to be very similar. The future will tell if it's same/different than the past.

in 2021 what was the best performing stock market (in developed markets)?

It wasn't the US, that was a 26.5% return.

US was in 3rd place in developed markets.

Austria gained 41.5% (source: https://static1.squarespace.com/static/ ... k-2022.pdf)

in fact if you look at that matrix book (link above) you see that the US was only top dog from 2002-2021 ONCE (in 2014), Finland and Austria were top dog 3 times EACH over the same time period. Sweden twice. Denmark twice. New Zealand twice.

be careful of recency bias (even 10 or 20 years can be thought of as recent. people are very impatient though)

Image

source: https://am.jpmorgan.com/us/en/asset-man ... e-markets/
We have had 2 lost decades. Not likely to happen again?
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by arcticpineapplecorp. »

Vanguard User wrote: Fri Mar 24, 2023 1:52 pm
arcticpineapplecorp. wrote: Fri Mar 24, 2023 8:14 am
Vanguard User wrote: Thu Mar 23, 2023 10:07 pm
arcticpineapplecorp. wrote: Thu Mar 23, 2023 9:18 pm that's fine. you can check for comparison under Approximating Total Stock Market

some might say S&P500 (by itself) would be fine since the returns of the two are very similar (back to 1992 when total stock market launched):

Image

source:
https://www.portfoliovisualizer.com/bac ... tion3_2=15

and you'll have to rebalance periodically with two funds which you don't have to do with one S&P500 index fund. But it's entirely your choice. I do something similar to what you do in my 457b (along with holding international/eafe, so I have three funds in my Roth 457b, S&P500/Small and Mid cap/EAFE). Depends on how much work you want to do.
So just do Spartan® 500 Index Pool Class F Ticker: N/A Gross Expense Information: 0.0075% at 100%?

I also have FZROX 100% in my Roth IRA as well as 100% VTSAX in my taxable account. Why was I recommended 15% with the other fund?

Absolutely not a fan of rebalancing. If 1 fund is enough then why not?
1. you were not recommended 15% with the other fund, per se. Your fund replaced the old fund you had held. Usually you'd get literature when a different provider and/or different fund choices are being offered and often the new provider (or same provider offering different funds) will tell you you will be automatically enrolled or will need to re-establish your choices. This happened to me (and also my mom) a few years ago when Empower either took over for Great West or Empower offered different funds (can't remember). Both of us had to actively change or understand what funds we'd be automatically enrolled into. Make sense/

2. whether you should "just do Spartan 500..." or not can not be known in advance. I showed you the long term chart to show that in the past both options should perform similarly enough because they're 80% similar. Whether one does better or worse over YOUR particular timeframe can not be known now. You'll have to do what you feel is best. I pesonally don't think there's anything wrong with either option.
The allocations were recommended by another user on a different forum to closely VTSAX. Why VTSAX for me? Because everyone else is doing it for FIRE so I jumped that bandwagon.
my mom used to say, "If your friends jumped off a bridge would you do that just because they did?"

these days we had kids doing the tide pod challenge.

vtsax is a good investment vehicle to help you grow your money over the long term. you should invest in that because you understand why that's a good investment. not because everyone else is doing it.
It's hard to accept the truth when the lies were exactly what you wanted to hear. Investing is simple, but not easy. Buy, hold & rebalance low cost index funds & manage taxable events. Asking Portfolio Questions | Wiki
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by arcticpineapplecorp. »

Vanguard User wrote: Fri Mar 24, 2023 1:55 pm
arcticpineapplecorp. wrote: Fri Mar 24, 2023 8:24 am
Vanguard User wrote: Fri Mar 24, 2023 12:31 am
retired@50 wrote: Thu Mar 23, 2023 11:37 pm
Vanguard User wrote: Thu Mar 23, 2023 11:07 pm
The system automatically did that match. I am not emotional when it comes to bear market so I am ok with not drops like 2008 and 2020. Why do I need Bonds or international stocks?
See the video linked in the first post of the thread below for some reasons why you should consider adding international stocks to your portfolio.

Link: viewtopic.php?t=400140

Regards,
Isn’t the US market the most stable? International would be more towards speculative?
not during the lost decade. International outperformed US over that time period.

also it's hard to say international is "speculative" when 40% of the entire planet's equity allocation is outside US borders.

returns over the long long term (like talking back to the 1960s) has shown to be very similar. The future will tell if it's same/different than the past.

in 2021 what was the best performing stock market (in developed markets)?

It wasn't the US, that was a 26.5% return.

US was in 3rd place in developed markets.

Austria gained 41.5% (source: https://static1.squarespace.com/static/ ... k-2022.pdf)

in fact if you look at that matrix book (link above) you see that the US was only top dog from 2002-2021 ONCE (in 2014), Finland and Austria were top dog 3 times EACH over the same time period. Sweden twice. Denmark twice. New Zealand twice.

be careful of recency bias (even 10 or 20 years can be thought of as recent. people are very impatient though)

Image

source: https://am.jpmorgan.com/us/en/asset-man ... e-markets/
We have had 2 lost decades. Not likely to happen again?
never say never. anything is possible.
It's hard to accept the truth when the lies were exactly what you wanted to hear. Investing is simple, but not easy. Buy, hold & rebalance low cost index funds & manage taxable events. Asking Portfolio Questions | Wiki
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by Vanguard User »

retired@50 wrote: Fri Mar 24, 2023 8:31 am
Vanguard User wrote: Fri Mar 24, 2023 12:31 am
retired@50 wrote: Thu Mar 23, 2023 11:37 pm
Vanguard User wrote: Thu Mar 23, 2023 11:07 pm
The system automatically did that match. I am not emotional when it comes to bear market so I am ok with not drops like 2008 and 2020. Why do I need Bonds or international stocks?
See the video linked in the first post of the thread below for some reasons why you should consider adding international stocks to your portfolio.

Link: viewtopic.php?t=400140

Regards,
Isn’t the US market the most stable? International would be more towards speculative?
I don't know if the US market is more or less stable than international markets (it probably varies over time), but I certainly don't see investing in companies like Nestle Foods, Shell Oil, Samsung, Toyota, etc. as speculative. These companies (and international stock index funds in general) provide consistent dividends to shareholders year after year.

Regards,
What about the 2 fund I am invested in?
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by retired@50 »

Vanguard User wrote: Fri Mar 24, 2023 2:26 pm
retired@50 wrote: Fri Mar 24, 2023 8:31 am
Vanguard User wrote: Fri Mar 24, 2023 12:31 am
retired@50 wrote: Thu Mar 23, 2023 11:37 pm
Vanguard User wrote: Thu Mar 23, 2023 11:07 pm
The system automatically did that match. I am not emotional when it comes to bear market so I am ok with not drops like 2008 and 2020. Why do I need Bonds or international stocks?
See the video linked in the first post of the thread below for some reasons why you should consider adding international stocks to your portfolio.

Link: viewtopic.php?t=400140

Regards,
Isn’t the US market the most stable? International would be more towards speculative?
I don't know if the US market is more or less stable than international markets (it probably varies over time), but I certainly don't see investing in companies like Nestle Foods, Shell Oil, Samsung, Toyota, etc. as speculative. These companies (and international stock index funds in general) provide consistent dividends to shareholders year after year.

Regards,
What about the 2 fund I am invested in?
The Spartan 500 and the small cap fund do a fine job of covering the US stock market.

By adding international stocks to your portfolio, you'll be increasing diversification - more diversification is generally a highly regarded quality of an investment portfolio.

The same argument can be made for bond index funds.

In other words, branching out, and not relying on a single stock market (the US market) to provide ALL of your retirement income is arguably a more resilient strategy. Obviously, it's your call how you invest. You might consider doing some reading on the topic if you remain unconvinced.

See link for recommended books: https://www.bogleheads.org/wiki/Book_re ... nd_reviews

Regards,
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by Vanguard User »

CyclingDuo wrote: Fri Mar 24, 2023 8:47 am
Vanguard User wrote: Thu Mar 23, 2023 8:57 pm Hello. I work for a big corp and have a traditional 401k through Fidelity but the funds I was invested in was changed on 8/8/22.

Old investment: Fidelity® 500 Index Fund Ticker: FXAIX Gross Expense Ratio: 0.0150% (85% allocation).

Old investment: Vanguard Small-Cap Index Fund Institutional Plus Shares Ticker: VSCPX Gross Expense Ratio: 0.03% (15% allocation).

New investment: Spartan® 500 Index Pool Class F Ticker: N/A Gross Expense Information: 0.0075% (85% allocation).

New investment: Small Cap Index Fund Ticker: N/A Gross Expense Information: 0.028% (15% allocation).

It picked the closest fund to put in from old to new and does have a lower ER.

Should I stick to these funds and allocation?

I chose the old 2 funds and allocations based on someone recommending on another forum that it closely matched VTSAX.

I am a 45 years old male and want to retire between 55-60. I have already made a comprehensive thread in this forum.
From time to time, plans will upgrade/change/add/replace the funds being offered within the plans. In your case, you are fortunate that the changes are so similar as your prior fund choices - and at a lower ER cost basis - to certainly be content.

My wife's plan is changing three of her funds (international, real estate, and bond fund) beginning April 1. Like you, in aggregate, the fees for the mix will now be lower. The funds that have been changed are close enough to resemble what they are replacing to accept the changes and be content.

CyclingDuo
Should I keep it as is? What about allocation?
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by Vanguard User »

MrJedi wrote: Fri Mar 24, 2023 9:26 am Back to your original question:

To me the old and new funds are direct 1:1 replacements for each other. Looks like your plan actually got improved by reducing fees. This is a good thing. Carry on as normal from here.
Yes but should I keep the 85/15 allocation?
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by Vanguard User »

tashnewbie wrote: Fri Mar 24, 2023 10:29 am
Vanguard User wrote: Fri Mar 24, 2023 10:27 am
tashnewbie wrote: Fri Mar 24, 2023 7:21 am Looks like the 401k passed a particular threshold of plan assets to become eligible to use Collective Investment Trusts. They are similar to mutual funds but they don't have a ticker, are usually offered at lower cost, and are only available to investors in certain qualified plans.

Check the wiki about CITs if you want to learn more.

If you were happy with your original allocation, you have the same allocation with these new funds. Up to you whether you want to make any adjustments. You haven't provided any context about your overall portfolio in this thread, so unknown whether other changes are necessary.
Is this a good thing for me meaning CIT?
I would not be concerned about it, personally. You'll want to determine for yourself. See this for more info: https://www.bogleheads.org/wiki/Collect ... ent_Trusts
I posted the link about my portfolio. Please take a look.
I recommend posting a link in your original post in this thread. It's helpful if users don't have to scroll through a thread to find all relevant info.
I did post the link. Please take a look.
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by Vanguard User »

tibbitts wrote: Fri Mar 24, 2023 10:34 am
Vanguard User wrote: Fri Mar 24, 2023 12:31 am
retired@50 wrote: Thu Mar 23, 2023 11:37 pm
Vanguard User wrote: Thu Mar 23, 2023 11:07 pm
The system automatically did that match. I am not emotional when it comes to bear market so I am ok with not drops like 2008 and 2020. Why do I need Bonds or international stocks?
See the video linked in the first post of the thread below for some reasons why you should consider adding international stocks to your portfolio.

Link: viewtopic.php?t=400140

Regards,
Isn’t the US market the most stable? International would be more towards speculative?
You just said you're not emotional, so why would stability concern you? And if the U.S. is more stable, why wouldn't that be priced in?
I jumped on the VTSAX bandwagon like everyone else.
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by tibbitts »

Vanguard User wrote: Fri Mar 24, 2023 2:56 pm
tibbitts wrote: Fri Mar 24, 2023 10:34 am
Vanguard User wrote: Fri Mar 24, 2023 12:31 am
retired@50 wrote: Thu Mar 23, 2023 11:37 pm
Vanguard User wrote: Thu Mar 23, 2023 11:07 pm
The system automatically did that match. I am not emotional when it comes to bear market so I am ok with not drops like 2008 and 2020. Why do I need Bonds or international stocks?
See the video linked in the first post of the thread below for some reasons why you should consider adding international stocks to your portfolio.

Link: viewtopic.php?t=400140

Regards,
Isn’t the US market the most stable? International would be more towards speculative?
You just said you're not emotional, so why would stability concern you? And if the U.S. is more stable, why wouldn't that be priced in?
I jumped on the VTSAX bandwagon like everyone else.
I wouldn't say everyone else, or even a majority here, ever jumped on the VTSAX-only bandwagon (not even only in terms of their equity allocation.)
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by Vanguard User »

arcticpineapplecorp. wrote: Fri Mar 24, 2023 1:58 pm
Vanguard User wrote: Fri Mar 24, 2023 1:52 pm
arcticpineapplecorp. wrote: Fri Mar 24, 2023 8:14 am
Vanguard User wrote: Thu Mar 23, 2023 10:07 pm
arcticpineapplecorp. wrote: Thu Mar 23, 2023 9:18 pm that's fine. you can check for comparison under Approximating Total Stock Market

some might say S&P500 (by itself) would be fine since the returns of the two are very similar (back to 1992 when total stock market launched):

Image

source:
https://www.portfoliovisualizer.com/bac ... tion3_2=15

and you'll have to rebalance periodically with two funds which you don't have to do with one S&P500 index fund. But it's entirely your choice. I do something similar to what you do in my 457b (along with holding international/eafe, so I have three funds in my Roth 457b, S&P500/Small and Mid cap/EAFE). Depends on how much work you want to do.
So just do Spartan® 500 Index Pool Class F Ticker: N/A Gross Expense Information: 0.0075% at 100%?

I also have FZROX 100% in my Roth IRA as well as 100% VTSAX in my taxable account. Why was I recommended 15% with the other fund?

Absolutely not a fan of rebalancing. If 1 fund is enough then why not?
1. you were not recommended 15% with the other fund, per se. Your fund replaced the old fund you had held. Usually you'd get literature when a different provider and/or different fund choices are being offered and often the new provider (or same provider offering different funds) will tell you you will be automatically enrolled or will need to re-establish your choices. This happened to me (and also my mom) a few years ago when Empower either took over for Great West or Empower offered different funds (can't remember). Both of us had to actively change or understand what funds we'd be automatically enrolled into. Make sense/

2. whether you should "just do Spartan 500..." or not can not be known in advance. I showed you the long term chart to show that in the past both options should perform similarly enough because they're 80% similar. Whether one does better or worse over YOUR particular timeframe can not be known now. You'll have to do what you feel is best. I pesonally don't think there's anything wrong with either option.
The allocations were recommended by another user on a different forum to closely VTSAX. Why VTSAX for me? Because everyone else is doing it for FIRE so I jumped that bandwagon.
my mom used to say, "If your friends jumped off a bridge would you do that just because they did?"

these days we had kids doing the tide pod challenge.

vtsax is a good investment vehicle to help you grow your money over the long term. you should invest in that because you understand why that's a good investment. not because everyone else is doing it.
I would jump off that bridge if that are beneficial to them.

The 2 fund I have closely matched VTSAX right? Both old and new, 85/15 allocation.
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by tashnewbie »

Vanguard User wrote: Fri Mar 24, 2023 2:54 pm
tashnewbie wrote: Fri Mar 24, 2023 10:29 am
Vanguard User wrote: Fri Mar 24, 2023 10:27 am
tashnewbie wrote: Fri Mar 24, 2023 7:21 am Looks like the 401k passed a particular threshold of plan assets to become eligible to use Collective Investment Trusts. They are similar to mutual funds but they don't have a ticker, are usually offered at lower cost, and are only available to investors in certain qualified plans.

Check the wiki about CITs if you want to learn more.

If you were happy with your original allocation, you have the same allocation with these new funds. Up to you whether you want to make any adjustments. You haven't provided any context about your overall portfolio in this thread, so unknown whether other changes are necessary.
Is this a good thing for me meaning CIT?
I would not be concerned about it, personally. You'll want to determine for yourself. See this for more info: https://www.bogleheads.org/wiki/Collect ... ent_Trusts
I posted the link about my portfolio. Please take a look.
I recommend posting a link in your original post in this thread. It's helpful if users don't have to scroll through a thread to find all relevant info.
I did post the link. Please take a look.
I don't see a link in the original post on *this* thread.
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by Vanguard User »

arcticpineapplecorp. wrote: Fri Mar 24, 2023 1:59 pm
Vanguard User wrote: Fri Mar 24, 2023 1:55 pm
arcticpineapplecorp. wrote: Fri Mar 24, 2023 8:24 am
Vanguard User wrote: Fri Mar 24, 2023 12:31 am
retired@50 wrote: Thu Mar 23, 2023 11:37 pm

See the video linked in the first post of the thread below for some reasons why you should consider adding international stocks to your portfolio.

Link: viewtopic.php?t=400140

Regards,
Isn’t the US market the most stable? International would be more towards speculative?
not during the lost decade. International outperformed US over that time period.

also it's hard to say international is "speculative" when 40% of the entire planet's equity allocation is outside US borders.

returns over the long long term (like talking back to the 1960s) has shown to be very similar. The future will tell if it's same/different than the past.

in 2021 what was the best performing stock market (in developed markets)?

It wasn't the US, that was a 26.5% return.

US was in 3rd place in developed markets.

Austria gained 41.5% (source: https://static1.squarespace.com/static/ ... k-2022.pdf)

in fact if you look at that matrix book (link above) you see that the US was only top dog from 2002-2021 ONCE (in 2014), Finland and Austria were top dog 3 times EACH over the same time period. Sweden twice. Denmark twice. New Zealand twice.

be careful of recency bias (even 10 or 20 years can be thought of as recent. people are very impatient though)

Image

source: https://am.jpmorgan.com/us/en/asset-man ... e-markets/
We have had 2 lost decades. Not likely to happen again?
never say never. anything is possible.
Right.
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by Vanguard User »

retired@50 wrote: Fri Mar 24, 2023 2:38 pm
Vanguard User wrote: Fri Mar 24, 2023 2:26 pm
retired@50 wrote: Fri Mar 24, 2023 8:31 am
Vanguard User wrote: Fri Mar 24, 2023 12:31 am
retired@50 wrote: Thu Mar 23, 2023 11:37 pm

See the video linked in the first post of the thread below for some reasons why you should consider adding international stocks to your portfolio.

Link: viewtopic.php?t=400140

Regards,
Isn’t the US market the most stable? International would be more towards speculative?
I don't know if the US market is more or less stable than international markets (it probably varies over time), but I certainly don't see investing in companies like Nestle Foods, Shell Oil, Samsung, Toyota, etc. as speculative. These companies (and international stock index funds in general) provide consistent dividends to shareholders year after year.

Regards,
What about the 2 fund I am invested in?
The Spartan 500 and the small cap fund do a fine job of covering the US stock market.

By adding international stocks to your portfolio, you'll be increasing diversification - more diversification is generally a highly regarded quality of an investment portfolio.

The same argument can be made for bond index funds.

In other words, branching out, and not relying on a single stock market (the US market) to provide ALL of your retirement income is arguably a more resilient strategy. Obviously, it's your call how you invest. You might consider doing some reading on the topic if you remain unconvinced.

See link for recommended books: https://www.bogleheads.org/wiki/Book_re ... nd_reviews

Regards,
But I want the Boglehead approach. The 1, 2, 3 fund portfolio. I prefer one because I don’t like rebalancing. Let the pros do that.

I want maximum ROI. I don’t care if my portfolio drops 50%.
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by Vanguard User »

tibbitts wrote: Fri Mar 24, 2023 3:03 pm
Vanguard User wrote: Fri Mar 24, 2023 2:56 pm
tibbitts wrote: Fri Mar 24, 2023 10:34 am
Vanguard User wrote: Fri Mar 24, 2023 12:31 am
retired@50 wrote: Thu Mar 23, 2023 11:37 pm

See the video linked in the first post of the thread below for some reasons why you should consider adding international stocks to your portfolio.

Link: viewtopic.php?t=400140

Regards,
Isn’t the US market the most stable? International would be more towards speculative?
You just said you're not emotional, so why would stability concern you? And if the U.S. is more stable, why wouldn't that be priced in?
I jumped on the VTSAX bandwagon like everyone else.
I wouldn't say everyone else, or even a majority here, ever jumped on the VTSAX-only bandwagon (not even only in terms of their equity allocation.)
The ones who are 💯 equity?
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by Doctor Rhythm »

Lower expenses for similar funds - sounds good. Besides, what’s the alternative? Is there a target date or balanced multi-assset fund you can use since you don’t like to rebalance?

The allocation you picked is recommended because it represents the total US stock market, not because it mimics VTSAX (which does the same). Unless, you can explain why this isn’t the best option for your particular beliefs or needs, I’d stick with it.

As others said, consider adding international (whether in your 401k or a taxable account) if you want to mimic the 3 fund portfolio that’s talked about here.
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by tibbitts »

Vanguard User wrote: Fri Mar 24, 2023 3:13 pm
tibbitts wrote: Fri Mar 24, 2023 3:03 pm
Vanguard User wrote: Fri Mar 24, 2023 2:56 pm
tibbitts wrote: Fri Mar 24, 2023 10:34 am
Vanguard User wrote: Fri Mar 24, 2023 12:31 am

Isn’t the US market the most stable? International would be more towards speculative?
You just said you're not emotional, so why would stability concern you? And if the U.S. is more stable, why wouldn't that be priced in?
I jumped on the VTSAX bandwagon like everyone else.
I wouldn't say everyone else, or even a majority here, ever jumped on the VTSAX-only bandwagon (not even only in terms of their equity allocation.)
The ones who are 💯 equity?
I'm not sure what that means. Regardless of equity percentage I'm pretty sure that the majority of Bogleheads have some international allocation, whether explicitly through an index fund, or through one of the Ws or a Target or LifeStrategy fund. So only a minority would have VTSAX or the equivalent ETF as their only equity position.
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by CyclingDuo »

Vanguard User wrote: Fri Mar 24, 2023 2:48 pm
CyclingDuo wrote: Fri Mar 24, 2023 8:47 am
Vanguard User wrote: Thu Mar 23, 2023 8:57 pm Hello. I work for a big corp and have a traditional 401k through Fidelity but the funds I was invested in was changed on 8/8/22.

Old investment: Fidelity® 500 Index Fund Ticker: FXAIX Gross Expense Ratio: 0.0150% (85% allocation).

Old investment: Vanguard Small-Cap Index Fund Institutional Plus Shares Ticker: VSCPX Gross Expense Ratio: 0.03% (15% allocation).

New investment: Spartan® 500 Index Pool Class F Ticker: N/A Gross Expense Information: 0.0075% (85% allocation).

New investment: Small Cap Index Fund Ticker: N/A Gross Expense Information: 0.028% (15% allocation).

It picked the closest fund to put in from old to new and does have a lower ER.

Should I stick to these funds and allocation?

I chose the old 2 funds and allocations based on someone recommending on another forum that it closely matched VTSAX.

I am a 45 years old male and want to retire between 55-60. I have already made a comprehensive thread in this forum.
From time to time, plans will upgrade/change/add/replace the funds being offered within the plans. In your case, you are fortunate that the changes are so similar as your prior fund choices - and at a lower ER cost basis - to certainly be content.

My wife's plan is changing three of her funds (international, real estate, and bond fund) beginning April 1. Like you, in aggregate, the fees for the mix will now be lower. The funds that have been changed are close enough to resemble what they are replacing to accept the changes and be content.

CyclingDuo
Should I keep it as is? What about allocation?
I would stick close to the approximating total us market found in the wiki which would remain 85/15 as you have it.
"Save like a pessimist, invest like an optimist." - Morgan Housel | "Pick a bushel, save a peck!" - Grandpa
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by retired@50 »

Vanguard User wrote: Fri Mar 24, 2023 3:09 pm
retired@50 wrote: Fri Mar 24, 2023 2:38 pm
Vanguard User wrote: Fri Mar 24, 2023 2:26 pm
retired@50 wrote: Fri Mar 24, 2023 8:31 am
Vanguard User wrote: Fri Mar 24, 2023 12:31 am

Isn’t the US market the most stable? International would be more towards speculative?
I don't know if the US market is more or less stable than international markets (it probably varies over time), but I certainly don't see investing in companies like Nestle Foods, Shell Oil, Samsung, Toyota, etc. as speculative. These companies (and international stock index funds in general) provide consistent dividends to shareholders year after year.

Regards,
What about the 2 fund I am invested in?
The Spartan 500 and the small cap fund do a fine job of covering the US stock market.

By adding international stocks to your portfolio, you'll be increasing diversification - more diversification is generally a highly regarded quality of an investment portfolio.

The same argument can be made for bond index funds.

In other words, branching out, and not relying on a single stock market (the US market) to provide ALL of your retirement income is arguably a more resilient strategy. Obviously, it's your call how you invest. You might consider doing some reading on the topic if you remain unconvinced.

See link for recommended books: https://www.bogleheads.org/wiki/Book_re ... nd_reviews

Regards,
But I want the Boglehead approach. The 1, 2, 3 fund portfolio. I prefer one because I don’t like rebalancing. Let the pros do that.

I want maximum ROI. I don’t care if my portfolio drops 50%.
I give up. You win.

Regards,
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by Vanguard User »

tashnewbie wrote: Fri Mar 24, 2023 3:05 pm
Vanguard User wrote: Fri Mar 24, 2023 2:54 pm
tashnewbie wrote: Fri Mar 24, 2023 10:29 am
Vanguard User wrote: Fri Mar 24, 2023 10:27 am
tashnewbie wrote: Fri Mar 24, 2023 7:21 am Looks like the 401k passed a particular threshold of plan assets to become eligible to use Collective Investment Trusts. They are similar to mutual funds but they don't have a ticker, are usually offered at lower cost, and are only available to investors in certain qualified plans.

Check the wiki about CITs if you want to learn more.

If you were happy with your original allocation, you have the same allocation with these new funds. Up to you whether you want to make any adjustments. You haven't provided any context about your overall portfolio in this thread, so unknown whether other changes are necessary.
Is this a good thing for me meaning CIT?
I would not be concerned about it, personally. You'll want to determine for yourself. See this for more info: https://www.bogleheads.org/wiki/Collect ... ent_Trusts
I posted the link about my portfolio. Please take a look.
I recommend posting a link in your original post in this thread. It's helpful if users don't have to scroll through a thread to find all relevant info.
I did post the link. Please take a look.
I don't see a link in the original post on *this* thread.
viewtopic.php?t=352302
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by Vanguard User »

Doctor Rhythm wrote: Fri Mar 24, 2023 3:18 pm Lower expenses for similar funds - sounds good. Besides, what’s the alternative? Is there a target date or balanced multi-assset fund you can use since you don’t like to rebalance?

The allocation you picked is recommended because it represents the total US stock market, not because it mimics VTSAX (which does the same). Unless, you can explain why this isn’t the best option for your particular beliefs or needs, I’d stick with it.

As others said, consider adding international (whether in your 401k or a taxable account) if you want to mimic the 3 fund portfolio that’s talked about here.
There are target funds available. Those are for traditional retirement right?

I am looking to FIRE.

My taxable account at Vanguard is just VTSAX.
Roth IRA is just FZROX.
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by Doctor Rhythm »

Vanguard User wrote: Fri Mar 24, 2023 6:11 pm
Doctor Rhythm wrote: Fri Mar 24, 2023 3:18 pm Lower expenses for similar funds - sounds good. Besides, what’s the alternative? Is there a target date or balanced multi-assset fund you can use since you don’t like to rebalance?

The allocation you picked is recommended because it represents the total US stock market, not because it mimics VTSAX (which does the same). Unless, you can explain why this isn’t the best option for your particular beliefs or needs, I’d stick with it.

As others said, consider adding international (whether in your 401k or a taxable account) if you want to mimic the 3 fund portfolio that’s talked about here.
There are target funds available. Those are for traditional retirement right?

I am looking to FIRE.

My taxable account at Vanguard is just VTSAX.
Roth IRA is just FZROX.
You pick the TDF that makes sense for your horizon and needs, not the one that corresponds to your birth year. You can pick one with a later or earlier target year.
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by Vanguard User »

tibbitts wrote: Fri Mar 24, 2023 3:36 pm
Vanguard User wrote: Fri Mar 24, 2023 3:13 pm
tibbitts wrote: Fri Mar 24, 2023 3:03 pm
Vanguard User wrote: Fri Mar 24, 2023 2:56 pm
tibbitts wrote: Fri Mar 24, 2023 10:34 am
You just said you're not emotional, so why would stability concern you? And if the U.S. is more stable, why wouldn't that be priced in?
I jumped on the VTSAX bandwagon like everyone else.
I wouldn't say everyone else, or even a majority here, ever jumped on the VTSAX-only bandwagon (not even only in terms of their equity allocation.)
The ones who are 💯 equity?
I'm not sure what that means. Regardless of equity percentage I'm pretty sure that the majority of Bogleheads have some international allocation, whether explicitly through an index fund, or through one of the Ws or a Target or LifeStrategy fund. So only a minority would have VTSAX or the equivalent ETF as their only equity position.
What is the advantage of just having VTSAX?
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by Vanguard User »

CyclingDuo wrote: Fri Mar 24, 2023 3:43 pm
Vanguard User wrote: Fri Mar 24, 2023 2:48 pm
CyclingDuo wrote: Fri Mar 24, 2023 8:47 am
Vanguard User wrote: Thu Mar 23, 2023 8:57 pm Hello. I work for a big corp and have a traditional 401k through Fidelity but the funds I was invested in was changed on 8/8/22.

Old investment: Fidelity® 500 Index Fund Ticker: FXAIX Gross Expense Ratio: 0.0150% (85% allocation).

Old investment: Vanguard Small-Cap Index Fund Institutional Plus Shares Ticker: VSCPX Gross Expense Ratio: 0.03% (15% allocation).

New investment: Spartan® 500 Index Pool Class F Ticker: N/A Gross Expense Information: 0.0075% (85% allocation).

New investment: Small Cap Index Fund Ticker: N/A Gross Expense Information: 0.028% (15% allocation).

It picked the closest fund to put in from old to new and does have a lower ER.

Should I stick to these funds and allocation?

I chose the old 2 funds and allocations based on someone recommending on another forum that it closely matched VTSAX.

I am a 45 years old male and want to retire between 55-60. I have already made a comprehensive thread in this forum.
From time to time, plans will upgrade/change/add/replace the funds being offered within the plans. In your case, you are fortunate that the changes are so similar as your prior fund choices - and at a lower ER cost basis - to certainly be content.

My wife's plan is changing three of her funds (international, real estate, and bond fund) beginning April 1. Like you, in aggregate, the fees for the mix will now be lower. The funds that have been changed are close enough to resemble what they are replacing to accept the changes and be content.

CyclingDuo
Should I keep it as is? What about allocation?
I would stick close to the approximating total us market found in the wiki which would remain 85/15 as you have it.
So whoever did my calculations for my funds and allocation was all correct?
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Re: Employer t401k was auto switched to a different fund? Please help?

Post by Vanguard User »

retired@50 wrote: Fri Mar 24, 2023 4:10 pm
Vanguard User wrote: Fri Mar 24, 2023 3:09 pm
retired@50 wrote: Fri Mar 24, 2023 2:38 pm
Vanguard User wrote: Fri Mar 24, 2023 2:26 pm
retired@50 wrote: Fri Mar 24, 2023 8:31 am

I don't know if the US market is more or less stable than international markets (it probably varies over time), but I certainly don't see investing in companies like Nestle Foods, Shell Oil, Samsung, Toyota, etc. as speculative. These companies (and international stock index funds in general) provide consistent dividends to shareholders year after year.

Regards,
What about the 2 fund I am invested in?
The Spartan 500 and the small cap fund do a fine job of covering the US stock market.

By adding international stocks to your portfolio, you'll be increasing diversification - more diversification is generally a highly regarded quality of an investment portfolio.

The same argument can be made for bond index funds.

In other words, branching out, and not relying on a single stock market (the US market) to provide ALL of your retirement income is arguably a more resilient strategy. Obviously, it's your call how you invest. You might consider doing some reading on the topic if you remain unconvinced.

See link for recommended books: https://www.bogleheads.org/wiki/Book_re ... nd_reviews

Regards,
But I want the Boglehead approach. The 1, 2, 3 fund portfolio. I prefer one because I don’t like rebalancing. Let the pros do that.

I want maximum ROI. I don’t care if my portfolio drops 50%.
I give up. You win.

Regards,

What do you suggest?
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