How would you allocate my new 401k?

Sup PFC Fam!

I’m now eligible to contribute to the 401k at my new job and there are several mutual fund options, all with various performances/allocations/fees etc.

So far I have narrowed it down to 3 Index Funds ( All Vanguard ) and 1 Mutual fund that has the lowest expense ratio and best performance.

I’m currently thinking an allocation like this:
*VINIX - 70%
*VSMAX - 10%
*VTIAX - 10%
*APGZX - 10%

Since I’m going to Max it out HAM style! , I would like to get other opinions on how to better allocate it.

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Overall, you can’t go wrong with the Vanguard funds you’re picking. They’re all “No Load” and have very low expense ratios.

My personal preference is to keep things simple with less funds overall. VINIX has around 500 stocks and I would probably want to stick a majority of my allocation towards a total US stock market index fund like VTSAX if they have that available to you which has large cap, medium cap, and small cap all in one index fund (around 3500 stocks). If you wanted to lean more and have a heavier weight towards small cap then you could also keep your 10% allocation towards VSMAX too.

VTIAX is a great fund for international exposure and it’s really a personal preference as to how much you want allocated towards international. I keep my international allocation between 20-25% overall. I would get rid of the APGZX growth fund because I just don’t bother with funds that have expense ratios over .20% but to each their own.

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Thank you for the response.

I re-watched some of the previous office hours and was reminded of not chasing past performances and just concentrate on the expense rations

As for the allocations I’ll decide on something easy and then later this year might rebalance.

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Hi Fernando!

I’ll cover this in tonight’s office hours (6/16/2021) with the recording available afterwards on the course site!

If you’re not signed up for office hours, you can sign up here.