My Retirement Portfolio – Oct 25, 2012

Disclaimer: I’m 22 and honestly, have no idea what the heck I’m doing while I’m investing. Most of the time I’m throwing darts at an invisible target.

I opened up my 401K in July when I was eligible to start contributing. I’m immediately 100% vested, and my company has a match. Here are the funds available from my company:

As you can see, fees are pretty high. I actually had no idea they were high until I read Joe’s post My Overdue Portfolio. When I first invested in mutual funds at age 18, I didn’t even consider expense fees. Yup, crazy me! Here is my first plunge into my 401K.

After reading Joe’s post I realized I was investing in American Century Equity Income and paying an extreme fee: 1.95%. I also noticed I was paying an expense fee of .95% of Colombia Acorn International A-Z. Since I already had mid growth and large value funds, I decided to eliminate those funds.

As you can see, I still have funds with high expenses. I’m looking at the American Funds EuroPacific fund with a .84% expense fee. I know 401Ks have higher fees than other mutual funds, but I wonder how many people ignore those fees? I sure heck did. I’m still thinking of eliminating a couple of my funds with high expense fees like AEPGX. I’m thinking I can find a similar fund with better returns in Vanguard for my ROTH IRA.

I, also, took the plunge yesterday and invested in my ROTH IRA with Vanguard. I invested $3,000 in VGHCX. It’s a mutual fund concentrated on healthcare companies. Look at how low that expense fee is .35%, and that’s not a super low fee compared to other Vanguard funds.

My husband does not have a 401K, so I can’t show his portfolio. I will open his ROTH IRA later this year.

Have you looked at your portfolio lately? How do you feel about investing?

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9 responses to “My Retirement Portfolio – Oct 25, 2012

  1. Those are really high fees! Which 401(k) provider does your company use? My company uses Great West Retirement Services and the majority of the funds I have in my 401(k) have expense ratios under 0.30%. In fact, nearly half of the money in my 401(k) is in a fund with a 0.10% expense ratio. I would talk to your HR manager about it. If enough people complain about the high fees, your company might consider switching to a different provider.

  2. Pingback: I Realigned My 401K Portfolio With Some Vanguard | Savvy Financial Latina·

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