I Realigned My 401K Portfolio With Some Vanguard

My company added Vanguard funds to their 401k funds!!!!!!!!!! You have no idea how happy I was when I logged in and looked investment choices earlier this week. I actually found out by mistake. You think they would send a huge company announcement saying we added Vanguard, no peeps go sign up for them. But nooooo!!! They kept their mouths shut and I had to go find out by checking my investment options.

Remember my crappy investment choices? If not here’s quick reminder (see picture below). These funds have extremely high expenses and terrible yields. Look atAEYIX (American Century Equity Income). It has an average 1.69% yield and a 1.95% fee….so I’m basically making money to pay the fund managers, and then, coming out negative….Hmmmm does not sound right.

Now, my 401k looks like this as of 1/10/2013. I completely simplified my strategy. I’m investing in VMCPX, VIIX, VSCPX. And of course, since they are Vanguard funds, fees are extremely low, like less than .2%! Booyahh! I have my ROTH IRA invested in VHDYX.

Screen Shot 2013-01-10 at 10.36.40 PM

My investment strategy just got easier. Now I can just sit and relax 🙂 Now, I do realize I am heavily…like 100% invested in stocks. But since I won’t touch this until 40 years from now, I’m being a little aggressive.

Have you looked at your company’s investment choices lately???Have you rebalanced your portfolio?

8 responses to “I Realigned My 401K Portfolio With Some Vanguard

  1. That’s awesome they added some Vanguard funds to your options! Way too many employers could give a rip about the options they give to employees. As we’re self-employed the options are completely up to us. 🙂

    • I really need to send a thank you note to whoever is in charge of our 401k options. I have no idea why anybody would not pick Vanguard, especially since all the other funds’ fees are at least .5%. It’s crazy!!!
      But that’s just my philosophy. Not everybody agrees with me. My coworker says he doesn’t really pay attention to his 401k because there’s not even that much in it. He also pays $150 a year on top of mutual fund fees to have JPMorgan run his portfolio. I may only have $7K in it right now, but I believe every oenny counts. Sometimes I want to ask him, how much do you have to not care about your money???

  2. My company recently switched over to some Vanguard funds and I jumped on them right away. We have a similar Institutional Index fund (VINIX) that has an expense ratio of 0.04%!

    You are doing a great job with your 401k savings rate, keep it up and you’ll be able to retire with your toes in the sand!

  3. I’ve never understood why an employer can’t come up with decent 401k funds? As if it’s hard to type in google “low fee, index fund” or something. Glad to see that your employer finally saw the light.

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