Edward Jones FA had me in the following funds in my 401k. I need advice.

[F.I.R.E User]

Hello. I have a traditional 401k account at Fidelity with my employer with 100% dollar to dollar match up to 6%. My then EJ FA (I left EJ after being with them for 15+ years yesterday, I had Roth IRA with them) had me in the following funds (6 of them) with certain AA. There are 21 fund choices to choose from. I want to simplify things and want to be in just 1 fund. Would that be the best option? I do want 100% equity like VTSAX (I have this in my Vanguard taxable account). I will go with FZROX with Roth IRA.

I have no issue when the market drops dramatically like it did in 2008 and 2020 because I would benefit from DCA.


Current selections:

VANGUARD TARGET 2045 - 16%

FID 500 INDEX - 30%

SMALL CAP VANG SM CP IDX IS PL - 13%

FID GLB EX US IDX - 23%

BOND INDEX FUND - 11%

INTERNATIONAL FUND - 7%.

Choices are: Vanguard Target 2015 to 2065 options and Vanguard Target Inc.

Passively managed index options:

FXAIX.
VSCPX.
FSGGX.
Bond Index Fund.

Actively managed options:

Large Cap Stock Fund.
Small Mid Cap Stock.
International Fund.
Bond Fund.
<My company name> Stable Value.


State: Texas
Age: 43 Male, Single, No kids.

 

[F.I.R.E User]

Any help would be appreciated.

 

[SevenUp]

I do want 100% equity like VTSAX....

Did you mean "don't want" or is "do want" correct?

 

[F.I.R.E User]

Did you mean "don't want" or is "do want" correct?

Do want.

 

[RetireeRobert]

Vscpx

 

[bada bing]

If you want to emulate VTSAX with the funds available in your 401K:

85% FXAIX.
15% VSCPX

That gives the best approximation of the total USA market with what's listed. It should be very close performance match. If you want only one fund, the S&P500 index, FXAIX, is the closest one fund approach to VTSAX but will vary in performance a percent point or two, year to year.

 

[SevenUp]

If you want to emulate VTSAX with the funds available in your 401K:

85% FXAIX.
15% VSCPX

+1

Agrees with Approximating total stock market - Bogleheads

 

[RetireeRobert]

+1

Agrees with Approximating total stock market - Bogleheads

Good suggestion.

But OP did say he wanted "one fund".

 

[target2019]

Passive choices:
Fidelity 500 Index Fund (FXAIX)
Vanguard Small-Cap Index Fund Institutional Plus Shares (VSCPX)
Fidelity Global ex U.S. Index Fund (FSGGX)

100% Fidelity 500 Index Fund (FXAIX) in 401(k)
100% Vanguard Extended Market Index Fund Admiral Shares (VEXAX) in Roth IRA

 

[Jerry1]

Also, I wonder what the return is on the stable fund. Unlikely, but it may provide a return above average - higher than CD’s. DW is still in her work 401K because her stable fund pays out 3%, though it is currently closed to new funds. Still, worth knowing.

 

[mrfeh]

Any help would be appreciated.

It's not clear to me what you're asking. Why just one fund? What does your entire portfolio look like?

Maybe start here: https://www.bogleheads.org/wiki/Bogleheads®_investing_start-up_kit

 

[beernutzbob]

Do you want one fund to support a 100/0 AA? How much international equity exposure do you want?

Knowing the expense ratios of your options would be helpful.

 

[F.I.R.E User]

Vscpx

To mimic VTSAX or FZROZ?

 

[F.I.R.E User]

If you want to emulate VTSAX with the funds available in your 401K:

85% FXAIX.
15% VSCPX

That gives the best approximation of the total USA market with what's listed. It should be very close performance match. If you want only one fund, the S&P500 index, FXAIX, is the closest one fund approach to VTSAX but will vary in performance a percent point or two, year to year.

How did you figure the 85/15 %?

 

[F.I.R.E User]

Good suggestion.

But OP did say he wanted "one fund".

Would it be better for me to do one fund?

 

[F.I.R.E User]

It's not clear to me what you're asking. Why just one fund? What does your entire portfolio look like?

Maybe start here: https://www.bogleheads.org/wiki/Bogleheads®_investing_start-up_kit

Current selections:

VANGUARD TARGET 2045 - 16%

FID 500 INDEX - 30%

SMALL CAP VANG SM CP IDX IS PL - 13%

FID GLB EX US IDX - 23%

BOND INDEX FUND - 11%

INTERNATIONAL FUND - 7%.


These are my current AA.

 

[Jerry1]

Current selections:

VANGUARD TARGET 2045 - 16%

FID 500 INDEX - 30%

SMALL CAP VANG SM CP IDX IS PL - 13%

FID GLB EX US IDX - 23%

BOND INDEX FUND - 11%

INTERNATIONAL FUND - 7%.


These are my current AA.

And you have no other investments or savings outside of your 401K? Just confirming.

 

[mrfeh]

Current selections:

VANGUARD TARGET 2045 - 16%

FID 500 INDEX - 30%

SMALL CAP VANG SM CP IDX IS PL - 13%

FID GLB EX US IDX - 23%

BOND INDEX FUND - 11%

INTERNATIONAL FUND - 7%.


These are my current AA.

Is that your entire portfolio? You should view your investments in total, not account by account.

If you haven't read the page I linked previously, that's a good place to start.

 

[F.I.R.E User]

And you have no other investments or savings outside of your 401K? Just confirming.

I do.

6 months EF.
Roth IRA (transferring in progress from EJ to Fidelity).
Taxable Vanguard account VTSAX.
ESPP.
Fundrise account.

 

[F.I.R.E User]

vscpx

?

 

[F.I.R.E User]

+1

Agrees with Approximating total stock market - Bogleheads

Trying to figure out the 85/15.

 

[F.I.R.E User]

Passive choices:
Fidelity 500 Index Fund (FXAIX)
Vanguard Small-Cap Index Fund Institutional Plus Shares (VSCPX)
Fidelity Global ex U.S. Index Fund (FSGGX)

100% Fidelity 500 Index Fund (FXAIX) in 401(k)
100% Vanguard Extended Market Index Fund Admiral Shares (VEXAX) in Roth IRA

I will buy FZROX for Roth IRA because it’s $75 a buy to buy Vanguard funds at Fidelity.

 

[nwsteve]

I will buy FZROX for Roth IRA because it’s $75 a buy to buy Vanguard funds at Fidelity.

Look for the closest Vanguard ETF and buy it instead of mutual fund--no cost at Fido. Fido has a great ETF screener to help you choose.

 

[F.I.R.E User]

Look for the closest Vanguard ETF and buy it instead of mutual fund--no cost at Fido. Fido has a great ETF screener to help you choose.

I could buy VTI. What’s wrong with FZROZ?

 

[target2019]

Passive choices:
Fidelity 500 Index Fund (FXAIX)
Vanguard Small-Cap Index Fund Institutional Plus Shares (VSCPX)
Fidelity Global ex U.S. Index Fund (FSGGX)

100% Fidelity 500 Index Fund (FXAIX) in 401(k)
100% Vanguard Extended Market Index Fund Admiral Shares (VEXAX) in Roth IRA

I will buy FZROX for Roth IRA because it’s $75 a buy to buy Vanguard funds at Fidelity.

100% Fidelity 500 Index Fund (FXAIX) in 401(k)
100% Vanguard Extended Market ETF (VXF) in Roth IRA