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

[RetireeRobert]

Why not go real simple--1 fund.

VSCPX. Small cap index, with very low expense ratio of .03%.

From 1926 thru 2020, small caps indexes returned about 11% annually, while large caps (S&P500) returned about 10% annually. More volatility to small caps, but earlier you said you were prepared to be aggressive and could withstand markets like 2008 and stay the course. You can check at American Association of Individual Investors (AAII) for comparative stats. They just published an article in June issue of their monthly, that's where I got the stats for small caps vs large caps.

[RetireeRobert]

PS---OP, no more questions. As Nike says---"Just do it".

[F.I.R.E User]

Quote:

Originally Posted by RetireeRobert Why not go real simple--1 fund. VSCPX. Small cap index, with very low expense ration of .03%. From 1926 thru 2020, small caps indexes returned about 11% annually, while large caps (S&P500) returned about 10% annually. More volatility to small caps, but earlier you said you were prepared to be aggressive and could withstand markets like 2008 and stay the course. You can check at American Association of Individual Investors (AAII) for comparative stats. They just published an article in June issue of their monthly, that's where I got the stats for small caps vs large caps.

💯% on VSCPX?

So why are funds like VTSAX and FZROX so popular even though it returns less?

[mrfeh]

Quote:

Originally Posted by F.I.R.E User 💯% on VSCPX? So why are funds like VTSAX and FZROX so popular even though it returns less?

No, not 100% in small caps. Don't chase returns; would you put 100% in bitcoin? Simply own the entire market.

I said it once, I'll say it again: read this page:

https://www.bogleheads.org/wiki/Bogl...g_start-up_kit

[F.I.R.E User]

Quote:

Originally Posted by mrfeh No, not 100% in small caps. Don't chase returns; would you put 100% in bitcoin? Simply own the entire market. I said it once, I'll say it again: read this page: https://www.bogleheads.org/wiki/Bogl...g_start-up_kit

What about:

85% FXAIX.
15% VSCPX.

[RetireeRobert]

Quote:

Originally Posted by mrfeh No, not 100% in small caps. Don't chase returns; would you put 100% in bitcoin? Simply own the entire market. I said it once, I'll say it again: read this page: https://www.bogleheads.org/wiki/Bogl...g_start-up_kit

OP said he wanted maximum aggressive and could withstand the bad markets.

Small cap fits the bill. The small cap index fund does offer diversification, that fund tracks similar to the Russell 2000 index.

Comparing a small cap broadly diversified index fund to Bitcoin is apples to kiwis.

[F.I.R.E User]

Quote:

Originally Posted by RetireeRobert OP said he wanted maximum aggressive and could withstand the bad markets. Small cap fits the bill. The small cap index fund does offer diversification, that fund tracks similar to the Russell 2000 index. Comparing a small cap broadly diversified index fund to Bitcoin is apples to kiwis.

So the difference in returns are 1%?

[RunningBum]

Every one of these threads remind me of John Candy and Macaulay Culkin in Uncle Buck
https://youtu.be/jpvkUdMu60A

[RobbieB]

Maximum aggressive is put everything in 1 stock. Roll the dice. Funds are not maximum aggressive.

[F.I.R.E User]

Quote:

Originally Posted by RobbieB Maximum aggressive is put everything in 1 stock. Roll the dice. Funds are not maximum aggressive.

I see maybe I used the wrong term. Aggressive is the right term?

[F.I.R.E User]

Quote:

Originally Posted by RunningBum Every one of these threads remind me of John Candy and Macaulay Culkin in Uncle Buck https://youtu.be/jpvkUdMu60A

Home Alone movie? Oh, Uncle Buck.

[mrfeh]

Quote:

Originally Posted by F.I.R.E User What about: 85% FXAIX. 15% VSCPX.

That's fine; it approximates total US equities.

[F.I.R.E User]

Quote:

Originally Posted by mrfeh That's fine; it approximates total US equities.

I just made the change to this in my Fidelity account.

[RetireeRobert]

Quote:

Originally Posted by F.I.R.E User So the difference in returns are 1%?

Large caps index (S &P500) about 10% annually from 1926 thru 2020. Small caps index about 11% annually for that period.

So small caps index gave a ten percent (10%) "greater return" than large caps index.

(The difference "in annual return" between small caps and large caps is one percent. So if the large caps total return annually is ten percent, then 1 divided by 10 = ten percent "greater return" using small caps than large caps. Or to say it another way, 11 is ten percent greater than 10.)

[F.I.R.E User]

Quote:

Originally Posted by RetireeRobert Large caps index (S &P500) about 10% annually from 1926 thru 2020. Small caps index about 11% annually for that period. So small caps index gave a ten percent (10%) "greater return" than large caps index. (The difference "in annual return" between small caps and large caps is one percent. So if the large caps total return annually is ten percent, then 1 divided by 10 = ten percent "greater return" using small caps than large caps. Or to say it another way, 11 is ten percent greater than 10.)

Thanks for details.

[F.I.R.E User]

I got this email today from Fidelity:


NEW! AFTER-TAX CONTRIBUTIONS

If you have already made the maximum pretax and/or Roth contribution possible (including catch-up contributions if eligible), consider making an after-tax contribution to save even more for your retirement. You can contribute up to $10,000 annually after-tax. After-tax contributions are not matched.

So there is a limit of $10k?

[F.I.R.E User]

I am using 85% FXAIX and 15% VSCPX so why does it Account show old fund investments still?

[F.I.R.E User]

Why am I still invested in other funds in my 401k account? I only have the 2 funds in it. I thought it auto sells others?

[SevenUp]

Quote:

Originally Posted by F.I.R.E User I got this email today from Fidelity: NEW! AFTER-TAX CONTRIBUTIONS If you have already made the maximum pretax and/or Roth contribution possible (including catch-up contributions if eligible), consider making an after-tax contribution to save even more for your retirement. You can contribute up to $10,000 annually after-tax. After-tax contributions are not matched. So there is a limit of $10k?

Not per the IRS, but your company may impose such a limit.

[SevenUp]

Quote:

Originally Posted by F.I.R.E User Why am I still invested in other funds in my 401k account? I only have the 2 funds in it. I thought it auto sells others?

Apparently not. Perhaps you directed new contributions to the 2 funds, but did not adjust the allocation of already-invested funds?