r/BogleheadsAutre
401k Asset Allocation Dilemma
15 votes·24 commentaires·il y a 3mois
Contenu original
Im performing my annual account rebalances across all my retirement accounts. In my 401k we have access to FXAIX - great, it’s an extremely low cost index tracking S&P funds. The challenge is for mid cap, small cap, and international - we don’t have access to index funds with extremely low fees, they’re not offered. We only have actively managed funds in these classes. The data and studies are clear. Actively managed funds perform worse than index funds over a long enough time horizon, AND they’re more expensive. But I also know diversification is critical. So the question - how do I balance the need for diversification across different asset classes with the desire to stay away from high- cost actively managed funds?
Meilleur commentaire
“While I prefer total market funds, I would also argue that an S&P 500 fund is "good enough." It is very closely correlated to the total market. That said, you can easily fix this by investing in an extended market fund and an international fund in your IRA. Just overweight those sectors in another account.”