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Question about Two Vanguard Funds

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  • Question about Two Vanguard Funds

    Hello,

    I am looking to add additional funds to my current 401k that would be representative of the Total US Stock Market. The three funds with the lowest expense ratios are the John Hancock 500 Index Fund (JFIVX/JHVIT) at 1.39% as well as the Vanguard Growth Index Fund (VIGAX) and Vanguard Value Index (VVIAX) which both are 1.40%. There are no Total Stock funds available like the Vanguard Total Stock Market. My current plan is the use the Vanguard funds since they are much larger and I could not find the John Hancock fund on the Morningstar website which makes me question its reliability. If I do a 50-50 ratio of both Vanguard Funds listed above will that be a close representation of the Total US Stock Market? If not which ratio would you choose. Thanks in advance!

  • #2
    Those expense ratios make me sad and angry.

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    • #3
      Growth and value are two specific subsections of the market and would not consider them a substitute of a total market fund in any shape. Those are some high fees, yikes

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      • #4
        I know right! We are a very small medical office that has the 401k is set-up through Northwestern Mutual. I have brought up switching 401ks with my employer several times due to that exact issue. Unfortunately, nothing has been acted on yet. They seem to be more concerned about paying the yearly third party administrator fees than the expense ratios. I would assume they don't have much money in the account yet and that its tied up in the buildings/practice at this time. I'm going to keep working on it.

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        • #5
          are you sure the expense ratios are right?  on vanguard.com those funds are .05%

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          • #6
            https://www.azcentral.com/story/money/business/consumers/2019/08/25/401-k-plan-lawsuits-rise-unhappy-employees-retirement-investment-options/2064025001/

             

            You should share this to your employer.

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            • #7
              Thanks for the link. Yes, those are the correct expense ratios. The adviser from Northwestern Mutual and John Hancock both get the difference between the expense ratio I pay and the actual expense ratio.

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              • #8
                Just use s&p 500.

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                • #9
                  You (and your employer) are being robbed.

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