401k help with Vanguard

[vital]

I'm 26, making 45k and have about 20k debt in student loans.
Which option should I invest my 401k contribution towards? Conservative, Growth, or Moderate fund?

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[her209]

Growth...

 

[mchammer]

Use all of employer match.

 

[thomsbrain]

Originally posted by: mchammer
Use all of employer match.

way to read the question! :roll:


to the OP:
i am of similar age and income (no debt, though), and am focused on growth, spread through a lot of sectors, with a little conservative "stable value" as a hedge. but i'm not financial expert. it just seems like common sense, because right now we're not looking at a ton of money that i need to protect. 10 years from now i will probably change how i have it invested.

 

[alrocky]

Vanguard LifeStrategy Growth Fund (VASGX) is comprised of:

50.0% Vanguard Total Stock Market Index Fund
24.8% Vanguard Asset Allocation Fund
15.3% Vanguard Total International Stock Index Fund
9.9% Vanguard Total Bond Market Index Fund

and would typically be more appropriate for someone your age. The other options are a bit conservative. Are the 3 funds you listed the only ones available for you in your 401(k)?

 

[vital]

Originally posted by: alrocky
Vanguard LifeStrategy Growth Fund (VASGX) is comprised of:

50.0% Vanguard Total Stock Market Index Fund
24.8% Vanguard Asset Allocation Fund
15.3% Vanguard Total International Stock Index Fund
9.9% Vanguard Total Bond Market Index Fund

and would typically be more appropriate for someone your age. The other options are a bit conservative. Are the 3 funds you listed the only ones available for you in your 401(k)?

I have about 20% of my 401k towards my company stock purchase fund and the rest towards lifestrategy fund.. I can choose other funds like:

Short-Term Reserves
Vanguard Prime Money Mkt Fund
Bond Funds
Vanguard Short-Term Bond Index Inv 0.0% %
Vanguard Total Bond Mkt Index Inv 0.0% %
Domestic Stock Funds
Vanguard 500 Index Fund Inv 0.0% %
Vanguard Mid-Cap Index Fund Inv 0.0% %
Vanguard Small-Cap Index Fund Inv 0.0% %
International Stock Funds
Vanguard Developed Markets Index 0.0% %
Client-Specific Funds
Stk Purchase Fund 0.0% %
Supplemental funds
Short-Term Reserves
Vanguard Retire Savings Tr A 0.0% %
Bond Funds
PIMCO Total Ret Instl 0.0% %
Domestic Stock Funds
Dodge & Cox Stock 0.0% %
Longleaf Partners Sm-Cap 0.0% %
T. Rowe Price Mid Gr Adv 0.0% %
T. Rowe Price Mid Val 0.0% %
Vanguard Explorer Fund Investor 0.0% %
Vanguard PRIMECAP Fund Investor 0.0% %
Vanguard Windsor Fund Investor 0.0% %
International Stock Funds
Morgan Stan Ins Em Mkt A 0.0% %
Vanguard International Growth Inv

 

[DaveSimmons]

I have about 20% of my 401k towards my company stock purchase fund

do you get any special very high discount or extra matching for doing this? If not, there is no reason to do it.

The Vanguard fund looks good -- 75% index based, with a mix of US, international, and bonds.

 

[Yossarian]

at your age go with the "Balls Out Growth" fund.

 

[probzy]

Growth

 

[vital]

Originally posted by: DaveSimmons

I have about 20% of my 401k towards my company stock purchase fund

do you get any special very high discount or extra matching for doing this? If not, there is no reason to do it.

The Vanguard fund looks good -- 75% index based, with a mix of US, international, and bonds.

My company is restructuring for an IPO so that's why.. and there's a big employee ownership culture as well..

 

[alrocky]

Expense Ratio
0.18 Vanguard 500 Index Fund Inv -M* Pick-
0.22 Vanguard Mid-Cap Index Fund Inv -M* Pick-
0.23 Vanguard Small-Cap Index Fund Inv
0.29 Vanguard Developed Markets Index

0.52 Dodge & Cox Stock -M* Pick- -closed-
0.93 Longleaf Partners Sm-Cap -M* Pick- -closed-
0.80 T. Rowe Price Mid Gr -closed-
0.82 T. Rowe Price Mid Val -M* Pick- -closed-
0.51 Vanguard Explorer Fund Investor -M* Pick- -closed-
0.45 Vanguard PRIMECAP Fund Investor -M* Pick- -closed-
0.36 Vanguard Windsor Fund Investor

1.41 Morgan Stan Ins Em Mkt A
0.58 Vanguard International Growth Inv

----

Wow! A nice list of stock funds to pick from. Most are Morningstar Analyst Picks and are closed to the general public. The 'knock' on VASGX is the inclusion of the Asset Allocation Fund. Otherwise it's good as a one fund portfolio or as the core fund that you can build around. Were you going to stick with VASGX or did you want to build around it?

 

[FoBoT]

half in S&P 500 index and the other half in small cap index fund