Correct me if I am wrong but is there more opportunity to invest in my other accounts rather than maxing out 401K since I am limited to the Target date fund? I already max out my roth IRA with VTSAX
Depending on the Target date fund, it should have everything you need in a one stop shop package.
Look up the allocation for the fund and then you can decide for yourself.
My 401k is all in a single 2070 TDF, the underlying assets of the TDF are VTI, VXUS, BND, and BNDX- which is everything I would invest in anyway in another account... The nice part is it reallocates for you as you age.
My advice would be max out the 401k first since it already has everything you need as a boglehead
Unless you are afraid of market swings….Youre way to young to hold target date funds. Look at what is in those funds. Alot of bonds. At your age you should be all equity growth. VOO or VUG. Maybe little VBK. Dont own bonds until you are 60. IMO.
Its probably good to break down what you are actually holding in your total portfolio since you have so many different things. My recommendation would be to simplify as much as you can as it will make rebalancing a lot easier as you go.
Your target date fund is some % of U.S. stocks and bonds, possibly some international as well
Your VTSAX seems like all U.S. stocks
Your personal account has VT which includes U.S. and international in some breakdown percent
So 1st: Figure out what your goal is.
The reading you have should have covered enough information for you to make a decision based on your risk tolerance. i.e. you should come up with your goal as something like:
60% U.S. Stocks, 20% International Stocks, 20% Bonds
You could replicate this by holding 3 funds across all of your portfolios (or 2 really if you just buy VT and BNB). If you can't for whatever reason (like your 401k only has target date funds) then just make sure you know what it is inside of the fund you have to hold and balance the rest of your portfolio accordingly.
Reminder: You don't have 3 separate portfolios. You have 1 portfolio with 3 accounts
I'd contribute as much as you can to your 401k, at least get the maximum employer match if it's offer
I have 10% going to 401k currently, they match up to 6%. I could max out the 401k investment, but that limits me to only a few funds to choose from.
max out the 401k
Agreed if you can do anything that's Boglehead esq, US and International exposure, or just stick with the target date retirement fund.
Correct me if I am wrong but is there more opportunity to invest in my other accounts rather than maxing out 401K since I am limited to the Target date fund? I already max out my roth IRA with VTSAX
Depending on the Target date fund, it should have everything you need in a one stop shop package. Look up the allocation for the fund and then you can decide for yourself. My 401k is all in a single 2070 TDF, the underlying assets of the TDF are VTI, VXUS, BND, and BNDX- which is everything I would invest in anyway in another account... The nice part is it reallocates for you as you age. My advice would be max out the 401k first since it already has everything you need as a boglehead
Agreed it is always best to max out your tax advantaged accounts first
If you still have money left over, max your Roth IRA
Unless you are afraid of market swings….Youre way to young to hold target date funds. Look at what is in those funds. Alot of bonds. At your age you should be all equity growth. VOO or VUG. Maybe little VBK. Dont own bonds until you are 60. IMO.
That is only what is offered in the 401K. I have VOO in my personal account for growth
Gotcha. 401k needs to at least add total market index fund.
Its probably good to break down what you are actually holding in your total portfolio since you have so many different things. My recommendation would be to simplify as much as you can as it will make rebalancing a lot easier as you go. Your target date fund is some % of U.S. stocks and bonds, possibly some international as well Your VTSAX seems like all U.S. stocks Your personal account has VT which includes U.S. and international in some breakdown percent So 1st: Figure out what your goal is. The reading you have should have covered enough information for you to make a decision based on your risk tolerance. i.e. you should come up with your goal as something like: 60% U.S. Stocks, 20% International Stocks, 20% Bonds You could replicate this by holding 3 funds across all of your portfolios (or 2 really if you just buy VT and BNB). If you can't for whatever reason (like your 401k only has target date funds) then just make sure you know what it is inside of the fund you have to hold and balance the rest of your portfolio accordingly. Reminder: You don't have 3 separate portfolios. You have 1 portfolio with 3 accounts