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Investing/Strategies / Retirement Investing
|Subject: Re: Secrets of the 0.2%||Date: 1/22/2012 12:42 PM|
|Author: wolfman225||Number: 69959 of 80200|
This talk of high fees in 401k plan fund selections has me a little confused. In making my selections, I tried to keep in mind the Fool's advice of keeping any fees/transaction costs under 2%. Should I aim lower than that? My 401k, while new, has done relatively well (at least for this first year), considering all of the volatility. Here's a breakdown of expense ratios
Vanguard Total Stock Market Index........... 0.07%
MainStay Large Cap Growth................... 1.04%
Perkins Mid Cap Value....................... 0.83%
Select Mid Cap Growth (TRP/Frontier)........ 0.86%
Selec Sm Cap Growth Eq (W&R/Wellington)..... 0.99%
Euro-Pacific Growth......................... 0.85%
Each of these is the lowest in expenses of those available in my plan for each sector. The only real dog I have right now is the Euro-Pacific Growth fund (my smallest holding, @ 5%). Unsurprising, given the events in Europe.
Would any of you say that these expenses are out of line?
I'm currently contributing 20% pre-tax to the 401k along with a small company match of 3%. I am also putting the $5000 max into a ROTH IRA built around dividend payers in a modified DOD/FF approach (I call it a "Foolish Five". This amounts to a total contribution to retirement of appx. 35% of gross income.
I'm being as aggressive as I am in an attempt to "catch-up" after a divorce in my late 40's. Projecting potential results using historical rates of return for the market in general shows me to be on the edge. If SS is still around in anything like it's current form in 20yrs, I'm golden. If not, different calculators show that I stand to run through my money between age 85-100. Any opinions? I also have set up my contribution schedule to automatically increase by 1% each year.
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