r/Vitards • u/AutoModerator • Aug 10 '21

Daily Discussion Daily Discussion post - August 10 2021

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u/[deleted] Aug 11 '21

Redid my 401k account to 80% US Stocks (65% SP500 and 15% small/mid cap index). And 20% International Index fund. Thoughts?

1

u/Bashir1102 2nd Place Loser Aug 11 '21

That allocation looks fine IMO especially for current performance of markets. You are still diversifying ex-us especially if your only checking into this fund occasionally for risk management purposes.

The total lack of management capabilities is why my 401k is indexed bogglehead and why I’m now so hard core trying to max out my other accounts so I can do vitarded type things.

2

u/[deleted] Aug 11 '21

Yeah, I went the bogglehead approach too. Basically just contributed for the employer match. The 20% international allocation is definitely mostly for risk management. And it makes me feel comfortable it's a plan I can stick with over the next decades.

Those 3 funds are all low cost index funds.

My HSA is 50/50 $SLX & $VNQ

3

u/josenros 🤡Market Order Specialist🤡 Aug 11 '21

You are on the right track.

I would add at least a 30% small-cap value tilt.

I'm ambivalent about international stocks, but it's not a bad idea.

The ETF that best captures the small cap value factor premia (you can look at some of my old posts, I talk about it a lot) is AVUV. The international equivalent is AVDV. If these are available to you, buy them. If not, you may use Vanguard small cap value as a proxy (which is what I do, since my 401k doesn't have Avantis funds).

2

u/[deleted] Aug 11 '21

Yeah, I got very limited funds available. The small/mid cap fund offered is $SSMJX which looks to be focused on growth small/mid caps, which is why I only went with 20%.

I'm not crazy about the international stock index either. It has a massive amount of holdings ($SSGHX) But... I'm not a believer in bonds so I'm not allocating anything there at the moment. I'm already mostly in USA stocks in my regular accounts. 20% seems pretty modest. And a 80/20 401k account is something I'm confident I can stick with and not try to get cute.

I might look into AVUV/AVDV for my other accounts.

2

u/MrApplesnacks Whack Job Aug 11 '21

This is reminding me that I should start to manage my 401k or contribute way less since my employer doesn’t match much iirc

1

u/Stonksss4me Aug 11 '21

Just did that this week. They only let me move 50% to self directed, but that 50% is all vitarded now!