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I’ve been 100% S&P index fund for 20+ years and been more than satisfied with the returns
Past performance doesn’t indicate future returns. I’m not a market crash skeptic, but pure S&P500 doesn’t warrant these same returns. I’d personally add international and bond exposure.
Chief
Big home bias here, more international
I would not touch the fund with that expense ratio. You are essentially trying to create a total market fund with the 3 us funds. Look at the historical returns of total market vs sp 500. They are extremely similar.
True, I'm probably overthinking at this point lol. Thank you for your input!
If your plan allows a brokerage sub account then you can invest in ETFs or individual stocks with little to no internal fees. You get very similar performance from the ETF space and not .82% expense. You’re also not as well diversified as I would be with your proposals but that may be the limits of your plan elections. Asset allocation and diversity will get you far starting at 26.
Why is .82% considered a “very high” expense ratio? I switched from FXAIX to FBGRX (blue chip) with a .79% expense ratio, and am willing to roll the dice because if its great returns.
Even a 1-2% higher return with FBGRX over FXAIX is worth it, am I wrong?
Chief
Never invest solely, or even primarily, based on historical returns. Those are not numbers that you can “expect.”
Also FYI the returns that you see are net of expense ratio, though ER isn’t a static number for active funds.
I think this is more complicated than it needs to be. Is there a total market fund like FSKAX? That will get you diversification at market cap weights.
You could just use the SP 500 in the 401k and add some additional small cap or extended market to your IRA or other account
Should you also include like 10% bonds and maybe some international exposure? Global stock fund