401k diversification
I currently have 2 index funds that both are stock investments: 1) Vanguard IS S&P500 IDX (~35k) 2) Vanguard Russell 1000 Growth Index Trust (~30k) Should I be diversifying my 401k more? I.e getting other different funds? What’s your strategy? Would love to learn more! TC: 200k YoE: 3 #Money #investing
Aren’t you already diversifying by buying index funds? You don’t even need 2, one works just fine. Also, switch to VOO. .03% expense ratio compared to .14% that you’re using for sp500.
That’s not necessarily true. Some index funds are within a given sector right? The Vanguard one is purely stocks with no bonds, CDs, etc. But yeah, will check out VOO.
You can include REITs I guess, but bonds and CDs haven’t historically out performed the sp500. They are more tools for when you want a safe investment, maybe like 5 years before retirement. Early on you can take on more risk. I suggest planning all this out with a financial advisor though rather than taking my word for it.
I am 50% VTI and 50% VXUS
For the next 10 years buying and owning tech stocks I’m happy, nvidia tesla Microsoft googl some arkg(for genomics) I own I sold all my VTI and index and and DCAing into these. I feel like cloud AI data has got a long way to go in terms of creating value
I’m buying above stocks in my 401k, don’t have any s&p , I think above and I forgot amazon , is enough diversification for me
Wait how are you buying individual stocks in 401k? Your employer allows that?
Yes! Self directed brokerage account
I am 50% vti and 50% arkk
Sneeds seed n feed is a good investment