Have everything in Schwab.
Portfolio is a modified ben felix portfolio with a small allocation to qmom and individual stocks. No bonds
Ask HN: Where do you keep your 401k investments?
61–70 of 73 posts
Re: Ask HN: Where do you keep your 401k investments?
#6250% VTI (US Total Market Index), 25% AVUV (US Small-cap value), 25% AVDV (Developed World Ex-US Small-cap value) Important to note I still have, if I'm lucky, 35 years or more until retirement. I'm betting the value factor premium will re-emerge at some point during that time. As I get closer to retirement I'll rotate into more broadly diversified/conservative stocks, but I see little point in holding bond funds in a…
What's your reasoning for ditching VEA and emerging markets?
Re: Ask HN: Where do you keep your 401k investments?
#63Have a financial advisor manage it on my behalf. They know the schedule of risk, but at least a portion of it will be in Vanguard (Fidelity), slowly phasing out stock for bonds as I become a decrepit cripple.
Got an idea how much he/she/they are charging you in fees?
- he/she/they
+ they
Re: Ask HN: Where do you keep your 401k investments?
#64Are you old enough to have experienced a bear market? Investing 100% in stocks can suffer big drawdowns when there is an extended bear market say down 40% over several years. I would diversify with small portions (5-10% each) in gold, crypto, bonds and cash. If you are dollar cost averaging into stocks it's important to keep investing when stocks are going down. Also assume you own your own home - if not that should be your first priority.
Re: Ask HN: Where do you keep your 401k investments?
#65Earlier quoted context omitted.
0.9% of managed assets.
https://www.forbes.com/sites/robertberger/2021/02/05/how-a-1... Hope they're doing more for you then just managing your investments
Yes, they're managing more effectively than I could ever hope to. I don't have the time nor the knowledge.
I'll die with more than I will ever need. But thanks for the concern.
Re: Ask HN: Where do you keep your 401k investments?
#6650% VTI (US Total Market Index), 25% AVUV (US Small-cap value), 25% AVDV (Developed World Ex-US Small-cap value) Important to note I still have, if I'm lucky, 35 years or more until retirement. I'm betting the value factor premium will re-emerge at some point during that time. As I get closer to retirement I'll rotate into more broadly diversified/conservative stocks, but I see little point in holding bond funds in a…
What's your reasoning for ditching VEA and emerging markets?
I ditched large cap international because of the example of the Japanese stock market, where from 1990 - 2019 the Japanese market as a whole stagnated but Japanese small cap value stocks delivered between 5.4% and 8% annualized depending on whose index you're using.
https://www.pwlcapital.com/wp-content/uploads/2020/12/Five-F... (Page 19)
Given population demographics, I see most of Europe and developed Asia going the way of Japan and am betting their equity markets will show similar characteristics. Never mind that even during good times there has been a historical small-cap value premium in most of those regions, although not as pronounced as in the US.
Ditching emerging markets is part practical part political. The practical aspect is most emerging market funds have a sizeable allocation to Chinese stocks. Chinese stocks have failed to produce reliable returns and are incredibly distorted by the Chinese government picking winners and losers, sometimes at gunpoint. I don't want to bet my financial future on how Xi feels about his breakfast on any given morning. Additionally, China is a geopolitical adversary. Yes it's impossible to completely cut them out of one's supply chain, but I can avoid directly boosting their financial markets.
As for the few emerging markets funds that don't include China, they include other nations such as Saudi Arabia that I'm hesitant to actively invest in for political reasons. I also think emerging markets in general are going to get screwed for the next few decades as globalization declines, climate change becomes more impactful, and the world generally becomes more dangerous and chaotic. There may be money to be made in EM, but I doubt it will be consistent or as simple as investing in an EM index fund.
Re: Ask HN: Where do you keep your 401k investments?
#67was in similar position -- rolled all previous employers into vanguard IRA, self directed; VTI, NVDA, JPM, COST, MRK... have not regretted decision to take direct control
Are you listing all of the stock tickers you invested in, or are we only getting a curated subset? People overestimate their ability to pick stocks when they are up. Not everyone gets lucky. (For the record, I am up a lot but I sold my NVDA way too early to take advantage of the current hockey stick)
I listed the largest positions accounting for majority of $ invested and majority of portfolio.
I definitely have other bets which did NOT work out; FSLY -90.58%, ZIZTF -76.81%. These were smaller bets, I'm still bag holding hoping Nightingale turns it 'round @ FSLY.
I recently exited AAPL in May, which turned out to be a poor move.
I'm definitely NOT great at picking stocks and I probably do overestimate my ability. Look at my horrible FSLY pandemic trade.
Taking direct control and responsibility has been a good learning and overall financially rewarding experience for me.
Re: Ask HN: Where do you keep your 401k investments?
#68Re: Ask HN: Where do you keep your 401k investments?
#69Re: Ask HN: Where do you keep your 401k investments?
#70Earlier quoted context omitted.
.25% on top of any investments you have through them, on top of the fund expense ratio https://www.betterment.com/pricing That is 62k gone to fees assuming: 12k start, 12k put in per year. for 30 years at 7%.
People don't realise that the opportunity cost of those fees is compounding money. In your example that 67k is 4.8% of your investments. And that's not including the fees of the ETF or mutual funds you get invested in. I would never even think about touching this service - why would anyone use this?
Because it's easy. If someone's eyes glazes over before you get to the third Q in QQQ, and they're not going to entertain a conversation over Roth and 401k, some place to just money over to for retirement is very attractive.