Hi Money Minder,
Man, I am totally lost here. My employer changed things up and switched to Vanguard, and now I’m swimming in a sea of confusion. I’ve been trying to wrap my head around all these options they offer, but it’s like reading a different language.
Instead of all that VTSAX, VTI stuff I keep seeing people talk about, I’m stuck with things like the target retirement date “trust select” funds, the employee benefit index fund, and a bunch of other fancy names.
So, are my choices kind of limited, or am I missing something here? I’ve always just gone with a target date fund and called it a day, but now with a fat raise from my recent promotion, I feel like I should be doing more.
I did my homework and the Employee benefit index fund (M038) seemed like the top performer with 18.91% YTD returns and a tiny 0.007% expense ratio.
If you could shed some light on all of this for me, I’d be forever grateful. Seriously, any advice would be amazing.
Cheers,
Response from THE MONEY MINDER:
Hello There,
Congratulations on your recent promotion and raise! It’s great to see you taking the initiative to understand and improve your financial situation. Switching to Vanguard can be overwhelming at first, especially with all the options available. Your employer seems to offer a limited selection of funds, but that doesn’t mean you can’t make the most of it.
While VTSAX and VTI are popular funds, the choices you mentioned have their own benefits. The Employee Benefit Index Fund with YTD returns of 18.91% and a low expense ratio is an attractive option. It’s important to consider your risk tolerance, investment goals, and time horizon when choosing a fund. If you’re comfortable with a target date fund, sticking with it is a simple and effective way to diversify your investments without much effort on your part.
However, if you’re looking to explore other options, you may want to consider diversifying your portfolio. You could allocate a portion of your investments to the Employee Benefit Index Fund and consider adding the Institutional Total International Stock Market Index Trust for international exposure. Remember to regularly review and adjust your investments as your financial goals evolve.
It’s completely normal to feel lost when navigating the world of investment options, but taking the time to educate yourself is a valuable step towards securing your financial future. Don’t hesitate to reach out to a financial advisor for personalized advice based on your specific circumstances and goals.
All the best from THE MONEY MINDER.
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