Currently my Roth is $6,500 VFFVX (2055 fund) and $1,500 VTI and $1,400 uninvested. trIRA looks the same ($1,300/750). 2016/2017 maxed out.
I bought the VTI because I wanted to play around with my stock/bond ratio. Now I'm thinking about totally getting rid of VFFVX and just building my own 3 fund portfolio. VFFVX has an expense ratio of .16% but if I built my own three fund portfolio(admiral shares version, $10,000 minimum)
VTSAX (stock .05% ER) VBTLX (bond, .06% ER) VTIAX (international .11% ER)
The ETF version of that has the same expense ratios. Investor share versions of those funds have jacked up expense ratios. How much would I save on fees if I switched to this? Is this average expense ratio .07% as opposed to the VFFVX .16%? Am I just paying for peace of mind for not having to remember to rebalance myself?
Also unrelated, but when my VTI(.05%) gets to $3,000, does it automatically switch to VTSMX(.16%)? and then when that reaches $10,000 does it switch to VTSAX(.05%)? Why would I want it to convert to VTSMX with a 3x higher expense ratio? Could I just keep ETFs instead?
BND, VTI, VXUS. That's where I want to start before I start to diversify (Emerging markets? REIT? Growth/value?)
I could do the easy thing right now and place a buy order for VFFVX for $1,400, but personal finance is like a hobby for me and it's something I am truly interested in and passionate about. Therefore I want to do things myself and understand them. Anything and everything helps, thanks!
Submitted April 18, 2017 at 01:13AM by reggiebush62 http://ift.tt/2pvPgLI
