Reply To: Roth 401k Contribution

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Petunia 100

In my opinion, the Vanguard TR funds are excellent. Broadly diversified total market index funds and rock bottom costs, all automatically rebalanced for you. I own the 2030 fund myself, in both my employer’s plan and my Roth IRA.

You’re not adding any diversity with the other two funds, you’re just changing your asset allocation a bit. Your TR fund holds Total US Stock Market, which is about 70% comprised of the S & P 500 (the rest is mid- and small-cap stocks). Your TR fund holds Total International Stock Market, which includes thousands of foreign stocks from all over the world, both developed and emerging markets.

I wouldn’t say it’s a bad move, I think it’s more of an unnecessary move.