Hi all!
I've been helped a ton by this community before, so thought I'd come back with a question. I and my spouse are in the accumulation phase and are looking to FIRE in 15 years (or less!). We're just now starting in earnest and our plan looks like this moving forward:
Current net worth: $105,000 Monthly investment amount: $8,500 (inclusive of employee contributions, 5% matched and 5% unmatched) This is split between mine and my spouse's 457(b)'s (maxed out), contributing about $1,700 to my spouse's 403(b) and up to the employee match in mine Right now we are just investing in VIIIX, which is the closest to a simple index fund our employer has FI number: between 3.1M-3.5M
I've been really influenced by the Bogleheads, JL Collins, and fully planned on the very simple path. But in looking at my employer's investment options more closely, I see they have the actively managed JLGMX. This fund has lifetime returns over 11%, and 10 year returns over 17%. The expense ratio is 0.44 (compared to VIIIX's 0.02). So I found a calculator to see if JLGMX, with its life of fund return, still beat out VIIIX, which it does.
I then went to portfolio visualizer and modeled a 15 year time horizon with 100% VIIIX, 75%VIIIX/25% JLGMX, and 50/50, and the portfolio with 25% JLGMX had a huge jump from the only VIIIX fund, the 50/50 portfolio only slightly higher than the 75/25 one. Which got me wondering if I might want to add 25%-50 of JLGMX.
It seems that JLGMX is a newer fund, it's actively managed and there's no guarantee that the next manager will have the same returns. This fund could be absolutely terrible in the next ten years. Bogle and Collins are on my shoulder saying just stick with the VIIIX, but I do wonder if anyone has any insight into whether this could be a good move, maybe shortening our FI timeline.
And, to be sure I'm equally open to being convinced that JLGMX is completely a wrong move. Either way, just help me understand how you all are thinking about this. I have so much respect for this community!
Thanks everyone! submitted by /u/Funny_Song2085
[link] [comments]
I've been helped a ton by this community before, so thought I'd come back with a question. I and my spouse are in the accumulation phase and are looking to FIRE in 15 years (or less!). We're just now starting in earnest and our plan looks like this moving forward:
Current net worth: $105,000 Monthly investment amount: $8,500 (inclusive of employee contributions, 5% matched and 5% unmatched) This is split between mine and my spouse's 457(b)'s (maxed out), contributing about $1,700 to my spouse's 403(b) and up to the employee match in mine Right now we are just investing in VIIIX, which is the closest to a simple index fund our employer has FI number: between 3.1M-3.5M
I've been really influenced by the Bogleheads, JL Collins, and fully planned on the very simple path. But in looking at my employer's investment options more closely, I see they have the actively managed JLGMX. This fund has lifetime returns over 11%, and 10 year returns over 17%. The expense ratio is 0.44 (compared to VIIIX's 0.02). So I found a calculator to see if JLGMX, with its life of fund return, still beat out VIIIX, which it does.
I then went to portfolio visualizer and modeled a 15 year time horizon with 100% VIIIX, 75%VIIIX/25% JLGMX, and 50/50, and the portfolio with 25% JLGMX had a huge jump from the only VIIIX fund, the 50/50 portfolio only slightly higher than the 75/25 one. Which got me wondering if I might want to add 25%-50 of JLGMX.
It seems that JLGMX is a newer fund, it's actively managed and there's no guarantee that the next manager will have the same returns. This fund could be absolutely terrible in the next ten years. Bogle and Collins are on my shoulder saying just stick with the VIIIX, but I do wonder if anyone has any insight into whether this could be a good move, maybe shortening our FI timeline.
And, to be sure I'm equally open to being convinced that JLGMX is completely a wrong move. Either way, just help me understand how you all are thinking about this. I have so much respect for this community!
Thanks everyone! submitted by /u/Funny_Song2085
[link] [comments]