Which 401k fund to choose... (bonds, IRA, balanced fund, fees)

[Compuhi]

My companies 401k partner changed and now we can jump into vanguard funds. Very happy about this change as it opens up more options and less costs for us.

My co automatically moved my 401k into the Vanguard Target Retirement 2030 (VTHRX). I am in my mid 30's, so this fund looks a bit too 'safe' for me, especially with ~24% bonds.

I am considering jumping into Vanguard Target Retirement 2050 Inv (VFIFX) to give me more % in stock, with ~9% in bonds.

I also see we have the ability to put our money into Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX)... Looks like minimum is $10k (i would put all ~$100k into it).

What does 'admiral' offer above the standard funds?

Morningstar shows all three with 4 stars and 'gold' rated.

Thoughts on these two options? Thanks!

[Petunia 100]

The admiral shares have lower costs than the investor shares.

Vanguard's Target Retirement funds include Total Stock Market (investor shares) as well as Total International, Total Bond, and Total International Bond. So, your money is spread around a bit more and the fees are a bit higher.

Personally, I do not think that VTSAX all by itself is a complete portfolio. You may think differently. Or, you may have other pots of money.

[rjm1cc]

At 30 and with interest rates low I would skip bonds. Probably go for a total stock index. I would look for some diversification to foreign stocks if you can.

[mysticaltyger]

Originally Posted by rjm1cc

At 30 and with interest rates low I would skip bonds. Probably go for a total stock index. I would look for some diversification to foreign stocks if you can.

I disagree. Most people can't handle the volatility of being 100% in stocks, regardless of their age.

OP, are their any options between the 2030 fund and the 2050 fund? I think 9% in bonds is a little aggressive. I think the 2050 fund would work.

Personally, I like a balanced fund like Vanguard Wellington. It's probably a fund you could hold for your whole lifetime, but I understand that may not be an option for you.

[Compuhi]

If there wellington was an option, i would absolutely park everything there for the long haul. their 2040 retirement fund is pretty similar to the 2050.

[mysticaltyger]

Originally Posted by Compuhi

If there wellington was an option, i would absolutely park everything there for the long haul. their 2040 retirement fund is pretty similar to the 2050.

Just pick one of the two and go with it. I'd opt for 2040 or 2030.