Im trying to make sure my 401k is tailored for my situation. I like the 3 fund portfolio approach the bogleheads promote but Im not able to do that with what’s available to me in my 401k account. I’ve narrowed it down to these as far as stocks go. Am I on the right track or way off here? I “think” its diversified but I am very uneducated (BUT LEARNING!) with this stuff.

I know there are no bonds selected but my thinking is I want to be aggressive for 3 years until Im 50. Thoughts?

I have 410k(ish) in my account.

30% (No Ticker but similar to VFFSX) Vanguard Institutional 500 Index Trust

30% (VFWPX) Vanguard FTSE All-World ex-US Index Fund

30% (VIEIX) Vanguard Extended Market Index Fund (mid & small cap)

10% (VSIIX) Vanguard Small-Cap Value Index Fund (Redundant?)

What you have here is very much tilted toward the small/mid-cap companies. That’s a valid strategy, but it’s not what the three-fund portfolio does. The three-fund portfolio owns the entire market, weighted by market cap.

The extended market fund is basically VTSAX minus what’s in the 500 fund. If you want to mimic a US total market fund with what you have available, you’ll buy the 500 trust and the extended market fund in roughly a 4:1 ratio. The small-cap value fund is extra and you can skip it if you’re going with this approach.

If you want to do 70/30 US/international, not weighted toward small caps, skipping bonds for now, you could do 56% 500 trust, 14% extended market, 30% all-world ex-US.

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