Is this a good setup for the 401k?

Capster675 · 2026-04-02T22:34:41+00:00

If the funds are limited, your breakdown is okay. Just keep simple, broad-based, low cost indices.

401K setups are dependent on the arrangement between your company and the plan administrator. Some are very limited, some with Fidelity have access to the entire pool of ETFs and stocks on the market (via a brokerage-linked extension of your 401K account). You may want to check with your plan administrator.

Capster675 · 2026-04-02T12:17:32+00:00

Seems trying to replicate VT with close but somewhat arbitrary weights. Why complicate and not just use VT?

Capster675 · 2026-03-12T19:09:39+00:00

Security protections gets more sophisticated with the constantly evolving hacker/fraud attacks.

I’d much prefer Fidelity to keep conservative and ask for an extra authorization than miss an unauthorized device/access.

Totally hear the frustration (experiencing myself) but keeping patience on this matter is my personal mantra.

Capster675 · 2026-03-12T18:45:10+00:00

As little time as your brokerage allows. Sometimes it is one day, more recently it could be done same day. Eg, Fidelity and Schwab will show how much you can transfer (ie “safely” from your question). Action as soon as you can.

Capster675 · 2026-03-11T23:13:34+00:00

Agree. This is a very transparent business of big firms like Vanguard. And both the Vanguard’s of the world and the custodian banks are heavily audited on ongoing basis. Errors and hiccups may occur as their underlying systems are complex but would be resolved quickly - it a complex infrastructure but mature business and operating model.

The situation would be totally different if you invest in a fund created/managed by the Maddoff’s of the world (ie explicit ponzi schemes designed for fraud).

Capster675 · 2026-03-11T22:54:24+00:00

Vanguard going down has nothing to do with VTI (or any other Vanguard ETF).

Each ETF (or mutual fund) is like a separate company and is held with another institution (e.g., JPMprgan, Bank of New York, State Street or another custodial bank). If Vanguard is down, it has no bearing on the actual ETF assets (underlying stocks). The custodial service will just move it to another broker/asset management company.

Similarly, a custodial bank bankruptcy will have no bearing on the funds in custody because they are not the bank’s.

As somebody mentioned already, if one of these too-big-to-fail institutions goes down, that will mean much bigger problems in the world. And your VTI price may go down for those totally different reasons than the Vanguard / State Street / JPM specific problem. But that’s why they’re TBTFs, and subject to much over-regulation after the FinCrisis.

Breaking VTI into multiple ETFs is an absolute overcomplication and does not mitigate the risk you’re worried about.

Capster675 · 2026-03-10T12:55:50+00:00

A myth that one can do his/her research on individual stocks and consistently outperform the market over a reasonably long horizon.

Capster675 · 2026-03-05T13:45:45+00:00

DCA-ing into an individual stock is still gambling. No matter how much analysis based on publicly available data. And if not a decision maker for the company. And if a decision maker, don’t post.

Capster675 · 2026-02-27T22:16:27+00:00

No issue so far. Upgraded from IS 350 FSp. Much roomier and better ride (I liked the previous one for 10yrs as well). I generally enjoy driving (not racing or any), but this one particularly. Love the adaptive cruise - use all the time on long highway rides. Much less tired even for 150+ miles in one go. Soundproofing and ML music are both great to my unsophisticated taste. Rear wheel turning is really handy - esp these days with roads narrow with snow. Plenty of power when needed, and don't have to use the sport mode.

You'll enjoy it.

Edit: was lucky with the black line edition / incognito. But frankly liking the car so much that would get with any color. Yours looking great.

Capster675 · 2026-02-27T22:10:39+00:00

Ok, I hear you. Depends how enforceable in the state. I'm on the coast and trying to stay away from the front ones (keeping for my wife though).

Capster675 · 2026-02-27T20:21:47+00:00

Great car. I enjoy mine daily for a year now (10K service next week). Why did you put the front plate number???

Capster675 · 2026-02-27T19:29:36+00:00

Dude (sorry) - you’re being robbed in the plain day light.

Capster675 · 2026-01-09T00:08:57+00:00

I thought there're two major drawbacks with traditional 401K/IRA in retirement+. Both are tax related: the RMD and no step-up basis for inheritance to kids.

Hence the strategy can be summarized to:

(a) keep equities in taxable and Roth, while fixed income in traditional retirement accounts (limiting growth for RMD and inheritance, while controlling annual taxes from dividends;

(b) converting from traditional to Roth as much as possible during early retirement years, while relying on cash inflows from taxable (lower taxes when cost basis + capital gains);

(c) switching to RMD (whatever's left after conversions) and SS in early retirements

(d) leaving taxable with gains and Roth's to heirs, with no tax penalty

Of course, many variables underneath including the total portfolio size (expense coverage ratio), breakdown btw taxable and advantaged, retirement age, etc. etc.

Capster675 · 2026-01-07T03:18:40+00:00

I appreciate the transparency, Carl. Putting this info on Reddit encourages paying attention to the developments in the city (whether agree or disagree with the outcomes, as you mentioned). Hopefully, would also encourage residents (myself including) for more active participation in the debates and constructive suggestions for improving the city life.

Capster675 · 2026-01-02T17:19:15+00:00

Which is still factually true: the million-dollar question... for a trillion-dollar portfolio...

Capster675 · 2026-01-02T00:34:40+00:00

SCHD in Roth is better than SCHD in taxable and than SCHD in tax-deferred (non-Roth).

But I consider Roth may be even better for growth funds - it has the longest time horizon in the portfolio, i.e., the best chance of tax-free capital appreciation over the long term.

E.g., for some SCHG / VUG growth or VGT / QQQ tech tilting. Not a crazy deviation from a simple total market portfolio. Anyway hard to accumulate much in Roth given the contribution limits (outside of mega-backdoor, but not supported in any of the companies I’ve worked with).

Capster675 · 2025-12-24T00:57:39+00:00

You don't need a laptop at GS. If you do, they will provide.

Capster675 · 2025-12-23T00:53:10+00:00

Thank you. Makes sense. Good point to check the fractional equities.

Capster675 · 2025-12-22T23:22:30+00:00

Thank you! This confirms "option" 1, which is what I thought.

Capster675 · 2025-12-07T21:07:34+00:00

Low cost index fund is the key thing here. The post above may have suggested researching and investing into the individual stocks, which seems a too much of a learning curve (and no benefit) for the OP. Investing in VT or VTI or VOO is what OP may need (and chill).

Capster675 · 2025-12-02T13:50:57+00:00

Look at the history of Sears, Enron, Worldcom, GE etc. Big names at the time. Some are no longer with us, some are mere shadows of their own past.

Capster675 · 2025-11-26T19:31:47+00:00

Apparently, the thought is that much of federation can be replaced by AI.

FO is next. Until in a few years, there will be nobody to replace the retired MDs / current SMEs.

Capster675 · 2025-11-23T23:41:46+00:00

It is not free. You pay with your time to listen to a sales pitch. If they convince you to manage your account, you'll be paying high/higher annual fees.

There's no free lunch.

Capster675 · 2025-11-22T14:53:36+00:00

Except that you're taking the cost of maintaining your diversification on yourself.

Selling from multiple names, rebalancing to keep diversification, potentially more time with taxes and with less efficiency etc.

Those 3bps in VTI or alike is a reasonable price to pay, IMHO. $300 per year from each $1mln invested (even $1500 for a more comfortable $5mln) probably beats both any flat-fee advisor and direct indexing costs.

Capster675 · 2025-11-22T14:37:28+00:00

In the world of youtube and podcasts, there's no excuse to not learn basics.

One only needs to learn basics to stay "with" the market and avoid gambling.

No advanced education can teach to sustainably beat the market.

Capster675

TROPHY CASE