Cruian t1_jebib8w wrote on March 30, 2023 at 8:23 PM

>On my 401K, I am investing my money on VITAX, FSKAX and SWPPX

Why? FSKAX already fully includes the others.

>specifically Vanguard S&P500 ETF and Totals bonds ETF in 90%, 10% ratio.

Why ignore the US extended market?
Why ignore ex-US?
What made you decide ETFs over mutual funds?

>Should I follow this approach across all my retirement accounts and the brokerage account?

I wouldn't follow it in any account to be honest. Personally, I consider the S&P 500 obsolete for any account where you don't have a short list to pick from (because of bullets 1 & 2).

DharaniA OP t1_jec79wl wrote on March 30, 2023 at 11:11 PM

My 401k fund options are very limited. So I chose the funds I mentioned. I wanted to move to ETFs because of their low expense ratio.

Cruian t1_jecekz9 wrote on March 31, 2023 at 12:04 AM

>I wanted to move to ETFs because of their low expense ratio.

Low ERs is not exclusive to ETFs. In fact, several Fidelity mutual funds beat the ER of any comparable ETF.

Low ERs is usually far more of an issue of index based vs actively managed. Index mutual funds exist, actively managed ETFs exist.

>My 401k fund options are very limited.

That's usually the case.

>So I chose the funds I mentioned.

You only need FSKAX of those 3.

You should also look into adding at least an ex-US fund somewhere.

DharaniA OP t1_jeclk02 wrote on March 31, 2023 at 12:56 AM

Thank you. Will there be any difference between how ETFs are taxed vs Mutual funds are taxed?

Cruian t1_jecvpp9 wrote on March 31, 2023 at 2:14 AM

Within tax advantaged accounts, no.

DharaniA OP t1_jecwxui wrote on March 31, 2023 at 2:23 AM

Thanks. I see your point. It makes sense. What is your take on sticking to the same list of index funds (when the expense ratio is zero) across all my retirement accounts?