401K Portfolio Double Check
I just know the basics of investing, so I am posting in hopes that I can get a second opinion about my 401K portfolio.
- Age - 22
- Income - $60,000
- Marital Status - Single
- Employer matches 1:1, up to 5% of salary No debt, no rent expenses, very little monthly expenses
- Roth IRA Account - $5500 invested in Vanguard Total Stock Market
I have opted to contribute to my employer's Roth 401K account. Any matches will go into the traditional account. I may allocate some contributions to the traditional account just so I have a little bit more of a tax hedge. As of now, I have 10% of my monthly paycheck set to my 401K. I may increase that amount to 15% since I don't foresee making any large purchases in the near future. I also plan to contribute the $5,500 to my Roth IRA.
Here are my investment choices
Right now I have -
- 64% in the S&P 500 Fund
- 16% in the Small Cap Fund
- 20% in the International Index Fund
Would adding a small percentage to the Value Index Fund be beneficially for a slight value tilt? I'm considering decreasing the S&P 500 by 7% and allocating that 7% to the Value fund.
I plan to add one of the bond funds when I get older. When this time comes, should I choose the Long Term Bond Index or the Intermediate Term Fund? The Intermediate Fund has a much higher expense ratio, but based on my understanding, it has a lower duration.
Does this seem like a reasonable portfolio? Also does 15% to 401K and $5500 to the Roth IRA look good for someone my age, or if you were in my shoes, would you increase contributions?