Here you go Rainman, Julie has you covered.


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This post is not intended to induce political discussion, just looking for financial impact insights only.

I've been notified that my 401K target fund is being transitioned from Vanguard to a similar BlackRock target fund.

The funds seem to be aligned fairly well with slight variance in return over 10 years however the expense ratio is 2.5x higher resulting in a lower ending value.

I'm obviously going to do more of my own research but wondering if anyone here can think of any other valid financial downsides of my 401K target fund moving from Vanguard to BR?

There's speculation making the rounds here that BR might be at risk with regards to commercial real estate markets
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Unless they’re committing fraud you shouldn’t lose your equities.

If they eat a mountain of shit in commercial real estate, they could jack their fees, which you’re aware of the impact. But I don’t think your 401k dollars should be at risk. Those are your equities, they’re just brokering them.

The fee thing is not great Bob. I THINK, you should check with a professional first, but I THINK a you can roll your 401K money into a similarly taxed IRA (Roth to Roth or Traditional to Traditional) if you want to recapture that.

Vanguard self directed IRAs are pretty easy. But you need to do it right so they don’t send you a 1099 with a million penalties.

Especially on your initial principal, because they’re going to roll it from 401K to 401K. I don’t know how old you are but probably not too old for it to not matter.
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Good info and pretty much how I feel about the actual equities within the fund.

There's A LOT of frenzied panic here as this coincides with a return to office model which is practically a copy pasta from BR's CEO interview rounds.

I'll probably consult with a professional as we have some other things in the mix that I could use advice on.
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Panic is the flavor of the day it seems. Talk to your guy about the fees and rolling it. I’d try to shoot for once a year roll it out into something that doesn’t cost you as much.

If you’re not over the income limit you could reduce your 401K contributions (presuming you’re contributing more than your match %) and contribute to a traditional IRA. If you’re under the catch up age limit I’m pretty sure it is 6K for you, 6K for the wife if that is an easier path.
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Black rock is huge. I'm not sure why the fees would be significantly higher. They have more AUM than Vanguard. That article seems to be mixing up Blackrock and Blackstone. Blackrock spun out of Blackstone decades ago as a financial services firm. Blackstone is more the PE/Real estate group

Your 401k shouldn't be at risk even if Vanguard or Blackrock went under.
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Expense ratio 2.5x higher than Vanguard isn’t always significant. My Vanguard is .03% and something like .1% isn’t really huge. What numbers are you seeing for expense ratios?
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A lot of times the management company for a 401K takes some fees so it is possible.
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VTTHX .08
LIJIX .19
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NVDA is absolutely killing it.
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It's an odd stock market day. Most of the market is down considerably, but a few of the chip companies are destroying worlds. NVDA is going supernova, but AMD and TSM are also up huge.

I have a lot of all three of them. :-) NVDA has rocketed up to where it's only a hair down from being my largest single holding now.

Of course, the rest of the market has been down this week so I'm still pretty much just breaking even over the last week. But that's better than losing money.
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I've been long NVDA since 2017. My four largest positions, NVDA, GOOGL, SNPS, and TSM, are all up big today.

As long as demand for AI stays high, I'm hopeful they will continue to grow.
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I've been in a bit of a conundrum recently. My biggest holdings are GOOG, NVDA, and MSFT. They're done really well for me.

I'm wanting to pivot more conservative, and I feel like I should lock in some of the gains, but man, I hate paying capital gains tax. I don't want to sell and pay taxes, especially when I'll probably put them in more conservative stocks. Mathematically, I should just keep riding them, but a tech crash would be painful if they were to drop 30 or 40 percent.

In full disclosure, I've been buying CDs like crazy recently, at an average rate of about 5.1 percent. If you add all those up, it's about the same amount that I have (combined) in GOOG and NVDA. So I have a conservative counterbalance.

I'm talking myself into not selling as I type this, but I really don't want to ride into a bear market with so much tech. I'd rather avoid big losses these days than make big gains. I'm torn.
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Cathie Wood dumped over 700,000 shares of Nividia right before it took off. You literally can’t have played it worse.

All I can say is :-)

https://finance.yahoo.com/news/cathi...a&guccounter=2
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PLTR is one I've been in and out of for a couple years and is +79 over the last year
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