Move 401(k) funds to lower cost funds?

401k optimizer
financial independence
index funds
mutual funds
Posted on . 1 min read

Move 401k funds into lower-cost funds like FXAIX, VOO, VTI, etc. 🥷

⛔ Most of us roll with the default 401k fund options provided by the 401k providers. And these providers typically put most of the money into “target date” funds, like Fidelity Freedom 2040, etc. These types of funds are a bit too opaque, and their expense ratios are way too high. Let’s dig in.

🕵️‍♀️ Fidelity S&P 500 (FXAIX) index fund has a really low expense ratio of 0.015% (you pay $0.15 for every $1,000 invested in this fund). 💸 Fidelity Freedom 2040 fund has an expense ratio of 0.75% ($7.50 per $1,000 invested, which is 50 times the FXAIX).

💰Moreover, the returns for the FXAIX fund are much better than the Freedom funds over a long time horizon (10+ years).

🎯 Some other low or zero fees funds are: FZROX: The Fidelity ZERO Total Market Index Fund FNILX: Fidelity ZERO Large Cap Index Fund QQQM: Invesco NASDAQ 100 ETF SCHA: Schwab U.S. Small-Cap ETF VOO: Vanguard S&P 500 Fund VTI: Vanguard Total Market Fund VUG: Vanguard Growth ETF

♥️ If your 401k administrator offers a limited choice of funds, we will gladly help you pick the best from the ones available to you. Feel free to reach us at hello@xillion[.]co or sign up for Xillion and ask one of our mentors.

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