VFSUX
VANGUARD SHORT-TERM INVESTMENT-GRADE FUND ADMIRAL SHARES
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A little confused by SEC yield on bond fund. Would a CD be slightly better?
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> VFIAX fees seem high, should I switch to bonds to offset? 1. VFIAX has very low “fees”: a 0.04% expense ratio. 2. Switching from stocks to bonds over fees is cutting off your nose to spite your face. I currently hold VFIAX in my Roth 401(k), but I’m noticing what feel like high fees: about $18 per quarter plus \\\\\\\~$13 per month in plan/administrative fees. Those are plan fees, not fund fees. So not tied to VFIAX at all. >I’m considering switching to VFSUX (bond fund) since its yield would more than cover the fees. 1. any fund you use will have the same fees because those fees are charged for simply being in the plan. 2. even if you were right it makes zero sense to switch to bonds over this. > Are there better ways to deal with high 401(k) fees without hurting long-term growth? Just invest the same way. But you can prioritize Roth IRA and HSA if you aren’t already.
I have used them for many years and I’m happy there with low fees and professional service. Plus you have a fund or 401k with them already. I’m mainly in VTSAX, VTIAX and VFSUX and have had success with these since 2004. Plus my uncle is an ex chief economist on Wall Street and it’s his recommendation and he used to tell large corporations where to park their funds and now he does it for friends and family as a hobby.
VTSAX, VTIAX, with a dash of VFSUX. No complaints.
The yield difference is negligible compared to two other aspects: 1. Liquidity. You have access to your money within a couple days staying in VFSUX, the CD will be locked up for 1.5 years. 2. Loss of principle. You can lose money with VFSUX, notice how the price went down from 10.5 to 10. CDs won't do that. When it comes to yield I always calculate/estimate it myself because there are so many different ways to auto generate a number, and it may not be accurate or what I'm looking for.
I saw rates were historically low and I kept all of my bond money in short term funds (mostly VFSUX) I only lost about 5%
VFSUX = Vanguard fucking suxs