From 24/7 Wall St. · Ryne Mauck · · 1m 30s
50 With a 401(k) and Nothing Outside It? These 3 ETFs
Three ETFs help retirees open accounts outside their 401(k) for better control.
In brief
Three ETFs help retirees open accounts outside their 401(k) for better control. Retirees over 50 can open three ETFs to diversify retirement savings beyond their employer's 401(k) plan. Originally reported by 24/7 Wall St..
Why Owning an Account Yourself Matters Now
Opening an account in your own name gives retirees choice, flexibility, and independence from employer-controlled retirement plans.
Check What Your 401(k) Already Owns First
Before buying new ETFs, review your 401(k) holdings to avoid duplication and fill gaps in your portfolio.
VV: Large US Companies You May Already Own
Vanguard Morningstar Large-Cap ETF (VV) tracks US large companies and has performed well over the past decade.
VSS: Foreign Small Caps Most 401(k) Menus Skip
Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) offers foreign small-cap exposure that most 401(k) plans lack.
FBND: An Actively Managed Bond Core
Fidelity Total Bond ETF (FBND) provides bond exposure with a 0.36% expense ratio and up to 20% in lower-quality bonds.
Trade-Offs to Weigh Before You Fund the Account
Each ETF has trade-offs: VV may overlap with existing holdings, VSS is volatile, and FBND loses value when rates rise.
The Right Mix for Your Retirement
Combine VV, VSS, and FBND to create a diversified portfolio with US stocks, foreign small caps, and bonds in an account you control.
Why This Matters for Retirees
Retirees over 50 can add extra contributions to their 401(k) and open new accounts to diversify retirement savings.
The takeaway
Retirees over 50 can open three ETFs to diversify retirement savings beyond their employer's 401(k) plan.
