daverx:

Also, why not just growth fund?  It is diversified and owns a decent amount of international.  I have never really believed in international investing. 

If you don't believe in International investing, then AGTHX is a good choice. You can always put future contributions into an international fund later if you change your mind.

I think there are a lot of great companies in Europe, Japan and Canada and I want to invest in them.  I think there are likely to be some great companies in emerging markets like Brazil in the future.  I am not so keen on Russia and China, though.  Others are.

daverx:

Warren Buffett advised people to put all their money in just the 500 index. 

Did Warren Buffet put all of his money in just the 500 index?

daverx:

Cramer, in his new book advises you put it in an index fund or the lowest ER fund in your plan, which for me would be Growth.  I flip flop back and forth on all this, I would really like to make a decision and stick to it.  Thanks for all your help.

There is a wealth of info on the Vanguard forum about index funds and sometimes they even let those who have other ideas speak without attacking them.  Other times, they don't.  But still a good place to read up.

I think AGTHX is considered a good domestic large cap fund and if it is the lowest ER fund in your plan and you don't believe in international investing or bonds and don't care about mid-cap exposure, it is a good choice for you.

daverx:

I have two problems with the thornberg fund.  1.  its the R3 class, so high ER of 1.61.  2.  The top holdings are similar to growth fund, ie Roche, Nokia, and one or two others.  Thornburg is much more concentrated than growth which I like and holds a good cash position.  Given the high er and non A class share, is it still worth investing in?

None of us have a crystal ball, but I think at your age, you are better off having a larger international exposure than AGTHX alone can give you.  I won't change my position on that.  Taylor likes even more of an international exposure for someone your age than I do.

The higher ER is an issue, no doubt, but take a look at the 5 year performance data - 15% annualized returns for AGTHX vs. 25% for TGVAX.  The larger growth of TGVAX would have more than made up for the higher ER if you had invested 5 years ago.  Of course, past performance is no guarantee of future performance and we may be headed into a sustained global recession and if so, neither of these funds will yield that level of growth and could very well lose the gains they have made over the last 5 years.

daverx:

Also, why not just growth fund? 

The following link should help with that question

daverx:

I have no other investments, as I have no money to invest anywhere else.  I am only investing in 401k due to employer match.  

Make sure you max out the employer matching.  If you don't that is like throwing money away.

I am getting the full match.  I contribute 6% and they match 3% (50%).