401k Portfolio Recommendation & Advice
Here is my current 401k portfolio:
- BFA LifePath Fund 2060 (45%), Expense Ratio 0.066%
- BlackRock Russell 1000 Growth Index Fund (20%), Expense Ratio 0.021%
- BlackRock Russell 2000 Index Fund (5%), Expense Ratio 0.090%
- BlackRock Russell 1000 Value Index Fund (20%), Expense Ratio 0.021%
- BlackRock MSCI EAFE Index Fund (5%), Expense Ratio 0.110%
- BlackRock MSCI Emerging Market Index Fund (5%), Expense Ratio 0.110%
For context, I'm a 1st year IB analyst at a BB/EB, intending to stay in IB/PE in the long term and planning for a retirement age of 65+. I have no outstanding debt/obligations, no student loans, and my family is in a reasonably well financial condition. My goal is to (aggressively) maximize my expected returns over a 40+ year horizon while keeping expense ratios low.
Any thoughts on my current allocations? I chose to leave out the S&P500 ETF due to its relatively higher expense ratio (0.090%) plus I think I'm reasonably well-allocated in U.S. large caps through Russell 1000 & BFA LifePath. I also wanted to over-allocate a bit towards mid/small caps for (potentially?) higher returns due to the small-cap risk premium. Also, I purposely chose not to go 100% on the BFA LifePath Fund as I want to maximize my %equities in the portfolio for the next 10+ years.
The BFA LifePath Fund is ~35% international, so my international exposure is 45%*35 + 5% + 5% = 25.75%.
Would appreciate any advice or recommendations!
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