What's in your 401K?

Asymmetric's picture
Asymmetric - Certified Professional
Rank: Orangutan | banana points 332

I don't plan on touching the funds I stash away in my retirement account for a long time, so I just put everything into a 2055 target date strategy, which comes out to roughly 1/3 each in large cap, small cap, and emerging markets funds.

I was wondering if you all had incorporated your views of market valuations or the general economy when deciding how to allocate your contributions.

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Comments (6)

Jan 24, 2018

I don't recommend using target date funds - they're a wide blend across different investment strategies and don't adjust based on current market trends.

I recommend adjusting the specific funds you're investing in based on the current market landscape. For example, I am currently investing in:

Vanguard Institutional Index Fund (lots of blue-chip and F500s
Emerging Market Fund
A Socially Responsible Fund

AUTHORED BY: Certified Asset Management Professional - 2nd Year Analyst - Learn more.
Jan 25, 2018

Thanks for the feedback. I took a closer look at what went into target dates and saw the larger fees attached to some of the choices; reallocated towards a vanguard global stock market index.

AUTHORED BY: Certified Private Equity Professional - 1st Year Associate - Learn more.
Best Response
Jan 25, 2018

Target dates might even under perform a mutual fund.

Typical Market and

S&P : 11%
Mutual fund 7-8% before .5-1% fee
Target date 5-8% before .5-1.8% fee

What I works for - (may not work for you) and is available in my 401k plan
Index funds (S&P), Vanguard, Blackrock, TRowe, Fido, JPM, American Century

Mutual funds: US large cap for now,

Growth, Equity, Dividend funds.
Look at the prospects, top ten holdings, total holdings, % of top ten holdings, Dividend yield, expense ratio, turnover ratio.

I want to buy brand name companies that might be expensive to buy individually.

AUTHORED BY: Certified Private Equity Professional - 2nd Year Associate - Learn more.
    • 2
Jan 31, 2018

Thanks! New allocations going to low load vanguard funds now. Global, emerging markets and small cap

AUTHORED BY: Certified Private Equity Professional - 1st Year Associate - Learn more.
Jan 31, 2018

even mix of:

-international index
-dividend stock index
-sp500 index
-US midcap index
-US small cap index

AUTHORED BY: Certified Hedge Fund Professional - Quant - Learn more.
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Jan 31, 2018

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