What's in your 401K?

Asymmetric's picture
Rank: Orangutan | banana points 331

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.

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

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.

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.

26 Broadway
where's your sense of humor?

Jan 31, 2018

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

Jan 31, 2018

even mix of:

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

Jan 31, 2018

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