22 years old. help me decide on 401k funds
03-14-2011, 11:16 AM
#1
22 years old. help me decide on 401k funds
so im trying to allocate my investments and they give me the option of choosing how what percentage goes where. here are my options.
im not afraid to be aggressive as im fairly young and i would like to see this thing grow a bit.
im currently 60% into this fund
TRIM 2050Roll Up
03/11/2011
American Beacon Sm Cap Value (Inst)
$ 20.79
03/11/2011
EuroPacific Growth Fund Class R-5
$ 41.66
03/11/2011
Columbia Acorn Fund (Class Z)
$ 30.56
03/11/2011
Dodge & Cox Stock Fund
$ 112.86
03/11/2011
Morgan Stanley Small Co Growth I
$ 14.39
03/11/2011
Davis New York Venture Fund (Y)
$ 35.33
03/11/2011
PIMCO Total Return Fund (Inst)
$14.6895 03/11/2011
Vanguard Institutional Index Fund
$ 119.76
03/11/2011
The Growth Fund Of America (R-5)
$ 31.28
03/11/2011
GE Instl International Equity Inv
$ 11.64
03/11/2011
20% into The Growth Fund Of America (R-5) # $72.10 20.10 % 20 %
20% into EuroPacific Growth Fund Class R-5 # $70.78 19.73 % 20 %
My other options are as follows
Davis New York Venture Fund (Y)
Dodge & Cox Stock Fund #
Vanguard Institutional Index Fund #
American Beacon Sm Cap Value (Inst) $
Columbia Acorn Fund (Class Z)
Morgan Stanley Small Co Growth I ‡
GE Instl International Equity Inv
PIMCO Total Return Fund (Inst)
Blackrock Global Allocation (I) ‡
Wells Fargo Stable Value Fund CL E (20)
any suggestions as to where to allocate my funds??
im not afraid to be aggressive as im fairly young and i would like to see this thing grow a bit.
im currently 60% into this fund
TRIM 2050Roll Up
03/11/2011
American Beacon Sm Cap Value (Inst)
$ 20.79
03/11/2011
EuroPacific Growth Fund Class R-5
$ 41.66
03/11/2011
Columbia Acorn Fund (Class Z)
$ 30.56
03/11/2011
Dodge & Cox Stock Fund
$ 112.86
03/11/2011
Morgan Stanley Small Co Growth I
$ 14.39
03/11/2011
Davis New York Venture Fund (Y)
$ 35.33
03/11/2011
PIMCO Total Return Fund (Inst)
$14.6895 03/11/2011
Vanguard Institutional Index Fund
$ 119.76
03/11/2011
The Growth Fund Of America (R-5)
$ 31.28
03/11/2011
GE Instl International Equity Inv
$ 11.64
03/11/2011
20% into The Growth Fund Of America (R-5) # $72.10 20.10 % 20 %
20% into EuroPacific Growth Fund Class R-5 # $70.78 19.73 % 20 %
My other options are as follows
Davis New York Venture Fund (Y)
Dodge & Cox Stock Fund #
Vanguard Institutional Index Fund #
American Beacon Sm Cap Value (Inst) $
Columbia Acorn Fund (Class Z)
Morgan Stanley Small Co Growth I ‡
GE Instl International Equity Inv
PIMCO Total Return Fund (Inst)
Blackrock Global Allocation (I) ‡
Wells Fargo Stable Value Fund CL E (20)
any suggestions as to where to allocate my funds??
03-14-2011, 11:30 PM
#3
Hi,
Unfortunately, you don't have the best 401k choices, but we'll have to do with what you have. Number one thing I would recommend, get a finance book (I posted about this in an earlier thread) such as 'Bogleheads' Guide to Investing', you can search for it. Also, I would highly recommend visiting bogleheads.org. Post your question there and you will get far better responses than anywhere online - trust me. Second, you need to learn about asset allocation and risk tolerance. I won't get into these because you really do need to do some reading.
Meanwhile, here's the portfolio I would use:
10% PIMCO Total Return
40% Vanguard Institutional Index
10% American Beacon Sm Cap Value Inst
40% GE Instl International Equity Inv
This gives you 10% fixed income, 55% domestic (of equities) with a slight small cap value tilt, and 45% (of equities) international.
The only really good fund you have is Vanguard Institutional Index and to some extent PIMCO Total, thought I'd skip it if you have a good bond index.
Do you have an employer match in your 401k? If so, I would recommend you contribute up to the match, then max out a Roth IRA, then go back to 401k, and then, once 401k is maxed, taxable investing. A Roth IRA will provide you with tax diversification, as well as give you excellent fund choices.
Also, the suggestions from the poster above are typical performance chasing and show no knowledge of proper asset allocation. A portfolio composed entirely of a Europe-heavy actively managed fund and an active large value? Let me guess, those two have the most Morningstar stars?
Unfortunately, you don't have the best 401k choices, but we'll have to do with what you have. Number one thing I would recommend, get a finance book (I posted about this in an earlier thread) such as 'Bogleheads' Guide to Investing', you can search for it. Also, I would highly recommend visiting bogleheads.org. Post your question there and you will get far better responses than anywhere online - trust me. Second, you need to learn about asset allocation and risk tolerance. I won't get into these because you really do need to do some reading.
Meanwhile, here's the portfolio I would use:
10% PIMCO Total Return
40% Vanguard Institutional Index
10% American Beacon Sm Cap Value Inst
40% GE Instl International Equity Inv
This gives you 10% fixed income, 55% domestic (of equities) with a slight small cap value tilt, and 45% (of equities) international.
The only really good fund you have is Vanguard Institutional Index and to some extent PIMCO Total, thought I'd skip it if you have a good bond index.
Do you have an employer match in your 401k? If so, I would recommend you contribute up to the match, then max out a Roth IRA, then go back to 401k, and then, once 401k is maxed, taxable investing. A Roth IRA will provide you with tax diversification, as well as give you excellent fund choices.
Also, the suggestions from the poster above are typical performance chasing and show no knowledge of proper asset allocation. A portfolio composed entirely of a Europe-heavy actively managed fund and an active large value? Let me guess, those two have the most Morningstar stars?
Last edited by dmikon; 03-14-2011 at 11:32 PM.
03-15-2011, 07:54 AM
#5
Team Owner
IMO, with recent news, raise cash. Since we are talking about 401k, look into bonds/treasuries.
03-17-2011, 10:40 PM
#6
Hi,
Unfortunately, you don't have the best 401k choices, but we'll have to do with what you have. Number one thing I would recommend, get a finance book (I posted about this in an earlier thread) such as 'Bogleheads' Guide to Investing', you can search for it. Also, I would highly recommend visiting bogleheads.org. Post your question there and you will get far better responses than anywhere online - trust me. Second, you need to learn about asset allocation and risk tolerance. I won't get into these because you really do need to do some reading.
Meanwhile, here's the portfolio I would use:
10% PIMCO Total Return
40% Vanguard Institutional Index
10% American Beacon Sm Cap Value Inst
40% GE Instl International Equity Inv
This gives you 10% fixed income, 55% domestic (of equities) with a slight small cap value tilt, and 45% (of equities) international.
The only really good fund you have is Vanguard Institutional Index and to some extent PIMCO Total, thought I'd skip it if you have a good bond index.
Do you have an employer match in your 401k? If so, I would recommend you contribute up to the match, then max out a Roth IRA, then go back to 401k, and then, once 401k is maxed, taxable investing. A Roth IRA will provide you with tax diversification, as well as give you excellent fund choices.
Also, the suggestions from the poster above are typical performance chasing and show no knowledge of proper asset allocation. A portfolio composed entirely of a Europe-heavy actively managed fund and an active large value? Let me guess, those two have the most Morningstar stars?
Unfortunately, you don't have the best 401k choices, but we'll have to do with what you have. Number one thing I would recommend, get a finance book (I posted about this in an earlier thread) such as 'Bogleheads' Guide to Investing', you can search for it. Also, I would highly recommend visiting bogleheads.org. Post your question there and you will get far better responses than anywhere online - trust me. Second, you need to learn about asset allocation and risk tolerance. I won't get into these because you really do need to do some reading.
Meanwhile, here's the portfolio I would use:
10% PIMCO Total Return
40% Vanguard Institutional Index
10% American Beacon Sm Cap Value Inst
40% GE Instl International Equity Inv
This gives you 10% fixed income, 55% domestic (of equities) with a slight small cap value tilt, and 45% (of equities) international.
The only really good fund you have is Vanguard Institutional Index and to some extent PIMCO Total, thought I'd skip it if you have a good bond index.
Do you have an employer match in your 401k? If so, I would recommend you contribute up to the match, then max out a Roth IRA, then go back to 401k, and then, once 401k is maxed, taxable investing. A Roth IRA will provide you with tax diversification, as well as give you excellent fund choices.
Also, the suggestions from the poster above are typical performance chasing and show no knowledge of proper asset allocation. A portfolio composed entirely of a Europe-heavy actively managed fund and an active large value? Let me guess, those two have the most Morningstar stars?
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03-19-2011, 01:30 AM
#8
My FA has us in a bunch of AFs for both Roths and my IRA and 401K. They've done me well.
04-16-2011, 05:44 AM
#10
he's young invest agressively
04-16-2011, 07:50 PM
#11
04-16-2011, 11:43 PM
#12
market goes up, market goes down but generally speaking it trends upwards
04-17-2011, 02:18 PM
#13
04-17-2011, 06:31 PM
#14
that's why you set up your IRA/401K and only make periodic adjustments to it.....in 40 years you will have a crapload of cash if you ride it out......
04-17-2011, 08:21 PM
#15
In theory yes, in reality, many people see a sharp drop and sell because they lost too much money. I am not saying they should sell, I'm saying they do. If you're one of these people, you need to have a more conservative portfolio, especially as you get closer to retirement.
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