Author Topic: Help With Asset Allocation  (Read 1085 times)

Euphorbia

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Help With Asset Allocation
« on: November 20, 2018, 09:11:53 AM »
I was wondering if someone could give advice regarding asset allocation in my 401(k). 47 years old; plan on working about 10 more years. Here are my choices:

Equity/Stock   
American Europacific Growth   RERGX
American growth Fund   RGAGX
Artisan Mid Cap Fund Invest CL   ARTMX
Artisan Mid Cap Value   ARTQX
Blackrock Extended FD CL K   BEEMT
Blackrock MSCI ACWI EX CL   BMSIT
DFA US Sustainability Core   DFSIX
Dodge & Cox International   DODFX
Fidelity Real Estate Idx Instl   FSRNX
Hotchkis and Wiley Sml CP VL   HWSIX
MFS InTL New Discovery   MIDAX
MFS Value Fund   MEIAX
Morgan Stanley Emrg Mrts   MMMPX
Morgan Stanley Glbl Real   MRLAX
Vanguard Explorer Fund   VEXRX
Vanguard Instl 500 IDX Trust   VLCSP
   
Bond/Fixed Income   
Dodge & Cox Income   DODIX
John Hancock Global ABS CL   JHAIX
MFS Emerging Markets DBT CL A   MEDAX
State Street Tips Index   ZTIPST
Templeton Global Total CL ADV   TTRZX
Vanguard High Yield Corp Adm   VWEAX
Vanguard Instl Total bnd ID TR   VTBMK
Vanguard Shrt Trm BD Indx Inst   VBITX
   
Money Market   
Blackrock FedFund Instl CL   AZBGP

HeadedWest2029

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Re: Help With Asset Allocation
« Reply #1 on: November 20, 2018, 09:14:34 AM »
Asset allocation help or fund selection help?  Without context, a 10 year time horizon would imply a roughly 70/30 stock/bond mix according to Vanguard's target date fund for 2030.  https://investor.vanguard.com/mutual-funds/profile/portfolio/vthrx

jacoavluha

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Re: Help With Asset Allocation
« Reply #2 on: November 20, 2018, 09:23:40 AM »
Vanguard Instl 500 IDX Trust   VLCSP
Vanguard Instl Total bnd ID TR   VTBMK

allocate between these two at your desired stock:bond ratio

you left out most important part, expense ratios, so I'm kinda guessing. Don't see any obviously decent Intl fund.

MustacheAndaHalf

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Re: Help With Asset Allocation
« Reply #3 on: November 20, 2018, 02:11:32 PM »
Look for low "expense ratios", which both save you money on fees and indicate a passive index fund.  Passive funds don't participate in the market competition where half lose and half win.  And since competing also involves spending money, passive funds actually beat most of the market (the S&P 500 beats ~80% of active funds, for example).

The following is a "global" fund that includes both U.S. and international equities:
Blackrock MSCI ACWI EX CL   BMSIT

So you could pour all of your equity allocation into "one fund", knowing this one fund covers stocks from all over the world (Apple, Toyota, Alibaba, etc).  The expense ratio of 0.11% (per year) is in the low range.

The problem is if you try to split U.S. and international, the other international options don't look ideal.  For example, Dodge & Cox International charges 0.65% in annual fees, which is higher than you'd want.

Euphorbia

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Re: Help With Asset Allocation
« Reply #4 on: November 20, 2018, 06:37:08 PM »
Updated with Expense Ratios.

Equity/Stock      Expense Ratio
American Europacific Growth   RERGX   0.49%
American Growth Fund   RGAGX   0.33%
Artisan Mid Cap Fund Invest CL   ARTMX   1.18%
Artisan Mid Cap Value   ARTQX   1.17%
Blackrock Extended FD CL K   BEEMT   0.06%
Blackrock MSCI ACWI EX CL   BMSIT   0.10%
DFA US Sustainability Core   DFSIX   0.26%
Dodge & Cox International   DODFX   0.63%
Fidelity Real Estate Idx Instl   FSRNX   0.07%
Hotchkis and Wiley Sml CP VL   HWSIX   1.02%
MFS InTL New Discovery   MIDAX   1.31%
MFS Value Fund   MEIAX   0.84%
Morgan Stanley Emrg Mrts   MMMPX   0.98%
Morgan Stanley Glbl Real   MRLAX   1.02%
Vanguard Explorer Fund   VEXRX   0.32%
Vanguard Instl 500 IDX Trust   VLCSP   0.01%
      
Bond/Fixed Income      
Dodge & Cox Income   DODIX   0.43%
John Hancock Global ABS CL   JHAIX   1.33%
MFS Emerging Markets DBT CL A   MEDAX   1.09%
State Street Tips Index   ZTIPST   0.02%
Templeton Global Total CL ADV   TTRZX   0.87%
Vanguard High Yield Corp Adm   VWEAX   0.13%
Vanguard Instl Total bnd ID TR   VTBMK   0.03%
Vanguard Inter Treas Indx Inst   VIIGX   0.05%
Vanguard Short Trm BD Indx Inst   VBITX   0.05%
      
Money Market      
Blackrock FedFund Instl CL   AZBGP   0.19%

MustacheAndaHalf

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Re: Help With Asset Allocation
« Reply #5 on: November 23, 2018, 02:47:21 AM »
Vanguard Target 2030 holds 30% bonds, so I'd go with Vanguard's expertise and use the low expense ratio bond fund.  If you want a really easy portfolio:

33.3% Vanguard Total Bond
33.3% Blackrock MSCI ACWI EX (roughly half US, half international)
33.3% Vanguard Instl 500 IDX Trust

But you could also avoid international and use:
30% Vanguard Total Bond
70% Vanguard Instl 500 IDX Trust

Euphorbia

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Re: Help With Asset Allocation
« Reply #6 on: November 24, 2018, 07:32:48 AM »
Thank you for the advice.  I believe that Blackrock MSCI ACWI EX CL is almost entirely foreign stocks and have adjusted accordingly.

« Last Edit: November 24, 2018, 06:04:52 PM by Euphorbia »