Help figure out what are the best options within my company 401k

[volaric]

My company provides the following options.  i don't know how to narrow down which funds would get me well diversified, while keeping the expence ratio down.  Any help coming up with a good portfolio given these options would be greatly appreciated.

Thanks!

Commodities Broad Basket
PIMCO Commodity Real Ret Strat Admin            PCRRX                  Exp Ratio: 0.99%
Diversified Emerging Mkts
DFA Emerging Markets I                                    EDFEMX                  Exp Ratio: 0.56%
Domestic Hybrid
Invesco Van Kampen Equity and Income Fund     ACEIX                  Exp Ratio: 0.79%
Foreign Large Value
Dodge & Cox International Stock                          DODFX                  Exp Ratio: 0.64%
Foreign Stock
Europacific Growth Fund                                      R5RERFX                  Exp Ratio: 0.53%
Inflation Protected Bond
American Century Inflation Adjusted Bond Investor Class   ACITX                  Exp Ratio: 0.47%
Intermediate-term Bond
Dodge & Cox Income Fund                                   DODIX                 Exp Ratio: 0.44%
Large Blend
Columbia Large Cap Index Z                                  NINDX                 Exp Ratio: 0.20%
Large Growth
T. Rowe Price New American Growth                     PRWAX                 Exp Ratio: 0.79%
Large Value
T. Rowe Price Equity Income                                PRFDX                 Exp Ratio: 0.66%
Mid-Cap Blend
Vanguard Mid Cap Index Admiral Shares                VIMAX                 Exp Ratio: 0.09%
Mid-Cap Growth
Vanguard Mid-Cap Growth Index Inv                       VMGIX                 Exp Ratio: 0.23%
Mid-Cap Value
Vanguard Selected Value                                       VASVX                 Exp Ratio: 0.41%
Real Estate
Nuveen Real Estate Securities Fund                       FREAX                 Exp Ratio: 1.3%
Small Blend
DFA US Small Cap I                                              DFSTX                 Exp Ratio: 0.37%
Small Growth
Vanguard Small Cap Growth Index Admiral              VSGAX                 Exp Ratio: 0.09%
Small Value
Vanguard Small Cap Value Index                            VISVX                 Exp Ratio: 0.23%
Stable Value
UTC Stable Value Trust                                           UTCSV                 Exp Ratio: 0.65%
World Stock
American Funds New Prespective R5                       RNPFX                 Exp Ratio: 0.49%
Capital World Growth and Income R5 Shares             RWIFX                 Exp Ratio: 0.49%

[Ryan_1982]

Hi,

I think something that may help would be to know your age and your risk tolerance.

-Ryan

[MDM]

There is no way to know what will be best in the future.  Here is one suggestion:
1/3     Vanguard Mid Cap Index Admiral Shares       VIMAX   0.09%
1/3     Vanguard Small Cap Growth Index Admiral   VSGAX   0.09%
1/3     Columbia Large Cap Index Z                         NINDX   0.20%

Others may have different suggestions, and they may well prove better.  The equal split shown above has the benefit of simplicity and provides good US-based diversification.  It has the downside of no international exposure.  These three are your lowest cost funds.

[volaric]

Hi,

I think something that may help would be to know your age and your risk tolerance.

-Ryan

24 Years old, Male  High risk tolerance.

[ShoulderThingThatGoesUp]

I second MDM's suggestion. Maybe ask for some lower-cost funds, some of those are painful!

[Reynolds531]

I'd look at as though you have 25 basis points average to spend on management. Anything more than that is too much for a group plan. I'd agree you should ask when the last time the plan reviewed its fees with vendors. Also do they have anyone you can talk to for advice?

I help run a DC plan in Canada but I don't deal with most of those managers so know very little about them.

[forummm]

There is no way to know what will be best in the future.  Here is one suggestion:
1/3     Vanguard Mid Cap Index Admiral Shares       VIMAX   0.09%
1/3     Vanguard Small Cap Growth Index Admiral   VSGAX   0.09%
1/3     Columbia Large Cap Index Z                         NINDX   0.20%

Others may have different suggestions, and they may well prove better.  The equal split shown above has the benefit of simplicity and provides good US-based diversification.  It has the downside of no international exposure.  These three are your lowest cost funds.

This is a good suggestion. Another is just 100% in VIMAX (what I would do). I think the key is to just put as much into your 401k as you can while you're at this job, paying the lowest fees possible, and then roll it over into an IRA as soon as you leave. VIMAX is pretty highly correlated with the total stock market anyway.

[SunshineAZ]

I just want to point out that the Vanguard Admiral shares normally require a $10k minimum.  At least they are in my Vanguard account, but it is not part of a company 401k. 

[forummm]

I just want to point out that the Vanguard Admiral shares normally require a $10k minimum.  At least they are in my Vanguard account, but it is not part of a company 401k. 

I think 401ks have different limits because there's a big aggregation of everyone in the company investing in those funds. If the amount invested in the company gets large enough they can get institutional class shares, which can have a slightly lower ER than admiral.

[SunshineAZ]

I just want to point out that the Vanguard Admiral shares normally require a $10k minimum.  At least they are in my Vanguard account, but it is not part of a company 401k. 

I think 401ks have different limits because there's a big aggregation of everyone in the company investing in those funds. If the amount invested in the company gets large enough they can get institutional class shares, which can have a slightly lower ER than admiral.

I suspected that it might work differently in a company 401k, but I thought I should mention it just it case it was an issue.  Thanks for the clarification.  :)