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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: cm1988 on November 18, 2018, 12:25:24 PM

Title: Help with 401K Asset Allocation
Post by: cm1988 on November 18, 2018, 12:25:24 PM
Hi Fellow Mustachians!

New to the forum and to pursuing FIRE, and would love help with my 401K allocation. 

I subscribe to the JLCollins philosophy of Index investing, but since my 401K account doesn't have access to the Vanguard funds that are typically recommended (VTSAX, VBTLX, VTIAX), I would like to replicate that philosophy but with the funds I have available in my 401K.

I don't have access to a total stock market fund, but do have access to a 500 index fund, and from what I've read I can replicate total stock market fund with 500 index + mid cap + small cap -- Right?

Here's what I'm thinking....

80% replicating total stock index fund...~65% Large cap (an S&P 500 fund), 5% Mid cap, ~10% Small cap.
10% replicating total bond index fund... not sure how to do this - would I need some long term + some short term?
10% replicating total international index fund... also guessing a bit on this.

Based on the funds below, and my target asset allocation, do you think this is the right split?

65% Fidelity 500 Index Institutional Prem
5% Fidelity Mid-Cap Stock
10% Vanguard Strategic Equity Inv???
10% Metropolitan West Total Return Bond I???
10% Fidelity International Index InstlPrm???

I'm currently enrolled in my 401ks "Portfolio Express" which automatically rebalances and defines asset allocation for me.  Right now they have me weighted as follows.  These represent all funds available.

Short Bonds/Stable/MMkt
Lord Abbett Short Duration Income R3   1%   
Reliance/MetLife Stable 25053 Class 0   2%   
Interm./Long-Term Bonds
Metropolitan West Total Return Bond I   6%   
Aggressive Bonds
PGIM High Yield Z   1%   
Large-Cap Stocks
DFA US Large Cap Value I   22%   
Fidelity 500 Index Institutional Prem   10%   
Transamerica Large Core R4   11%   
American Funds AMCAP R6   22%   
Small/Mid-Cap Stocks
Fidelity Mid-Cap Stock   3%   
DFA Real Estate Securities I   2%   
Vanguard Selected Value Inv   3%   
Vanguard Strategic Equity Inv   1%   
DFA US Targeted Value I   2%   
PIMCO StocksPLUS Small Institutional   1%   
International Stocks
Fidelity International Index InstlPrm   3%   
Oakmark Global Investor   3%   
Oppenheimer International Growth Y   4%   
American Funds New World R6   3%   
American Funds American Balanced R6   0%   
JPMorgan SmartRetirement Income R2   0%   
JPMorgan SmartRetirement 2020 R2   0%   
JPMorgan SmartRetirement 2025 R2   0%   
JPMorgan SmartRetirement 2030 R2   0%   
JPMorgan SmartRetirement 2035 R2   0%   
JPMorgan SmartRetirement 2040 R2   0%   
JPMorgan SmartRetirement 2045 R2   0%   
JPMorgan SmartRetirement 2050 R2   0%   
JPMorgan SmartRetirement 2055 R2   0%   

More background: I am currently 30, hoping to retire somewhere between 40-45 depending on how quickly I can accelerate my income and savings %. 

Thanks for the help!!