Author Topic: 401k Investment choices... what should I do?  (Read 6043 times)

m5mulli

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401k Investment choices... what should I do?
« on: March 14, 2014, 10:54:57 AM »
I am good with risk. I need lots of growth.


EQUITY/STOCK   
ALLIANZGI NFJ INTRNL VAL INSTL   ANJIX
COLUMBIA ACORN INTERN CL Z   ACINX
INVESCO GLOBAL REAL ESTATE R5   IGREX
INVESCO GROWTH & INCOME CL R5   ACGQX
MAINSTAY LARGE CAP GROWTH FUND   MLAIX
OPPENHEIMER DEVELOPING MARKETS   ODVYX
PERKINS SMALL CAP VALUE CL I   JSCOX
SENTINEL SMALL COMPANY CL I   SIGWX
VANGUARD INSTITUTIONAL INDEX   VINIX
VANGUARD MID-CAP INDEX FD   VMISX
VANGUARD SMALL CAP INDEX FD   VSISX
VANGUARD TOTAL INTL STK INDEX   VTSGX

BOND/FIXED INCOME   
PIMCO REAL RETURN FD CL INST   PRRIX
PIMCO TOTAL RETURN PORT. INSTL   PTTRX
VANGUARD TOTAL BOND MKT INDX   VBTSX

STABLE VALUE FUND   
STABLE VALUE FUND   SVFUND

nicknageli

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Re: 401k Investment choices... what should I do?
« Reply #1 on: March 14, 2014, 12:42:27 PM »
Most people recommend reading http://jlcollinsnh.com/stock-series/

Keep in mind the fees that those funds charge.

m5mulli

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Re: 401k Investment choices... what should I do?
« Reply #2 on: March 14, 2014, 12:50:19 PM »
I have read that one. I found it very helpful. I was just curious what others thought I should do.

Masochisto

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Re: 401k Investment choices... what should I do?
« Reply #3 on: March 14, 2014, 01:15:06 PM »
VANGUARD TOTAL INTL STK INDEX   VTSGX

bolded for emphasis.


This is assuming you are still solidly in the accumulation phase.

Badass by 41

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Re: 401k Investment choices... what should I do?
« Reply #4 on: March 14, 2014, 01:16:46 PM »
VANGUARD TOTAL INTL STK INDEX   VTSGX

International?

Why not VINIX which is and S&P500 analog?

m5mulli

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Re: 401k Investment choices... what should I do?
« Reply #5 on: March 14, 2014, 01:26:23 PM »
Yeah the performance does not look that good for the VTSGX

Badass by 41

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Re: 401k Investment choices... what should I do?
« Reply #6 on: March 14, 2014, 01:41:57 PM »
Based on the common strategies I've read, if you want to go super aggressive in equities at 100%, of the choices you have VINIX seems the most reasonable, especially at an expense of .04%.

You could potentially do an 80/20 mix with 80% VINIX and 20% VBTSX (though that ticker doesn't exist according to vanguard.  Did you mean VBTLX?).

foobar

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Re: 401k Investment choices... what should I do?
« Reply #7 on: March 14, 2014, 02:00:48 PM »
Stocks:
VANGUARD INSTITUTIONAL INDEX   VINIX  - 40%
VANGUARD SMALL CAP INDEX FD   VSISX  -20%
VANGUARD TOTAL INTL STK INDEX   VTSGX -40%

Bonds
VANGUARD TOTAL BOND MKT INDX   VBTSX 100%

You would have to post more info about your stable fund to see if it is worth investing in.

The stock to bond ratio is what your comfortable with. I am 80% equities but some people sleep better with 50%. I was 100% when I was in my 20s. Go with whatever you want

Yes VTSGX doesn't have a good 10 year performance. BUT the last 10  years have not been good for international stocks. Who knows what the next 10 will be. Dropping international to 20% would be my lower bound.

You could drop the small cap index fund for simplicity (put the money in the US fund) but I personally like having some exposure.

Of the funds that I recognize most are pretty decent. I had the perkins small cap in an old 401(k). It is more expensive than vanguard but it had more of a value biase. There is some theory that should outperform over the long run



I am good with risk. I need lots of growth.


EQUITY/STOCK   
ALLIANZGI NFJ INTRNL VAL INSTL   ANJIX
COLUMBIA ACORN INTERN CL Z   ACINX
INVESCO GLOBAL REAL ESTATE R5   IGREX
INVESCO GROWTH & INCOME CL R5   ACGQX
MAINSTAY LARGE CAP GROWTH FUND   MLAIX
OPPENHEIMER DEVELOPING MARKETS   ODVYX
PERKINS SMALL CAP VALUE CL I   JSCOX
SENTINEL SMALL COMPANY CL I   SIGWX
VANGUARD INSTITUTIONAL INDEX   VINIX
VANGUARD MID-CAP INDEX FD   VMISX
VANGUARD SMALL CAP INDEX FD   VSISX
VANGUARD TOTAL INTL STK INDEX   VTSGX

BOND/FIXED INCOME   
PIMCO REAL RETURN FD CL INST   PRRIX
PIMCO TOTAL RETURN PORT. INSTL   PTTRX
VANGUARD TOTAL BOND MKT INDX   VBTSX

STABLE VALUE FUND   
STABLE VALUE FUND   SVFUND

MountainMan

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Re: 401k Investment choices... what should I do?
« Reply #8 on: March 14, 2014, 05:34:52 PM »
Have you considered something like the 3-fund Portfolio?

http://www.bogleheads.org/blog/the-three-fund-portfolio/

wtjbatman

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Re: 401k Investment choices... what should I do?
« Reply #9 on: March 14, 2014, 06:54:44 PM »
I am good with risk. I need lots of growth.


It helps to have a better idea of what you want your Asset Allocation (AA) to be. If you're ok with risk (will ride out the lows), you want more in equities. So something like 80/20 or 90/10 (equities/bonds) would work as an aggressive portfolio. Rebalance quarterly or keep balance as you invest new capital.

80/20 AA
VANGUARD INSTITUTIONAL INDEX   VINIX - 50%
VANGUARD MID-CAP INDEX FD   VMISX - 15%
VANGUARD SMALL CAP INDEX FD   VSISX - 15%
VANGUARD TOTAL BOND MKT INDX   VBTSX - 20%

90/10 AA
VANGUARD INSTITUTIONAL INDEX   VINIX - 60%
VANGUARD MID-CAP INDEX FD   VMISX - 15%
VANGUARD SMALL CAP INDEX FD   VSISX - 15%
VANGUARD TOTAL BOND MKT INDX   VBTSX - 10%

Are two example portfolios that will have low fees, are diversified, and are likely to give you average or above average returns in the future. Every index investor's dream, right?
« Last Edit: March 14, 2014, 07:25:01 PM by wtjbatman »

trugrit03

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Re: 401k Investment choices... what should I do?
« Reply #10 on: March 14, 2014, 09:36:26 PM »
I'm curious as to why people are suggesting that he hold ANY bond funds if he is very aggressive. I agree with some of the other posts that indicate that you would probably need more information before you suggest that he consider any particular fund or strategy, but based on the very short post, why wouldn't an allocation of 100% stock be appropriate? I would be more inclined to consider a portfolio with 80%-100% domestic stock and 0-20% international stock if we're talking about an investor with very high risk tolerance and who will be accumulating over the next 5+ years.

wtjbatman

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Re: 401k Investment choices... what should I do?
« Reply #11 on: March 14, 2014, 09:47:56 PM »
I'm curious as to why people are suggesting that he hold ANY bond funds if he is very aggressive. I agree with some of the other posts that indicate that you would probably need more information before you suggest that he consider any particular fund or strategy, but based on the very short post, why wouldn't an allocation of 100% stock be appropriate? I would be more inclined to consider a portfolio with 80%-100% domestic stock and 0-20% international stock if we're talking about an investor with very high risk tolerance and who will be accumulating over the next 5+ years.

Comparable performance with possibly much less risk (especially look at 70/30 vs 100/0)


MountainMan

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Re: 401k Investment choices... what should I do?
« Reply #12 on: March 15, 2014, 12:30:53 AM »
There is some indication that there could be better returns by holding some bonds, international stock, and domestic stock funds.  They do not go up and down simultaneously, typically.  So to rebalance the funds back to its policy allocation, you're essentially selling high and buying low ... whatever the prices of the funds happen to be at the time.  This could lead to better overall returns than just investing in domestic/international stock funds alone.  It seems counterintuitive, but more risk doesn't necessarily mean better returns.
« Last Edit: March 15, 2014, 12:32:39 AM by MountainMan »