Author Topic: 401k - rebalance?  (Read 3467 times)

lotus

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401k - rebalance?
« on: May 06, 2013, 05:59:17 AM »
New to MMM blog, have been reading MMM articles and the forums
Realizing that I have been choosing investment options without serious thought, chose to move all into vanguard target fund until I learn some about investing
Have a question on my current allocation in 401k

Here is my current allocation of total of 105k at this time.

Percent        Fund                              Expense Ratio
-------------------------------------------------------
38.33%   VANG INST INDEX PLUS    VIIIX         .02
22.52%   PIM TOTAL RT INST            PTTRX    .46
12.34%   LZRD EMRG MKTS EQ IS    LZEMX     1.12
11.73%   FID LOW PRICED STK K    FLPKX        .76
10.04%   DODGE & COX INTL STK    DODFX    .64
5.04%   VANGUARD TARGET 2040                     .0825



Maxed out 401k last year and planning on the same this year.
All of last year, the contributions went to PTTRX
All of this year, the contributions go to Vangaurd Target Retirement fund.


I think I should keep PTTRX and the VANGUARD funds.
The other funds that are on here were from years before based on recommendations from family.
Should I sell them and move the funds into VIIIX or target fund?

Thanks

the fixer

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Re: 401k - rebalance?
« Reply #1 on: May 06, 2013, 12:37:08 PM »
PTTRX is too expensive. If you had no other options in your 401(k), I'd say just rebalance all of it into the target date fund. You could probably do a little better, but that will be good enough.

lotus

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Re: 401k - rebalance?
« Reply #2 on: May 06, 2013, 08:55:59 PM »
Thank you for your response..
There are few other options..
VANG EXT MKT IDX ISP (VEMPX)
VANG INST INDEX PLUS (VIIIX)
VANG TOT INTL STK IS (VTSNX)
VANG TOT BD MK IS PL (VBMPX)
DODGE & COX STOCK (DODGX)
FID CONTRAFUND K (FCNKX)
FID GROWTH CO K (FGCKX)

Would it still be a better option to go to the target fund?

Thanks!


Joet

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Re: 401k - rebalance?
« Reply #3 on: May 06, 2013, 10:20:19 PM »
I vote for either the target date fund (1st choice)
or 3-fund portfolio to permit rebalancing

VANG TOT BD MK IS PL (VBMPX) [~30%]
+
VANG EXT MKT IDX ISP (VEMPX) [~50%]
+
VANG TOT INTL STK IS (VTSNX)  [~20%]