Author Topic: Another 401k advice thread  (Read 1121 times)

HMM12

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Another 401k advice thread
« on: February 08, 2017, 01:37:32 PM »
Hi everyone - 1st post - someone recommended this forum to me.

My questions is should I keep relying on active management funds by "star" PMs and trust the track record or just use index funds. I am thinking about moving to 3 index funds in my 401k - large, mid and small cap. I do work for an active management shop so I feel bad dropping them but I don't think it's really the best anymore.

rubybeth

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Re: Another 401k advice thread
« Reply #1 on: February 08, 2017, 01:50:43 PM »
I would say index but maybe post the funds you're into for comparison.

HMM12

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Re: Another 401k advice thread
« Reply #2 on: February 08, 2017, 01:58:38 PM »
I'd rather not say which funds specifically because I don't want to say who I work for but it's a very large mutual fund company in new England - I'm 33 and have ~$226k in the account.

neo von retorch

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Re: Another 401k advice thread
« Reply #3 on: February 08, 2017, 02:04:31 PM »
Ideally, you'd have an investment portfolio statement which would include your desired allocation. From there, you want to pick the mutual funds that best meet your allocation needs with the lowest possible expense ratios.

"large, mid, small cap" isn't really the most elegant (opinion) way to allocate funds. You want total market stocks, maybe a mix of domestic and international, and then some portion in bonds or other asset classes as defined in your IPS.

solon

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Re: Another 401k advice thread
« Reply #4 on: February 08, 2017, 02:06:14 PM »
I'd rather not say which funds specifically because I don't want to say who I work for but it's a very large mutual fund company in new England - I'm 33 and have ~$226k in the account.

... wonder who that could be??

HMM12

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Re: Another 401k advice thread
« Reply #5 on: February 08, 2017, 02:07:39 PM »
I would want to stay 90-10 and all domestic equity.

Ideally, you'd have an investment portfolio statement which would include your desired allocation. From there, you want to pick the mutual funds that best meet your allocation needs with the lowest possible expense ratios.

"large, mid, small cap" isn't really the most elegant (opinion) way to allocate funds. You want total market stocks, maybe a mix of domestic and international, and then some portion in bonds or other asset classes as defined in your IPS.