Author Topic: Another 401K Allocation Advice Thread  (Read 1242 times)

wkumtrider

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Another 401K Allocation Advice Thread
« on: December 03, 2015, 10:23:15 AM »
Hi There,

I was hoping I could get a little advice on fund allocations in my 401K.  I have a 401K with Fidelity and there are quite a few options to chose from.  I looked for the smallest ERs and based my allocation decisions on that.  I plan to retire in 10 yrs. (I also have an IRA and taxable accounts with a lot more money).  My goal is to acquire as much grothw as possible before retirement. This is what I'm currently invested in:

20%         FID FREEDOM 2040           Blended Investment   N/A
20.01%   SPTN MID CAP IDX ADV      Stock Investments   Mid-Cap
19.99%   VANG SM CAP IDX ADM       Stock Investments   Small Cap
18.88%   OAKMARK INTL I                  Stock Investments   International
14.15%   SPTN 500 INDEX ADV          Stock Investments   Large Cap
6.92%   FID BLUE CHIP GR               Stock Investments   Large Cap

This breaks down to 72.42% Domestic stock, 24.24% foreign stock, 1.78% short term, 1.11% Bonds, and 0.46% other.

Is it necessary to invest in all the funds l listed?  Wold it make sense to drop one of the large caps and invest into one instead of two?  I am a novice when it comes to choosing funds.  Any help would be greatly appreciated!

AdrianC

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Re: Another 401K Allocation Advice Thread
« Reply #1 on: December 04, 2015, 08:41:41 AM »
This might help:

http://paulmerriman.com/fidelity-3/

Read all his reasoning and all that.

TomTX

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Re: Another 401K Allocation Advice Thread
« Reply #2 on: December 05, 2015, 06:48:18 AM »
Do you have more than $50k invested? That's my rule of thumb for minimum amount before you should start thinking about splitting into two funds. It's perfectly fine to keep thinking about it up to around $250k while staying in a single, broad index type fund.