Author Topic: Help me decide if I need to move things in my 403b around  (Read 2149 times)

onlyuptome

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Help me decide if I need to move things in my 403b around
« on: April 11, 2016, 05:12:37 PM »
Here is what's available to me, and how I have allocated it so far, based on the advice of the plan representative who helped me when I was hired.  I'm making the minimum contribution to get the employer match.  At the moment, I'm probably 15-20 years from retirement (but working on cutting that down).  I understand Vanguard is generally looked favorably upon, and I can't find easily copied information about the fees associated with each of these funds.  So should I move everything into my Vanguard options?  Am I satisfactorily diversified?  Too much?  Not enough? 

Stability of Principal   
697   Voya Fixed Plus Account III                                                 15%
003   Voya Money Market Portfolio - Class I   

Bonds   
1583   Pioneer Strategic Income Fund - Class Y Shares   
2482   Prudential High Yield Fund - Class Z   
799   Vanguard® Total Bond Market Index Fund - Institutional   10%
422   Voya Global Bond Portfolio - Initial Class                            10%

Asset Allocation   
790   Voya Solution 2025 Portfolio - Initial Class   
761   Voya Solution 2035 Portfolio - Initial Class   
764   Voya Solution 2045 Portfolio - Initial Class   
1166   Voya Solution 2055 Portfolio - Initial Class   
767   Voya Solution Income Portfolio - Initial Class   

Balanced   
1257   VY® T. Rowe Price Capital Appreciation Portfolio - Inst   

Large Cap Value   
1332   Pioneer Equity Income Fund - Class Y Shares                               20%
566   Vanguard® Institutional Index Fund - Institutional Shares   

Large Cap Growth   
2492   Massachusetts Investors Growth Stock Fund - Class R4                   20%

Small/Mid/Specialty   
9677   AB Small Cap Growth Portfolio - Class Z   
6305   American Century Mid Cap Value Fund - R6 Class   
1713   Baron Growth Fund - Institutional Shares   
1197   Vanguard® Mid-Cap Index Fund - Institutional Shares                      15%
1198   Vanguard® Small-Cap Index Fund - Institutional Shares   
1771   Victory Sycamore Small Company Opportunity Fund - Class I   
682   VY® Clarion Real Estate Portfolio - Institutional Class   

Global / International   
1960   American Funds Capital World Growth and Income FundSM - R-6         10%
1723   American Funds EuroPacific Growth Fund® - Class R-6   
1954   Oppenheimer Developing Markets Fund - Class Y   

forummm

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Re: Help me decide if I need to move things in my 403b around
« Reply #1 on: April 11, 2016, 06:24:28 PM »
Without knowing the expense ratios I would put 100% of your equities into:
566   Vanguard® Institutional Index Fund - Institutional Shares
1197   Vanguard® Mid-Cap Index Fund - Institutional Shares                     
1198   Vanguard® Small-Cap Index Fund - Institutional Shares   

You can pick the percentage allocations in each. 100% in 566 would be OK. 80/10/10 or 40/30/30 or whatever is fine too.

For your bonds I would just stick with
799   Vanguard® Total Bond Market Index Fund - Institutional

I sure as hell would get out of the American Funds.

seattlecyclone

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Re: Help me decide if I need to move things in my 403b around
« Reply #2 on: April 11, 2016, 06:30:15 PM »
First step: write an "investment policy statement" that will determine how much of your portfolio should be US stock, international stock, US bonds, international bonds, other assets. Different people have different risk tolerances and your investment policy statement should capture this for your situation.

I see little reason to invest in the non-Vanguard funds given that you have Vanguard Institutional class funds available. The Vanguard Institutional Index Fund is an S&P 500 index fund with a 0.02% expense ratio. You can do a lot worse than to use this fund to meet 100% of your domestic stock allocation. To mimic a total stock market index, buy the Vanguard Institutional Index, Mid-Cap Index, and Small-Cap index in an 80/10/10 ratio.

I'd get out of the "Stability of Principal" fund. That's code for cash equivalents, which is not what you want when you're looking for long-term growth.

The Vanguard Total Bond Market fund is fine for your domestic bond allocation.

Given that the international stock funds in your 401(k) are from higher-fee providers, you may wish to buy international funds in your IRA or another account instead of your 401(k).

onlyuptome

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Re: Help me decide if I need to move things in my 403b around
« Reply #3 on: April 12, 2016, 06:00:11 PM »
Excellent!  Thank you so much for the input!

 

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