Author Topic: Im in my mid-twenties and I need your helping building my retirement portfolio  (Read 3517 times)

bigskyrookie

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Hello Mustachians,

I am hoping for some investing guidance and recommendations. I am in my mid-twenties and therefore am trying to invest for the long-haul. I currently contribute 8.5 percent of my salary to my pension plan and 12% of my salary to my 457 plan. These are my only accounts right now and I am looking for an allocation that is moderately aggressive. My desired allocation is ~70% U.S. stocks, ~20% foreign stocks, and ~10% bonds. Below are the fund options for both of my accounts with their expense ratios. I would appreciate any guidance or suggestions.

Thanks!



Defined Contribution (Pension) Options-

RNPGX (American Funds New Perspective R6)         .45

OAKIX (Oakmark International I)    .95

ODVYX (Oppenheimer Developing Markets Y)   1.05

TASVX (Prudential QMA Small-Cap Value Z)   .72

VSGIX (Vanguard Small Cap Growth Index Instl)  .07

MGOAX (Victory Munder Mid-Cap Core Growth A)  1.32

ACAZX (Alger Capital Appreciation Z)  .90

PTRQX (Prudential Total Return Bond Q)  .46



457 Plan Options-

RNPGX (American Funds New Perspective R6)  .45

ARTIX (Artisan International Inv)  1.17

DODFX (Dodge & Cox International Stock)  .64

ODVYX (Oppenheimer Developing Markets Y)  1.05

VSGIX (Vanguard Small Cap Growth Index Instl)   .07

MGOAX (Victory Munder Mid-Cap Core Growth A)    1.32

NBGEX  (Neuberger Berman Genesis Fund - Trust)   .1.10

FCNTX  (Fidelity Contrafund)          .70

PRILX  (Parnassus Core Equity - Inst)   .67

PTRQX  (Prudential Total Return Bond Q)   .46
« Last Edit: April 11, 2016, 11:54:12 AM by bigskyrookie »

FerrumB5

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That is a lot of positions you are investing in. What are the expense ratios for all of them?

forummm

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Instead of just reposting this over and over, I suggest you add the expense ratio data we are asking for. We can only help if you provide the necessary information. Reposting it doesn't help.

bigskyrookie

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Thanks for the advice forummm, everything should be up now.

J.Milly

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How is it that there's no basic index funds, JEEZ. Considering the S&P 500 is a large cap index you might want to stick with that. But MMM wisdom is total stock market, meaning you need large, med and small cap which would require you buying many funds to build :/
« Last Edit: April 12, 2016, 01:02:18 PM by J.Milly »

talltexan

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What about an allocation that was 1/4 the Vangard small cap stocks, together with 3/4 the long-term bonds? Rebalance once/yr on your birthday, and you'll get some growth out of the stocks, pay low fees, and have nice ballast from the bonds (without having to pay taxes on that income).

forummm

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This is probably the weirdest combination of fund options I've seen. Honestly, if it were me I would go 100% VSGIX in each. Just be aware that it's probably going to be a little more volatile than a more balanced portfolio. But over the long run should match the market pretty well, and may exceed it. But the real kicker is the expense ratios. In your taxable savings and IRA you can do some large cap and international and bonds.

GregO

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Is that really all of your options?  It is really weird to not be able to have better exposure to large companies.  I think you should choose a balanced portfolio over low expense ratios.  Low expense ratios are great, but they aren't all that matter.  I'd definitely prefer a diversified portfolio, even if I had to pay a little more in expense ratios.  My suggestion would be to combine both your pension and 457 funds to meet your allocation with the following funds:

RNPGX is a good world fund, with 50% assets international and 50% US large funds.  You could use that for all of your international holdings, or include some ODVYX if you want to add a little more risk with some emerging markets.
PRILX is the best large company fund, so I'd use that for the rest of the large fund in my portfolio.  And a bonus, it focuses on socially conscious investing.
For small funds, everyone pretty much agrees that VSGIX is your best choice.  And for bond funds, your only option is PTRQX.  So put it all together, and I'd go with the following if I was in your shoes:

30% RNPGX (count as 50% international, 50% large company)
5% ODVYX (could omit and increase RNPGX)
35% PRILX (Could be split or replaced with FCNTX if desired)
20% VSGIX
10% PTRQX

NoStacheOhio

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Is that really all of your options?  It is really weird to not be able to have better exposure to large companies.  I think you should choose a balanced portfolio over low expense ratios.  Low expense ratios are great, but they aren't all that matter.  I'd definitely prefer a diversified portfolio, even if I had to pay a little more in expense ratios.  My suggestion would be to combine both your pension and 457 funds to meet your allocation with the following funds:

This list is different than the other thread I saw. VINIX was on the other list, as well as VTIAX.

GregO

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With this evidence, it makes statistical sense for a younger investor demographic to "overweight" in small cap value / growth ( looks to be  TASVX and VSGIX ) as the compounding will be greater within tax deferred structure.
At the risk of de-railing this thread, I'd like to hear how much you think small stocks should be over-weighted.  The "market" is roughly 10% small cap stocks right?  I've always agreed and been overweighted close to 20% small stocks.  Are you suggesting significantly more?

TheRealOne10000

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With this evidence, it makes statistical sense for a younger investor demographic to "overweight" in small cap value / growth ( looks to be  TASVX and VSGIX ) as the compounding will be greater within tax deferred structure.
At the risk of de-railing this thread, I'd like to hear how much you think small stocks should be over-weighted.  The "market" is roughly 10% small cap stocks right?  I've always agreed and been overweighted close to 20% small stocks.  Are you suggesting significantly more?

My 401K is
-30% large
-30% mid
-30% small
10% international