The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: SparkyPeanut on December 23, 2014, 07:20:09 PM
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Hello all, excellent blog and forums!! I have the opportunity to add to my investments with an employer 5% match starting in January. The funds that I must choose from are listed below. I am thinking of 50% allocation into the S&P 500 Total Return Index (even though S&P is at an all-time high because it will be monthly contributions for about 10 years).
Perhaps I should allocate 20% into one of the fixed income funds and the remaining 30% into an international fund. Which ones?
Does anyone have any suggestions please? What would you choose? Thanks.
As of JUNE 2014
Month YTD 1 Year 3 Years 5 Years Incep.
Fixed Income Funds
Pimco Global Investment Grade Fund
0.62% 5.49% 7.32% 6.27% 8.72% 7.30%
Pimco Total Return Bond Fund
0.22% 3.68% 4.77% 3.58% 5.45% 6.22%
Russell GlobalBond Fund
0.67% 4.84% 7.26% 3.98% 6.80% 5.55%
Barclays Global Aggregate Credit Index
0.14% 3.69% 6.23% 5.27% 6.28% -
Global Equity Funds
Orbis Global Equity Fund
2.27% 4.87% 24.89% 15.13% 14.72% 12.81%
Russell World Equity Fund II
1.66% 4.11% 20.59% 9.66% 14.75% 6.23%
Fidelity International Fund
2.45% 6.03% 23.04% 10.60% 13.87% 7.10%
Cidel RAFI Enhanced Index Fund Global (Class E)
1.61% 6.40% 26.51% 12.29% 14.74% 12.26%
MSCI World Total Return (Net)
1.91% 6.18% 24.05% 11.81% 14.99% 9.63%
US Equity Funds
Russell US Equity Fund
2.22% 5.39% 23.10% 14.33% 16.91% 4.47%
Russell US Small Cap Equity Fund
5.65% 0.56% 20.00% 13.54% 19.91% 6.94%
Vanguard 500 Index Fund
2.00% 6.72% 23.57% 15.52% 17.78% 4.80%
Cidel Enhanced RAFI Index Fund US Large Cap (Class A)
2.65% 7.67% 24.28% 16.57% 19.73% 11.56%
Cidel Enhanced RAFI Index Funds US Small Cap (Class B)
3.92% 1.45% 22.85% 14.69% 22.54% 14.97%
S&P 500 Total Return Index
2.02% 6.81% 23.83% 15.82% 18.08% 4.42%
Russell 2000 Index
4.76% 2.99% 23.18% 14.10% 19.74% 11.40%
Europe Equity Funds
Russell Continental European Equity
-0.39% 8.33% 29.42% 12.10% 15.31% 4.40%
Fidelity European Growth Fund
-0.16% 5.78% 18.08% 8.98% 12.34% 9.57%
Fidelity European Smaller Companies
0.19% 3.15% 24.16% 10.52% 17.20% 10.18%
Cidel Enhanced RAFI Index Pan-European
-1.34% 6.35% 28.44% 10.93% 12.84% 11.16%
MSCI Europe Total Return (Net)
-0.64% 5.87% 22.84% 10.77% 13.59% 9.47%
Japan Equity Funds
Orbis Japan Equity Fund
3.23% -0.71% 13.67% 20.54% 9.91% 8.62%
Russell Japan Equity Fund
5.43% -2.71% 13.00% 15.74% 7.69% 3.78%
Cidel Enhanced RAFI Index Fund Japan
4.99% -2.97% 11.87% 15.96% 8.18% 5.52%
MSCI Japan Local TR (Net)
4.88% -2.96% 12.03% 16.04% 8.29% 3.03%
Alternative Fund
Orbis Optimal Fund
-0.66% 0.36% 3.20% 3.87% 1.63% 8.92%
Citigroup WGBI
0.80% 5.00% 6.85% 1.57% 3.60% 6.86%
Asia Ex-Japan & Emerging Markets
Orbis Asia Ex-Japan Equity Fund
3.12% 4.58% 24.46% 9.64% 13.83% 10.35%
Russell Pacific Basin Equity Fund
1.55% 4.94% 13.19% 2.55% 11.20% 6.96%
Russell Emerging Markets Equity Fund
2.53% 7.76% 15.95% 1.25% 10.57% 8.06%
Fidelity South East Asia Fund
2.65% 2.71% 14.18% 0.66% 10.63% 9.49%
MSCI Emerging Markets TR (Net)
2.66% 6.14% 14.31% -0.39% 9.23% 10.96%
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Waaay more detail needed. Do you currently have a taxable investment portfolio - if so, what is your allocation there? What kind of tax advantaged plan is this (traditional or Roth)? How old are you? What are your short, mid, and long term goals?
First, you need to decide on an asset allocation: amount of $ you would like allocated to domestic stocks, international stocks, and bonds. This is generally based around your age and willingness/ability to take risk - only you can decide. The starting rule of thumb is age in bonds - and then either stick with that number if you are comfortable with it, decrease bonds if you feel you can take more risk, or increase if you are more conservative/risk averse.
Also, it would be more helpful if you would list the expense ratios of each fund, rather than the past performance. Performance cannot be controlled while costs can.
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Also, it would be more helpful if you would list the expense ratios of each fund, rather than the past performance. Performance cannot be controlled while costs can.
Along with expense ratios, list any symbols/tickers if you have them. Easier to look up the fund that way if needed.
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please list only 5-6 of the lowest expense ratio funds.
You should only choose from those lowest 5-6 for the bulk of your portfolio.
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please list only 5-6 of the lowest expense ratio funds.
You should only choose from those lowest 5-6 for the bulk of your portfolio.
Disagree with first sentence, agree with last. Please list everything in there, if only so we can laugh at the high fees of some of those funds :)
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Prioritize
1. pay off any debt (credit card, personal, student loans, auto)
2. save up an emergency fund = 1/2 your yearly salary, in a short term bond fund
3. 401k or 403b up to match (if avail.) (vanguard sp500)
4. Roth IRA max (always avail.) (vanguard sp500)
5. 401k or 403b max (if avail.) (vanguard sp500)
6. taxable non-ETF vanguard sp500 or non-dividend US stock
pretty much everything else is noise or tweaks that get people in trouble
buying a house vs renting is a lifestyle "choice", even a concession, but its not an investment
you won't be able to do everything at once, each step will be a graduation to the next
each step will prevent you from falling down the ladder
and
back into debt during a market correction, or job change
you can't skip any steps, it is unwise and expensive to skip steps
its long term boring, and shouldn't demand lots of your attention
the more you brag or boast about your balance, the more people will tell you that your wrong
never, ever seek an advisor, or let them critique your portfolio, make up your own mind, in your own time
seeking compliments from an advisor, is asking for negative reenforcement
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Why the hell would I care about the return in the last month?
The most important info was left out - expense ratios.