Author Topic: Whelp, I should know which funds to pick for my 401k  (Read 1995 times)

BabyShark

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Whelp, I should know which funds to pick for my 401k
« on: December 29, 2017, 07:38:47 AM »
But every time I look at it, I feel dumb.  I think the 500 Index is where I want to be but could somebody help with my distributions and offer some advice?  I'm 27 right now.

Below are my options and current distributions.  FWIW my firm pays the plan expenses:

500 Index (Vanguard)   27%
American Funds Growth Fund of America Fund   5%
Baird Core Plus Bond Fund   8%
BlackRock Equity Dividend Fund   5%
Equity-Income Fund (Vanguard)   5%
EuroPacific Growth (American)    8%
Janus Henderson Triton Fund   6%
JP Morgan Mid Cap Value Fund   2%
Mid Cap Index (Vanguard)   6%
Oppenheimer Global Fund   2%
Sel Mid Cap Gr (TRP/Frontier)   2%
T. Rowe Price Blue Chip Growth Fund   15%
Invesco Small Cap Value Fund   7%
SF Guaranteed   2%

There are also some American Funds Target Date Retirement Funds that are an option but I've ignored those.

TomTX

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Re: Whelp, I should know which funds to pick for my 401k
« Reply #1 on: December 29, 2017, 08:24:49 AM »
Do you have more than $250,000?

If not, just dump it all in the Vanguard S&P 500 while you learn about asset allocation.

Cromacster

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Re: Whelp, I should know which funds to pick for my 401k
« Reply #2 on: December 29, 2017, 08:33:56 AM »
Looks like your just taking the shotgun approach, a little bit of everything.

As above, learn about asset allocation and develop a investment policy statement.  Also, your company may pay the plan expenses, but you still pay the expense ratio for each fund you own.  Would be good to know what those are.

http://jlcollinsnh.com/stock-series/



Radagast

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Re: Whelp, I should know which funds to pick for my 401k
« Reply #3 on: December 29, 2017, 09:23:40 PM »
I recommend any/all of the funds on your list that contain the word "index".

Probably not any of the rest.

MrUpwardlyMobile

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Re: Whelp, I should know which funds to pick for my 401k
« Reply #4 on: December 30, 2017, 11:43:42 PM »
Looks like your just taking the shotgun approach, a little bit of everything.

As above, learn about asset allocation and develop a investment policy statement.  Also, your company may pay the plan expenses, but you still pay the expense ratio for each fund you own.  Would be good to know what those are.

http://jlcollinsnh.com/stock-series/

Collins would recommend serious consolidation and simplification.  He tends to eliminate high fee funds and focuses on index funds.  Youíll probably find the vanguard options are lower cost and at least one is probably an index fund.

Travis

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Re: Whelp, I should know which funds to pick for my 401k
« Reply #5 on: December 31, 2017, 12:25:26 AM »
Looks like your just taking the shotgun approach, a little bit of everything.

Also, your company may pay the plan expenses, but you still pay the expense ratio for each fund you own.  Would be good to know what those are.

http://jlcollinsnh.com/stock-series/

OP, I'll help you out.

Invesco Small Cap Value Fund. Stock ticker VSCAX: 5.5% front load, 1.1% ER. That's 6.6% of your money right off the top and the fund only equaled the S&P500 in performance this year.

American Funds Growth Fund of America Fund. Stock ticker AGTHX. 5.75% front load, .64% ER.

EuroPacific Growth Fund. Stock ticker AEPGX. 5.75% front load, .85% ER.

A couple of the funds on your list did very well this year and even the last couple years; however, they're all quite expensive and their out-performance probably won't last.  The INVESCO and American funds are criminally expensive with most trailing the S&P500 before expenses.  This is true of most of their products, even those not on your list.  You pay these expenses, not your company.

My advice would be to put it all in your S&P500 index fund until you decide what allocation of bonds you might want - if any.
« Last Edit: January 02, 2018, 03:55:40 PM by Travis »

mies

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Re: Whelp, I should know which funds to pick for my 401k
« Reply #6 on: December 31, 2017, 02:05:44 AM »
I am going to add to the chorus. The S&P 500 fund is probably the best option. If it is VINIX, the expense ratio should only be .035. Having all those funds is just making things more complicated than necessary and robbing you of potential returns.

Heckler

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Re: Whelp, I should know which funds to pick for my 401k
« Reply #7 on: December 31, 2017, 05:13:08 AM »
The remedy to feeling stupid is to get smart.

Start here

https://www.bogleheads.org/wiki/Getting_started

ysette9

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Re: Whelp, I should know which funds to pick for my 401k
« Reply #8 on: December 31, 2017, 01:20:36 PM »

BabyShark

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Re: Whelp, I should know which funds to pick for my 401k
« Reply #9 on: January 02, 2018, 03:25:48 PM »
Much appreciated everybody :)

Iíll be shifting things around shortly.  Not at $250k just yet.

talltexan

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Re: Whelp, I should know which funds to pick for my 401k
« Reply #10 on: January 04, 2018, 08:29:07 AM »
I own the Vanguard Equity Income fund, and I recommend it to young people. A lot of work is out there justifying a belief in a Value-premium that--over decades--should come out of that. See what you can find by Larry Swedroe.