Author Topic: Your input requested on my new 401(k) AA post target date fund  (Read 1701 times)

ysette9

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Hi all,

I woke up recently and realized that the target date fund I have been dumping all of my money into in my 401(k) charges fees I am not comfortable with (i.e. ~0.74%). I need to get out of that and into some of the actual good index fund options available to me. I welcome your critique on my proposed asset allocation. I am 33, my husband in 34. We are hoping to retire in 5 years (aggressive) to 10 years (conservative) so I am heavy on the equities (shooting for ~90%).

Also, I am terrible sorry for the dreadful "table" below. I cannot get the html table thing to work in this forum to save my life so you are stuck with my lousy work with the space bar! A helpful note I came across in the Boglehead forum: 80% S&P + 20% mid/small cap ≈ Vanguard Total Market Index.

Class                              Name                                                   Expense Ratio          10-Year return   Current AA    Future AA
Short-term                     Government Short Term Investment Fund   0.01 - 0.07%         
Short-term                     Stable Value Fund                                   0.15-0.30%            
Bond Funds                     Broad Market Bond Index Fund           0.03%                        4.83%                                           10%
Bond Funds                     High Yield Bond Fund                           0.25 - 0.75%         
Large Cap Stock Funds     S&P 500 Indexed Equity Fund           0.01%                         7.99              13.92%                  46%
Large Cap Stock Funds     US Equity Fund                                    0.10-0.90%                                    5.04%   
Small/Mid Cap Stock    Small/Mid-Cap Indexed Equity Fund          0.02%                     9.95              7.17%                    10%
International Stock           Global Equity Fund                                   0.20-1.05%                                 1.88%   
International Stock           MSCI EAFE Indexed Equity Fund           0.04%                     5.07              1.29%                     30%
International Stock           Global Real Estate Fund                   0.50-1.05%         
International Stock          Emerging Markets Indexed Equity Fund   0.10-0.12%                                                               4%
International Stock         International Developed Markets Equity Fund   0.20-1.05%         
Other                           TIPS Fund                                           0.03-0.05%         
Other                           Commodities Fund                                   0.01-0.15%         
Company Stock Funds   XX Common Stock Fund                           0.02%                     15.94      
Company Stock Funds   XX ESOP Fund                                         0.02%                     15.96               0.65%   
Target Date Funds           TD 2005                                                   0.16-0.46%         
...         
Target Date Funds           TD 2045                                                   0.15-0.82%                                  70.05%             0%
...         
                                                                                                                                  Total       1.00              1.00


MDM

  • Walrus Stache
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Re: Your input requested on my new 401(k) AA post target date fund
« Reply #1 on: June 20, 2015, 04:12:13 PM »

MDM

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Re: Your input requested on my new 401(k) AA post target date fund
« Reply #2 on: June 20, 2015, 04:20:01 PM »
Class                              Name                                                   Expense Ratio          10-Year return   Current AA    Future AA
Bond Funds                     Broad Market Bond Index Fund           0.03%                        4.83%                                       10%
Large Cap Stock Funds     S&P 500 Indexed Equity Fund           0.01%                         7.99              13.92%                   46%
Small/Mid Cap Stock    Small/Mid-Cap Indexed Equity Fund          0.02%                     9.95              7.17%                     14%
International Stock           MSCI EAFE Indexed Equity Fund           0.04%                     5.07              1.29%                     30%

More to your real point: I ignored your "Future AA" on the first pass, and the only difference is your 4% in the Emerging Markets Indexed Equity Fund vs. the 14% I put in the Small/Mid fund.  There is no way either of us can prove any allocation is better, let alone only a 4% difference, so in short "your allocation looks fine."

Good luck!

forummm

  • Walrus Stache
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Re: Your input requested on my new 401(k) AA post target date fund
« Reply #3 on: June 20, 2015, 04:38:34 PM »
Yep. Those ERs and AA look good!

NorCal

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Re: Your input requested on my new 401(k) AA post target date fund
« Reply #4 on: June 21, 2015, 09:28:22 AM »
Looks good to me.

For my own personal preference, I would increase bonds somewhat, but be more aggressive on small-caps and add emerging markets.  I can't prove that my preference is better, it is just a preference.

ysette9

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Re: Your input requested on my new 401(k) AA post target date fund
« Reply #5 on: June 22, 2015, 04:03:26 PM »
Thanks so much for the replies, all. I appreciate your input. It makes me feel more confident in what I have selected.