Yet another 401k asset allocation question
Yet another 401k asset allocation question
Greetings Bogleheads,
Can you all help me in constructing a 401k portfolio? I just started my career in mid-June and realize the default option (Target Retirement Fund) may not be my best option. I'm not in love with my options (our 401k is through Fidelity) so I appreciate your help.
A few pieces of info:
I like the idea of holding bonds for rebalancing opportunities so will probably seek an age or age -10 in bonds rule (I'm 22).
I also like the idea of the core four portfolio that Bogleheads so strongly preach. I'm also intrigued by the great performance of some of these funds with high ERs -- don't tell me about past performance and future performance -- I know. The point is, I'm open to all suggestions.
Thanks for the help!
AMG SKYLINE SPL EQ (SKSEX) 1.47%
BARON GROWTH INST (BGRIX) 1.05%
DRIEHAUS EMRG MKTS (DREGX) 1.66%
FID BLUE CHIP GR K (FBGKX) 0.61%
FID CONTRAFUND K (FCNKX) 0.56%
FID DIVERSIFD INTL K (FDIKX) 0.78%
FID LOW PRICED STK K (FLPKX) 0.68%
FID OTC K (FOCKX) 0.62%
LOOMIS SM CP GRTH N (LSSNX) 0.83%
MFS VALUE R5 (MEIKX) 0.57%
SPTN INTL INDEX INS (FSPNX) 0.10%
SPTN TOT MKT IDX INS (FSKTX) 0.07%
FID FREEDOM K 2005 (FFKVX) 0.50%
FID FREEDOM K 2010 (FFKCX) 0.53%
FID FREEDOM K 2015 (FKVFX) 0.55%
FID FREEDOM K 2020 (FFKDX) 0.57%
FID FREEDOM K 2025 (FKTWX) 0.61%
FID FREEDOM K 2030 (FFKEX) 0.65%
FID FREEDOM K 2035 (FKTHX) 0.66%
FID FREEDOM K 2040 (FFKFX) 0.66%
FID FREEDOM K 2045 (FFKGX) 0.66%
FID FREEDOM K 2050 (FFKHX) 0.65%
FID FREEDOM K 2055 (FDENX) 0.66%
FID FREEDOM K INCOME (FFKAX) 0.44%
FID CAPITAL & INCOME (FAGIX) 0.71%
SPTN US BOND IDX IS (FXSTX) 0.07%
VANG INFL PROT INST (VIPIX) 0.07%
FID RET GOVT MM (FGMXX) 0.42%
Can you all help me in constructing a 401k portfolio? I just started my career in mid-June and realize the default option (Target Retirement Fund) may not be my best option. I'm not in love with my options (our 401k is through Fidelity) so I appreciate your help.
A few pieces of info:
I like the idea of holding bonds for rebalancing opportunities so will probably seek an age or age -10 in bonds rule (I'm 22).
I also like the idea of the core four portfolio that Bogleheads so strongly preach. I'm also intrigued by the great performance of some of these funds with high ERs -- don't tell me about past performance and future performance -- I know. The point is, I'm open to all suggestions.
Thanks for the help!
AMG SKYLINE SPL EQ (SKSEX) 1.47%
BARON GROWTH INST (BGRIX) 1.05%
DRIEHAUS EMRG MKTS (DREGX) 1.66%
FID BLUE CHIP GR K (FBGKX) 0.61%
FID CONTRAFUND K (FCNKX) 0.56%
FID DIVERSIFD INTL K (FDIKX) 0.78%
FID LOW PRICED STK K (FLPKX) 0.68%
FID OTC K (FOCKX) 0.62%
LOOMIS SM CP GRTH N (LSSNX) 0.83%
MFS VALUE R5 (MEIKX) 0.57%
SPTN INTL INDEX INS (FSPNX) 0.10%
SPTN TOT MKT IDX INS (FSKTX) 0.07%
FID FREEDOM K 2005 (FFKVX) 0.50%
FID FREEDOM K 2010 (FFKCX) 0.53%
FID FREEDOM K 2015 (FKVFX) 0.55%
FID FREEDOM K 2020 (FFKDX) 0.57%
FID FREEDOM K 2025 (FKTWX) 0.61%
FID FREEDOM K 2030 (FFKEX) 0.65%
FID FREEDOM K 2035 (FKTHX) 0.66%
FID FREEDOM K 2040 (FFKFX) 0.66%
FID FREEDOM K 2045 (FFKGX) 0.66%
FID FREEDOM K 2050 (FFKHX) 0.65%
FID FREEDOM K 2055 (FDENX) 0.66%
FID FREEDOM K INCOME (FFKAX) 0.44%
FID CAPITAL & INCOME (FAGIX) 0.71%
SPTN US BOND IDX IS (FXSTX) 0.07%
VANG INFL PROT INST (VIPIX) 0.07%
FID RET GOVT MM (FGMXX) 0.42%
Re: Yet another 401k asset allocation question
I find that sorting by expense ratios often clarifies the situation:
SPTN TOT MKT IDX INS (FSKTX) 0.07%
SPTN US BOND IDX IS (FXSTX) 0.07%
VANG INFL PROT INST (VIPIX) 0.07%
SPTN INTL INDEX INS (FSPNX) 0.10%
FID RET GOVT MM (FGMXX) 0.42%
FID FREEDOM K INCOME (FFKAX) 0.44%
FID FREEDOM K 2005 (FFKVX) 0.50%
FID FREEDOM K 2010 (FFKCX) 0.53%
FID FREEDOM K 2015 (FKVFX) 0.55%
FID CONTRAFUND K (FCNKX) 0.56%
MFS VALUE R5 (MEIKX) 0.57%
FID FREEDOM K 2020 (FFKDX) 0.57%
FID BLUE CHIP GR K (FBGKX) 0.61%
FID FREEDOM K 2025 (FKTWX) 0.61%
FID OTC K (FOCKX) 0.62%
FID FREEDOM K 2030 (FFKEX) 0.65%
FID FREEDOM K 2050 (FFKHX) 0.65%
FID FREEDOM K 2035 (FKTHX) 0.66%
FID FREEDOM K 2040 (FFKFX) 0.66%
FID FREEDOM K 2045 (FFKGX) 0.66%
FID FREEDOM K 2055 (FDENX) 0.66%
FID LOW PRICED STK K (FLPKX) 0.68%
FID CAPITAL & INCOME (FAGIX) 0.71%
FID DIVERSIFD INTL K (FDIKX) 0.78%
LOOMIS SM CP GRTH N (LSSNX) 0.83%
BARON GROWTH INST (BGRIX) 1.05%
AMG SKYLINE SPL EQ (SKSEX) 1.47%
DRIEHAUS EMRG MKTS (DREGX) 1.66%
You can put together a nice three fund portfolio with FSKTX, FXSTX, and FSPNX. Mix in VIPIX if you want exposure to TIPS.
SPTN TOT MKT IDX INS (FSKTX) 0.07%
SPTN US BOND IDX IS (FXSTX) 0.07%
VANG INFL PROT INST (VIPIX) 0.07%
SPTN INTL INDEX INS (FSPNX) 0.10%
FID RET GOVT MM (FGMXX) 0.42%
FID FREEDOM K INCOME (FFKAX) 0.44%
FID FREEDOM K 2005 (FFKVX) 0.50%
FID FREEDOM K 2010 (FFKCX) 0.53%
FID FREEDOM K 2015 (FKVFX) 0.55%
FID CONTRAFUND K (FCNKX) 0.56%
MFS VALUE R5 (MEIKX) 0.57%
FID FREEDOM K 2020 (FFKDX) 0.57%
FID BLUE CHIP GR K (FBGKX) 0.61%
FID FREEDOM K 2025 (FKTWX) 0.61%
FID OTC K (FOCKX) 0.62%
FID FREEDOM K 2030 (FFKEX) 0.65%
FID FREEDOM K 2050 (FFKHX) 0.65%
FID FREEDOM K 2035 (FKTHX) 0.66%
FID FREEDOM K 2040 (FFKFX) 0.66%
FID FREEDOM K 2045 (FFKGX) 0.66%
FID FREEDOM K 2055 (FDENX) 0.66%
FID LOW PRICED STK K (FLPKX) 0.68%
FID CAPITAL & INCOME (FAGIX) 0.71%
FID DIVERSIFD INTL K (FDIKX) 0.78%
LOOMIS SM CP GRTH N (LSSNX) 0.83%
BARON GROWTH INST (BGRIX) 1.05%
AMG SKYLINE SPL EQ (SKSEX) 1.47%
DRIEHAUS EMRG MKTS (DREGX) 1.66%
You can put together a nice three fund portfolio with FSKTX, FXSTX, and FSPNX. Mix in VIPIX if you want exposure to TIPS.
-
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- Joined: Fri May 13, 2011 6:27 pm
Re: Yet another 401k asset allocation question
You have great options
Total market index(fsktx)63%
Total bond index(fxstx)12%
Total international index(fspnx)25%
John
Total market index(fsktx)63%
Total bond index(fxstx)12%
Total international index(fspnx)25%
John
- LAlearning
- Posts: 1365
- Joined: Wed May 09, 2012 12:26 pm
- Location: Los Angeles
Re: Yet another 401k asset allocation question
I wouldn't be in love either knowing I was missing small caps in FSPNX.....
I know nothing!
-
- Posts: 6393
- Joined: Fri May 13, 2011 6:27 pm
Re: Yet another 401k asset allocation question
At 22 and just starting out the most important thing is savings rate
I pay 10x more in 401, I'd love to have OP plan
John
I pay 10x more in 401, I'd love to have OP plan
John
-
- Posts: 8421
- Joined: Tue Aug 06, 2013 12:43 pm
Re: Yet another 401k asset allocation question
Use a Roth IRA to pick those up.LAlearning wrote:I wouldn't be in love either knowing I was missing small caps in FSPNX
- M_to_the_G
- Posts: 549
- Joined: Mon Jan 21, 2013 8:57 am
Re: Yet another 401k asset allocation question
+1. Fantastic options.Johm221122 wrote:You have great options
Total market index(fsktx)63%
Total bond index(fxstx)12%
Total international index(fspnx)25%
John
Re: Yet another 401k asset allocation question
This. You can branch out into a more complex portfolio when your assets go up. At this age, your savings rate is way more important.Johm221122 wrote:You have great options
Total market index(fsktx)63%
Total bond index(fxstx)12%
Total international index(fspnx)25%
John
"Don't trust everything you read on the Internet"- Abraham Lincoln
Re: Yet another 401k asset allocation question
+1Johm221122 wrote:You have great options
Total market index(fsktx)63%
Total bond index(fxstx)12%
Total international index(fspnx)25%
John
Or use round numbers:
TSM 65
TBM 10
TISM 25
As others have said, at your tender age how much you save is way more important than how or what funds you pick. Having said that, the three funds above are no brainers for your portfolio.
Re: Yet another 401k asset allocation question
The Bogleheads have spoken. Thanks, everybody!