401K choices

[legio XX]

I got this request for my opinion from a colleague. (I answered only that my old 401K plan included Pimco and it had done alright - kind of fuzzy there.) I don't know the overall situation such as AA, total nest egg or % represented by this 401K, but the home is paid off and no dependent kids, etc. I would bet that the overall picture would meet boglehead standards.

(And I never heard of taking an in-service withdrawal - sounds like a great idea if you can do it!)

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My company is changing 401(k) providers; the index option offered for stocks isn't bad, and the cost went from .84% to .60% ....

The bond choices, however ...

Blackrock High Yield Bond Inv A BHYAX 1.07%
Blackrock Inflation Protected Bond Inv A BPRAX .99%
AllianceBern Global Bond A ANAGX .95%
JP Morgan Total Return A JMTAX 1.20%
Pimco Income A PONAX 1.01%

What do you think? Pimco? Or should I rearrange my Vanguard so that the bonds are there, and the 401(k) is stock-only ?

I am a few years away from being able to do an in-service withdrawal and switch funds over to Vanguard.
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Any comments/advice, thanks in advance,

Vic

[ofcmetz]

From the little we know from this post, I would recommend he get his fixed income from Vanguard. Also, you may want to ask him if the plan offers a stable value fund that he didn't mention.

[Default User BR]

(And I never heard of taking an in-service withdrawal - sounds like a great idea if you can do it!)

For employee contributions to deferred traditional or Roth, in-service rollover requires reaching age 59-1/2. Presumable that's what the person meant by being a few years away. It sounds like the plan allows this, although it is not required to do so.


Brian

[retiredjg]

From the little we know from this post, I would recommend he get his fixed income from Vanguard. Also, you may want to ask him if the plan offers a stable value fund that he didn't mention.

This is what I think as well. If there is adequate flexibility, use a Vanguard bond fund. Also check for a stable value fund (sometimes, they seem to fall off the list or be listed somewhere else) and use that if necessary. If not and if bonds must be held in the 401k, I'd probably use the PIMCO or Blackrock inflation protected choice.

[legio XX]

Thanks folks,

I passed this along.

Vic