401k asset allocation guidance needed -

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401k asset allocation guidance needed -

Post by PhillyPhan » Wed Feb 13, 2013 7:39 pm

31 M , single , high risk tolerance , looking for guidance on a well diversified asset allocation for 401k.


Aggregate Bond Index Fund - 1.5 %
Large Cap Stock Index Fund - 47.5%
Small-Mid Cap Stock Index Fund - 34.5%
International ACWI-Ex-US Index Fund - 18.5%

This current blend has returned 6.68% YTD , however I am uncertain as to whether or not I am too low in my International and heavy in the Large and Small/Mid.

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Re: 401k asset allocation guidance needed -

Post by nydad » Wed Feb 13, 2013 8:17 pm

You might get better response if you put your question in the form outlined here:
http://www.bogleheads.org/forum/viewtop ... f=1&t=6212

You should also list the ticker symbols and expense ratios for the funds you have and the other funds available in the 401k.

You can plug the domestic tickers into morningstar instant x-ray and it will tell you what your current breakdown is, and compare it to VTSAX (total stock market) - that will give you a sense of how far you are tilted to small. If you do want to tilt to small, there are a lot of threads and papers on that subject - there may be higher returns for doing so, but we don't know if those higher returns will persist in the future.

You have a very low bond allocation - you may want to consider upping that - even to 10% - to give you something to rebalance against.

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Re: 401k asset allocation guidance needed -

Post by retiredjg » Wed Feb 13, 2013 8:18 pm

Not what you asked, but my thought is that you don't have enough bonds. I think you should consider at least 20% in bonds.

Your international is a little low. Vanguard recommends between 20% and 40% of your stocks. You are just below that.

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