Which is a better Bond Fund for my 401k

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xrw1
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Which is a better Bond Fund for my 401k

Post by xrw1 » Wed Apr 30, 2014 12:48 pm

Good afternoon everyone,

My asset allocation is 85% Stocks 15% bonds and I currently hold all my bonds in my 401k with Pimco Total Returns.

My 401k listing has been updated and I have 3 choices for my bonds now. I was wondering which one would be the best to use for bonds.

PTRAX - Pimco Total Returns Admin ER: 0.71 (intermediate-term bonds)
BSIIX - Blackroack Strategic incom Opps Instl ER: 0.69 (Nontraditional Bonds)
LSBDX - Loomis Sayles Bond Instl ER: 0.63 (Multisector Bonds)

Thank you very much!

Jack FFR1846
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Re: Which is a better Bond Fund for my 401k

Post by Jack FFR1846 » Wed Apr 30, 2014 1:02 pm

I used the scottrade comparison graphical tool. Loomis has the lowest ER and of the 3 has been the best performer over the last year. Less volitile than PTRAX.

I'd personally go with the lowest ER. The 3 funds have different compositions, though. Intermediate term, nontraditional and multisector.

After entering all 3, hit performance and it puts them all on the same graph.
Bogle: Smart Beta is stupid

HurdyGurdy
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Re: Which is a better Bond Fund for my 401k

Post by HurdyGurdy » Wed Apr 30, 2014 1:13 pm

From your previous post at viewtopic.php?f=1&t=101504&p=1470618#p1470618,
you had a good plan to have your bonds in your Roth IRA, like Vanguard' s Total Bond with 0.2% of expense rate.

xrw1
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Re: Which is a better Bond Fund for my 401k

Post by xrw1 » Wed Apr 30, 2014 1:19 pm

JuanZ: I did have some of my bonds in my roth, but I needed to make more space for my International holdings therefore I changed things around to have my 401K hold my Domestic and Bond allocations. My roth now holds all my international

HurdyGurdy
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Re: Which is a better Bond Fund for my 401k

Post by HurdyGurdy » Wed Apr 30, 2014 1:30 pm

Got it. Makes sense. Then I would choose the one that is more conservative, more loaded with government funds. Check in Morningstar what is their composition.

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abuss368
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Re: Which is a better Bond Fund for my 401k

Post by abuss368 » Wed Apr 30, 2014 1:37 pm

Any good short or intermediate term bond fund should provide safety and income in a portfolio.

Often we are limited unfortunately in our employer retirement plan offerings with most of the investments being high cost.

That said, I would probably select the Pimco option and stay the course.
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + U.S. & International REITs

xrw1
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Re: Which is a better Bond Fund for my 401k

Post by xrw1 » Sat May 03, 2014 9:15 am

Thank you for all your replies.

I am trying to get my company to pick up a bond index with lower ER.

I am going to stay with the intermediate term fund as abuss368 stated it should provide a margin of safety.

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