401k Portfolio Help

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Dinvestor
Posts: 1
Joined: Mon Mar 20, 2017 10:27 am

401k Portfolio Help

Post by Dinvestor » Mon Mar 20, 2017 1:29 pm

Hey guys -

I am looking for some advice on my current allocation for my Roth 401k.

Status: Single
Age: 23
Tax Bracket: 25%
My Current Roth 401k Balance is ~ 7800. Will end up contributing around 15k for the year (started contributing in September).

Current High Level Roth 401(k) Allocation:
Bond - 10%
Stock (Growth/Income) - 47%
Stock (Growth) - 11%
International Stock - 32%

Current Asset Roth 401(k) Allocation:
Vanguard Institutional Total Bond Market Index Trust - 10%
Vanguard Value Index - 13%
Vanguard Midcap Fund - 6%
Vanguard REIT Index Fund - 12%
Vanguard Growth Index - 11%
Vanguard Inst Total International Stk Mkt Index Trust - 32%

Available Options w/ expenses:
Stock - (Growth/Income)
Vanguard Institutional 500 Index Trust - .01
Vanguard Value Index (VIVIX) - .07
Vanguard Mid Cap Index Fund (VMCPX) - .05
Vanguard Small Cap Index Fund (VSCPX) - .05
Vanguard REIT Index Fund (VGSNX) - .1

Stock - (Growth)
Fidelity Contrafund Commingled Pool - .43
Fidelity OTC Commingled Pool - .48
Vanguard Growth Index (VIGIX) - .07
Royce Opportunity Fund (ROFIX) - 1.05

International - (Stock)
American New Perspective Fund (RNPGX) - .04
Fidelity Diversified International Commingled Pool - .58
Vanguard Emerging Markets Fund (VEMRX) - .1
Vanguard Inst Total International Stk Mkt Index Trust - .06

I feel like I am too allocated for how much I have in my account. Should I focus on large cap stocks until I reach a certain threshold? Should I be in international positions? Should I change my future contributions and not touch the 7800 or change future contributions and move the 7800 accordingly?

Thank you guys for your help.

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Duckie
Posts: 4977
Joined: Thu Mar 08, 2007 2:55 pm

Re: 401k Portfolio Help

Post by Duckie » Mon Mar 20, 2017 4:54 pm

Dinvestor, welcome to the forum.

Dinvestor wrote:I feel like I am too allocated for how much I have in my account.

To make it simpler you could have:
  • 60% Vanguard Institutional 500 Index Trust .01 -- Large caps, 80% of US stocks
  • 30% Vanguard Inst Total International Stk Mkt Index Trust .06 -- Complete international stocks
  • 10% Vanguard Institutional Total Bond Market Index Trust -- US bonds
Should I focus on large cap stocks until I reach a certain threshold?

Yes. Wait to add the mid/small caps until you have at least $30K in the 401k.

Should I be in international positions?

Yes, for diversification.

Should I change my future contributions and not touch the 7800 or change future contributions and move the 7800 accordingly?

First change future contributions, then change current assets.

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