Help with improving 403(b) allocations

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lesko
Posts: 3
Joined: Thu Apr 20, 2017 7:13 pm

Help with improving 403(b) allocations

Post by lesko » Thu Apr 20, 2017 7:25 pm

** Edited with updated info **

Emphasis is on revising my work 403(b) allocation to be more efficient.

Emergency Funds - 6 months covered ($10,000)
Other Savings - Slowly beginning to stash extra cash (< $10,000) towards goals of new car and/or house in next 5 years, however, these are not urgent needs.
No other taxable/invested savings
Debt - None :)
Tax Filing - Single
Tax Rate - 25% Federal, 5.1% State
State of Residence - MA
Age - 32
Desired Asset Allocation - Open to suggestions on this, given my age and lack of debt, I'm comfortable holding a higher percentage in stocks - 80% stocks, 20% bonds?
Desired International Allocation - ?

Current Retirement Assets

Roth IRA at Fidelity - currently in mid-five figures, maxed out each year.
Contrafund - (FCNTX - ER 0.68%) - 65% of current balance (majority of this I've held since I was about 23 and watched climb since the financial crisis, however, I haven't made a new contribution to this in a few years)
Fidelity Total Market Index (FSTVX - ER 0.045%) - 35% of current balance (where new contributions are going)

Work 403b - currently in low five-figures, contributing 8% of salary with 2% employer match

TICKER, % of Current Balance, Expense Ratio

Mtr West Total Return Bond Fund
MWTRX 15.23% 0.67%
Victory Sycamore Established Value
GETGX 12.80% 1.13%
Dryfus S&P 500 Index
PEOPX 11.82% 0.50%
AM Fds EuroPacific Gr R3
RERCX 9.23% 1.14%
Dryfus International Stock Index Fund
DIISX 9.10% 0.60%
TIAA CREF International EQ Idx Retire
TRIEX 8.07% 0.31%
Colmbia Dividend Income Fund Class R
CDIRX 5.91% 1.27%
Dryfus Small Cap Stock Index
DISSX 4.91% 0.50%
Invesco Real Estate A
IARAX 4.10% 1.25%
AM Fds Cap World Grwth & Income R 3
RWICX 4.01% 1.10%
Frnkln Small Cap Value R
FVFRX 3.93% 1.36%
TIAA CREF Growth And Income Retire
TRGIX 2.96% 0.67%
Dryfus MidCap Index
PESPX 2.95% 0.50%
Templeton Global Bond Fund
TPINX 2.00% 0.96%
Frnkln Growth R
FGSRX 1.98% 1.13%
Colmbia Balanced A
CBLAX 1.00% 1.00%

Other funds I have available in my plan to choose from are...

TICKER, Expense Ratio

Etn Vnc Atlanta Capital Smid Cap R
ERSMX 1.46%%
Frnkln Gold And Precious Metals A
FKRCX 1.11%
Invesco Small Cap Growth Fund Class A
GTSAX 1.20%
Jpm Inflation Managed Bond
JIMAX 0.75%
Lincoln Stable Value Account
LNGPA Current rate of Return 2% (4/1/17 - 6/30/17) - Minimum guaranteed rate - 1%
TIAA CREF Large Cap Growth Retire
TILRX 0.68%

Questions

1. What would be the best way to replicate a three-fund portfolio given the options available within my 403b?

2. Other recommendations re: balancing savings priorities across retirement accounts, longer-term savings goals (house/car, etc.)
Last edited by lesko on Fri Apr 21, 2017 8:25 am, edited 3 times in total.

dbltrbl
Posts: 865
Joined: Thu Mar 01, 2007 11:52 am

Re: Help with improving 403(b) allocations

Post by dbltrbl » Thu Apr 20, 2017 8:49 pm

You do not need 3 or 4 funds. Pick one TIAA IN EQ index 0.31 . If you want to 2 pick Dryfus S & P. In your taxable you can put other funds. I would just use TIAA and then Vanguard TSM outside, IRA etc.

krow36
Posts: 1425
Joined: Fri Jan 30, 2015 6:05 pm
Location: WA

Re: Help with improving 403(b) allocations

Post by krow36 » Fri Apr 21, 2017 12:38 am

lesko wrote: I would ideally like to consolidate this into a few simpler index funds, replicating a Three-Fund Portfolio as much as possible. There are a handful of index funds in here with slightly better expense ratios (i.e., PEOPX, DIISX, DISSX, etc.) - should these be the emphasis of reallocating into 3-4 different funds (roughly 20-30% in each?).
Welcome to the forum! I would use the 4 funds below. Compared to the big collection you now have, your overall fees would be halved! Have you decided on an asset allocation? How old are you? Do you have other accounts for retirement such as IRAs, taxable? It’s best to look at the complete portfolio, not just the 403b account by itself. You will get much better help if you provide your financial information using Laura’s format. You can just use the edit symbol and add it to your original post. You did a very good job of detailing the funds in your 403b. viewtopic.php?f=1&t=6212

Dryfus S&P 500 Index, PEOPX 11.82% 0.50%
http://beta.morningstar.com/funds/XNAS/PEOPX/quote.html

Dryfus Small Cap Stock Index, DISSX 4.91% 0.50%
http://performance.morningstar.com/fund ... on?t=DISSX

TIAA CREF International EQ Idx Retire, TRIEX 8.07% 0.31%
http://beta.morningstar.com/funds/XNAS/TRIEX/quote.html

Metropolitan West Total Return Bond Fund, MWTRX 15.23% 0.67%
http://beta.morningstar.com/

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ruralavalon
Posts: 11839
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: Help with improving 403(b) allocations

Post by ruralavalon » Fri Apr 21, 2017 7:52 am

Welcome to the forum :) .

The funds to consider using in your 401k include:
Dreyfus S & P 500 Index Fund (PEOPX) ER 0.50%
TIAA CREF International Equity Index Fund (TRIRX) ER 0.31%
Metropolitan West Total Return Bond Fund (MWTRX) ER 0.67%

What is the interest rate being paid on the "Lincoln Stable Value Account"? If the interest rate is good enough you could use that as a substitute for a bond fund.

In order to give ideas on how much to invest in each fund in your 401k some additional information is necessary.

What is your age?

Do you have any other accounts? If so what are three other accounts, what are they invested in, and what is the size of each of your accounts?

You can simply add this to your original post using the edit button, so that all of your information is in one place.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

lesko
Posts: 3
Joined: Thu Apr 20, 2017 7:13 pm

Re: Help with improving 403(b) allocations

Post by lesko » Fri Apr 21, 2017 8:09 am

Thanks so much for the initial feedback and guidance. Original post is edited with updated info, including interest rate on Lincoln Stable Value

aristotelian
Posts: 3137
Joined: Wed Jan 11, 2017 8:05 pm

Re: Help with improving 403(b) allocations

Post by aristotelian » Fri Apr 21, 2017 9:03 am

dbltrbl wrote:You do not need 3 or 4 funds. Pick one TIAA IN EQ index 0.31 . If you want to 2 pick Dryfus S & P. In your taxable you can put other funds. I would just use TIAA and then Vanguard TSM outside, IRA etc.
+1. Go with S&P and TIAA International in this account. Look to hold your bond allocation in an IRA (you should open an IRA if you don't have one).

lesko
Posts: 3
Joined: Thu Apr 20, 2017 7:13 pm

Re: Help with improving 403(b) allocations

Post by lesko » Fri Apr 21, 2017 11:52 am

Is there a benefit to holding a bond allocation in an IRA vs. a 403(b)? Or do you think that the choices for bonds would be better outside of what's available in this plan?

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