401k Portfolio Help

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Topic Author
bogledesk
Posts: 32
Joined: Mon Jun 19, 2017 11:55 pm

401k Portfolio Help

Post by bogledesk »

Long-time Bogleheads forum reader, first time poster. Thanks in advance for your patience.

I am currently in the process of simplifying and improving my investment portfolio and would appreciate any advice/guidance/insight on the investments available in my employer's 401k plan (listed below).

I would appreciate your recommendation on which of these funds you would use to create a portfolio consisting of 60% stocks/40% bonds. Ideally, I would like my 401k portfolio to closely resemble the Vanguard LifeStrategy Moderate Growth Fund (VSMGX).

Short-Term Fixed Income:
Morley Capital Management Principal Stable Value Inst Fund (ER 0.54%)


Fixed Income:
Mellon Capital Mgmt Bond Market Index Inst Fund (PNIIX) (ER 0.28%)
PIMCO PIMCO Global Bond (Unhedged) Institutional Fund   (PIGLX) (ER 0.57%)
PIMCO PIMCO Total Return Instl Fund (PTTRX) (ER 0.47%)


Balanced/Asset Allocation:
Principal LifeTime Hybrid Income CIT (ER 0.37%)
Principal LifeTime Hybrid 2010 CIT (ER 0.38%)
Principal LifeTime Hybrid 2015 CIT (ER 0.36%)
Principal LifeTime Hybrid 2020 CIT (ER 0.35%)
Principal LifeTime Hybrid 2025 CIT (ER 0.35%)
Principal LifeTime Hybrid 2030 CIT (ER 0.35%)
Principal LifeTime Hybrid 2035 CIT (ER 0.35%)
Principal LifeTime Hybrid 2040 CIT (ER 0.36%)
Principal LifeTime Hybrid 2045 CIT (ER 0.36%)
Principal LifeTime Hybrid 2050 CIT (ER 0.37%)
Principal LifeTime Hybrid 2055 CIT (ER 0.38%)
Principal LifeTime Hybrid 2060 CIT (ER 0.38%)


Large U.S. Equity:
T. Rowe Price/Brown Advisory LargeCap Growth I Inst Fund (PLGIX) (ER 0.64%)
Vanguard Group Vanguard Institutional Index Institutional Fund (VINIX) (ER 0.04%)
Vanguard Group Vanguard Windsor II Adm Fund (VWNAX) (ER 0.25%)


Small/Mid U.S. Equity:
Dimensional Fund Advisors DFA US Small Cap I Fund (DFSTX) (ER 0.37%)
Principal Global Investors MidCap S&P 400 Index Inst Fund (MPSIX) (ER 0.2%)
Principal Global Investors SmallCap S&P 600 Index Inst Fund (PSSIX) (ER 0.21%)
Principal Real Estate Inv Real Estate Securities Inst Fund (PIREX) (ER 0.88%)


International Equity:
Hartford Mutual Funds Hartford International Opportunities Y Fund (HAOYX) (ER 0.79%)
Principal Global Investors International Equity Index Inst Fund (PIDIX) (ER 0.35%)
T. Rowe Price Associates, Inc. T. Rowe Price Institutional Markets Equity Fund (IEMFX) (ER 1.1%)
User avatar
bottlecap
Posts: 6906
Joined: Tue Mar 06, 2007 10:21 pm
Location: Tennessee

Re: 401k Portfolio Help

Post by bottlecap »

I have looked up those funds, but the balanced/asset allocation funds aren't to expensive.

So either than or a combo of VINX, MPSIX, PSSIX, and PIDIX.

Good luck,

JT
User avatar
Duckie
Posts: 9767
Joined: Thu Mar 08, 2007 1:55 pm

Re: 401k Portfolio Help

Post by Duckie »

bogledesk, welcome to the forum.
bogledesk wrote:I would appreciate your recommendation on which of these funds you would use to create a portfolio consisting of 60% stocks/40% bonds. Ideally, I would like my 401k portfolio to closely resemble the Vanguard LifeStrategy Moderate Growth Fund (VSMGX).
VSMGX has an AA of 60% stocks, 40% bonds, with 40% of stocks and 20% of bonds in international. Skip the international bonds and consider fewer international stocks. The best options in your plan are:
  • Vanguard Institutional Index (VINIX) (0.04%) -- Large caps, 80% of US stocks
  • Principal MidCap S&P 400 Index (MPSIX) (0.20%) -- Mid caps, 6% of US stocks
  • Principal SmallCap S&P 600 Index (PSSIX) (0.21%) -- Small caps, 14% of US stocks
  • Principal International Equity Index (PIDIX) (0.35%) -- Developed markets, 75% of international stocks
  • Mellon Capital Mgmt Bond Market Index (PNIIX) (0.28%) -- US bonds
Or you could go with one of the LifeTime funds. Since you pick a target-date fund by the AA inside, not the date in the title, either 2025 with an AA of 65/35 or 2020 with an AA of 56/44 would be somewhat close. Of course, this assumes you have no other retirement assets, because that desired 60/40 AA should be spread across all accounts.
Topic Author
bogledesk
Posts: 32
Joined: Mon Jun 19, 2017 11:55 pm

Re: 401k Portfolio Help

Post by bogledesk »

Thank you all for your help with this. Much appreciated.
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