401k Allocation

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Topic Author
jrfuerst
Posts: 7
Joined: Wed Mar 06, 2019 2:11 pm

401k Allocation

Post by jrfuerst » Wed May 15, 2019 2:23 pm

I have been investing in my employer's 401k for a little over a year now. Sadly, I have reallocated my portfolio probably once a month on average. Everytime I read up on something that looks better than what I read in the past, I change my allocation. I've now started to consider alpha and sharpe ratios when determining my allocations. I've also read about 200-day SMA for buy/sell, 'sell in May and go away' etc. So many different thoughts.

Presently I contribute $187.50 per month, and my employer matches 100% of the first 10% of my salary, as long as I contribute 5%, which I am. So with my $187.50, my employer puts in $375, for a combined $562.50. My employers 401k is with TIAA-Cref. In addition, I put in $50 a month to a voluntary retirement savings plan. I have the option who I can do this with. There is no employer match for the VRSP. Currently I am doing the $50/month with Fidelity as I feel it gives me more investment options for specific sectors that TIAA-Cref does not offer. Other investment companies for the VRSP are Ameriprise Financial, Ameritas, Voya Reliastar and Pacific Life.

Sadly, I have started very late in my investments. For years when I was previously employed I did not do any investing and missed out on my employer match with other companies. I am 38, and I plan on retiring at 68, or earlier if I can invest aggressively and have great returns. After my umpteenth time of re-allocating, this is my current portfolio makeup with TIAA:

Guaranteed - 8.46%
Equities - 73%
Real Estate - 0%
Fixed Income - 18.54%

TIAA Traditional - $693.75. (Presently this gets a guaranteed 3.75% annual return)
TIAA-CREF International Equity Index Fund - Institutional Class - $128.92
TIAA-CREF Large-Cap Growth Index Fund - Institutional Class - $1,000.36
TIAA-CREF Real Estate Securities Fund - Institutional Class - $736.14
TIAA-CREF Emerging Markets Equity Index Fund - Institutional Class - $617.66
Vanguard Small-Cap Growth Index Fund Institutional - $3,503.89.
TIAA-CREF High-Yield Fund - Institutional Class - $1,520.80

As for future investments, my allocation is as follows:
TIAA-CREF Emerging Markets Equity Index Fund - Institutional Class - 5%
TIAA-CREF International Equity Index Fund - Institutional Class - 5%
TIAA-CREF Large-Cap Growth Index Fund - Institutional Class - 30%
TIAA-CREF Real Estate Securities Fund - Institutional Class - 10%
Vanguard Small-Cap Growth Index Fund Institutional Class - 30%
TIAA-CREF High-Yield Fund - Institutional Class - 20%

For my Fidelity $50/month extra, I was initially doing 50% in Fidelity Select Semiconductors Portfolio and 50% in Fidelity Select Software and IT Services Portfolio. But, admittedly, I got scared and put 100% of it in Fidelity Long-Term Treasury Bond Index Fund when the stock dropped last Friday.

I know I need to allocate and leave it alone, for probably at least 6 months at a time. I know since I am 30 years away from retirement I want aggressive to very aggressive allocation, while still having some kind of fixed income in case the market crashes. I also know I need to stop going to marketwatch.com and other sites and look at how the markets are doing and what's coming ahead.

With that being said, is the 3-fund Bogle portfolio the best route? Should I diversify more? Are my percentages fine? How should I allocate my TIAA-CREF vs my Fidelity VRSP?

My goal for the VRSP is to increase how much I contribute each year as I get raises - half of the raise I will keep, the other half I will put in the Fidelity VRSP. Also, whenever I get my darned student loan paid off (I'll probably die before that thing is paid off), I'll then re-invest those payments into the Fidelity, or possibly even another VRSP.

Thank you in advance. Again, I am a n00b at stocks, but I am reading up on them. I admit I am still confused by a whole bunch of things, but I know a lot more now than I did last year, at least in terms of terminology.

Topic Author
jrfuerst
Posts: 7
Joined: Wed Mar 06, 2019 2:11 pm

Re: 401k Allocation

Post by jrfuerst » Wed May 15, 2019 3:16 pm

I am adding a list of all the funds available for the TIAA-CREF and Fidelity.

TIAA - https://qiu.tiaa.markitondemand.com/dow ... lan=100275
The Fidelity I can't find a public link of the Funds available, but there are 188 in that plan.

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