Small selection of funds in 401K which should I pick?

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Stahlsta210
Posts: 2
Joined: Wed Aug 08, 2018 9:43 pm

Small selection of funds in 401K which should I pick?

Post by Stahlsta210 » Wed Aug 08, 2018 10:59 pm

Hi everyone,

I'm 25 years old and this is my first post in the forums. Excited to be here. I have been learning a lot about early retirement, Financial independence, and investing recently and decide its time for me to take a closer look at my 401k. I think this is the perfect place for me to ask for help. My company offers a handful of funds to choose from and I'd like some input on my current selections and what I can change to make it better. I've adjusted which funds I have contributed to over the past few years but those decisions were not very well thought out. I want to move my current funds and future contributions into the best possible funds to maximize my returns. What do you think I should do?

https://ibb.co/fB0WFp

https://ibb.co/eTt1Fp


Fund names for easy copy and paste: :happy
State Street S&P 500 Index Non-Lending Series Fund - Class N
State Street U.S. Bond Index Non-Lending Series Fund - Class C
State Street Russell Small/Mid Cap Index Non-Lending Series Fund - Class C
FIAM Index Target Date Income Commingled Pool - Class V
FIAM Index Target Date 2055 Commingled Pool - Class V
State Street Global Equity ex U.S. Index Non-Lending Series Fund - Class C
Loomis Sayles Investment Grade Bond Collective Trust - Class D
Invesco Stable Asset Fund - ADPZ Class
American Funds EuroPacific Growth Fund - Class R6
T. Rowe Price Equity Income Trust - Class A
Harbor Capital Appreciation Fund - Institutional Class
Eaton Vance Atlanta Capital SMID Cap Fund - Class R6
PIMCO Inflation Response MultiAsset Fund - Institutional Class

Silk McCue
Posts: 1127
Joined: Thu Feb 25, 2016 7:11 pm

Re: Small selection of funds in 401K which should I pick?

Post by Silk McCue » Thu Aug 09, 2018 7:36 am

Welcome to Bogleheads.

Were I in your shoes I would simply buy a Target date fund with with the asset allocation that you are comfortable with. The holdings are broad and diverse and the expense ratio is very good. The 2055 is 90/10. At your age that is fine as long as you can stick with it knowing that you have many years before retirement.

Cheers

Flyer24
Posts: 286
Joined: Sun Apr 08, 2018 4:21 pm

Re: Small selection of funds in 401K which should I pick?

Post by Flyer24 » Thu Aug 09, 2018 7:41 am

I agree. Go with the target date fund 100% allocation. It has a low expense ratio too.

BuckyBadger
Posts: 849
Joined: Tue Nov 01, 2011 11:28 am

Re: Small selection of funds in 401K which should I pick?

Post by BuckyBadger » Thu Aug 09, 2018 8:24 am

I would use just the target date.

Are the yellow highlights in the second link what you're planning on doing? I'd scrap that and just do the low expense target date. In a few years when you're got more money and more accounts you can break it into a nice 3-fund portfolio, but at this point I think by far your wisest choice is to put it all the the target date and not make it any more complicated.

Stahlsta210
Posts: 2
Joined: Wed Aug 08, 2018 9:43 pm

Re: Small selection of funds in 401K which should I pick?

Post by Stahlsta210 » Thu Aug 09, 2018 1:26 pm

Hi everyone,

Thanks for the responses and the welcoming. It seems like there is a general consensus. However, I am inquire about the harbor capital fund. it says it has a 29% over the past 12 months and 10% YTD. The target fund has a YTD return of less than 1%. I see that the fees are much higher for harbor capital but surely it can be justified with this type of return.

To clarify, the first picture shows where my money current is. The second picture is showing what my future allocations (highlighted in yellow) are set to right now - along with the performance metrics for all fund currently available.

Thanks everyone!!! :D

Grt2bOutdoors
Posts: 19173
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: Small selection of funds in 401K which should I pick?

Post by Grt2bOutdoors » Thu Aug 09, 2018 1:38 pm

The harbor fund is a large cap growth fund. Large growth has been outperforming other categories but that may not be a given going forwards. The target date fund is diversified amongst asset classes, guaranteeing you some portion of your fund will always participate In market returns. Say for example, large value outperforms large growth, how do you think the harbor fund will perform?
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

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