Asset allocation in Traditional 401k

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Topic Author
scooter101
Posts: 8
Joined: Sun Apr 14, 2019 7:17 am

Asset allocation in Traditional 401k

Post by scooter101 » Mon Nov 11, 2019 10:58 pm

I have appx 220,000 in Triditional 401k with Fidelity.
Asset allocation is 100% Vanguards S&P 500 index fund VINIX. I would like to go 50-50 stocks and bonds. My only choices are:


1. Loomis Sayles Strategic Income Fund Class Y
NEZYX Exp ratio .71

2. PIMCO Total Return Fund Institutional Class
PTTRX Exp ratio .71

3. Vanguard Total Bond Market Index Fund Admiral Shares
VBTLX Exp ratio .05

4. T. Rowe Price Stable Value Common Trust Fund A
Exp ratio .30


By no means am I a bond expert, but could someone please give me some advice on which fund I should use, Retirement should be in about 12 years. Also how I should do it, just switch the percentage over at one time or work my way up over the next year? Any advice would be greatly appreciated.
Last edited by scooter101 on Sat Nov 16, 2019 9:52 am, edited 2 times in total.

lakpr
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Joined: Fri Mar 18, 2011 9:59 am

Re: Asset alocation in Triditional 401k

Post by lakpr » Tue Nov 12, 2019 5:45 am

VBTLX is the slam dunk choice here.

If your retirement is in 12 years, I suspect you are early to mid fifties in age. Going from 100:0 to 50:50 feels a bit too drastic for me, I recommend dialling down 10% per year and rebalance on, say, your birthday. Achieve your final AA ratio over 5 years.

But of course, asset allocation is a deeply personal choice, so if a 90:10 or 80:20 does not let you sleep well at night (SWAN), do go 50:50 in one shot.

retiredjg
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Joined: Thu Jan 10, 2008 12:56 pm

Re: Asset allocation in Triditional 401k

Post by retiredjg » Tue Nov 12, 2019 8:25 am

scooter101 wrote:
Mon Nov 11, 2019 10:58 pm
3. Vanguard Total Bond Market Index Fund Admiral Shares
VBTLX Exp ratio .05
No brainer in my opinion.

Total bond market is low cost and highly diversified. Contains some of most everything.

rkhusky
Posts: 7579
Joined: Thu Aug 18, 2011 8:09 pm

Re: Asset allocation in Triditional 401k

Post by rkhusky » Tue Nov 12, 2019 8:41 am

Vanguard Total Bond. If this is to be a permanent move to a safer portfolio, due to change in circumstances or an epiphany about market risk, make the full move today. There is a certain satisfaction at selling near the top of the current market, even if the market goes up from here (even more satisfaction if the market suddenly drops).

The change in asset allocation shouldn't be about market timing and you should have no plans to increase your stock allocation in the future. If that is the case, I would submit the exchange transaction today.

And welcome to Bogleheads!

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Wiggums
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Joined: Thu Jan 31, 2019 8:02 am

Re: Asset allocation in Triditional 401k

Post by Wiggums » Tue Nov 12, 2019 9:05 am

Welcome to the forum.

VBTLX vanguard total bond is what I use.

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1789
Posts: 309
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Location: OR

Re: Asset allocation in Triditional 401k

Post by 1789 » Tue Nov 12, 2019 11:04 am

Definitely VBTLX
"My conscience wants vegetarianism to win over the world. And my subconscious is yearning for a piece of juicy meat. But what do i want?" (Andrei Tarkovsky)

retired@50
Posts: 650
Joined: Tue Oct 01, 2019 2:36 pm

Re: Asset allocation in Triditional 401k

Post by retired@50 » Tue Nov 12, 2019 6:51 pm

Another vote for VBTLX. The lower expense ratio matters even more in a bond fund.

Regards,

Topic Author
scooter101
Posts: 8
Joined: Sun Apr 14, 2019 7:17 am

Re: Asset allocation in Triditional 401k

Post by scooter101 » Wed Nov 13, 2019 8:33 pm

Thanks for all of the responses everyone, I was thinking Vanguard also. I think what I am going to do this weekend if I have time is to lay out the whole 9 yards (whole portfolio). I know I am going to get a lot of flack about it, that's why I haven't done it sooner. But I think I need some help on what I need to do. I appreciate everyone's comment.

MotoTrojan
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Re: Asset allocation in Triditional 401k

Post by MotoTrojan » Wed Nov 13, 2019 8:38 pm

scooter101 wrote:
Wed Nov 13, 2019 8:33 pm
Thanks for all of the responses everyone, I was thinking Vanguard also. I think what I am going to do this weekend if I have time is to lay out the whole 9 yards (whole portfolio). I know I am going to get a lot of flack about it, that's why I haven't done it sooner. But I think I need some help on what I need to do. I appreciate everyone's comment.
This is a good idea. You should view your entire retirement portfolio as one entity and then place your funds tax-efficiently, rather than holding your asset allocation (50/50) across the board.

Sounds like you are long overdue for decreasing your equity exposure, but you got lucky that you held 100% equity through a raging bull and the markets are now at all time highs. Don't hesitate to make that change if that is the allocation you desire. Well done.

retiredjg
Posts: 38461
Joined: Thu Jan 10, 2008 12:56 pm

Re: Asset allocation in Triditional 401k

Post by retiredjg » Wed Nov 13, 2019 8:45 pm

scooter101 wrote:
Wed Nov 13, 2019 8:33 pm
Thanks for all of the responses everyone, I was thinking Vanguard also. I think what I am going to do this weekend if I have time is to lay out the whole 9 yards (whole portfolio). I know I am going to get a lot of flack about it, that's why I haven't done it sooner. But I think I need some help on what I need to do. I appreciate everyone's comment.
Don't worry about getting flack. If you want to change it, people here can help. :happy

Topic Author
scooter101
Posts: 8
Joined: Sun Apr 14, 2019 7:17 am

Re: Asset allocation in Traditional 401k

Post by scooter101 » Sat Nov 16, 2019 9:56 am

Posted my Portfolio in new thread.

Help with this Portfolio 100% stock.

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ruralavalon
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Location: Illinois

Re: Asset allocation in Traditional 401k

Post by ruralavalon » Sat Nov 16, 2019 1:28 pm

Congratulations on your imminent retirement :D .


scooter101 wrote:
Mon Nov 11, 2019 10:58 pm
I have appx 220,000 in Triditional 401k with Fidelity.
Asset allocation is 100% Vanguards S&P 500 index fund VINIX. I would like to go 50-50 stocks and bonds. My only choices are:


1. Loomis Sayles Strategic Income Fund Class Y
NEZYX Exp ratio .71

2. PIMCO Total Return Fund Institutional Class
PTTRX Exp ratio .71

3. Vanguard Total Bond Market Index Fund Admiral Shares
VBTLX Exp ratio .05

4. T. Rowe Price Stable Value Common Trust Fund A
Exp ratio .30


By no means am I a bond expert, but could someone please give me some advice on which fund I should use, Retirement should be in about 12 years. Also how I should do it, just switch the percentage over at one time or work my way up over the next year? Any advice would be greatly appreciated.
Of those bond fund choices I would use Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) ER 0.05%.

I suggest making the switch all at once. I see no benefit to stringing then process out.
scooter101 wrote:
Wed Nov 13, 2019 8:33 pm
Thanks for all of the responses everyone, I was thinking Vanguard also. I think what I am going to do this weekend if I have time is to lay out the whole 9 yards (whole portfolio). I know I am going to get a lot of flack about it, that's why I haven't done it sooner. But I think I need some help on what I need to do. I appreciate everyone's comment.
That's a good idea.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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