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getrichdietrying (79.34)

No Choice Mutual Funds, please help,

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May 04, 2009 – Comments (4)

401k is only giving option of only these 20 mutual funds. Young enough to be 100% equity..Here are my choices:

Large US Equity=35%

Large Value       =Blackrock Equity Dividend I Fund(MADVX) expense of .76 (thinking allocate 7.5%)

Large Blend       =Jennison 20/20 Focus Z Fund (PTWZX) expense of .92 (thinking allocate 0%).

Large Blend       =Principal Global Investors-LargeCap S&P Index Seperate Account2,4,16,A(PLFIX) expense of .06 (thinking allocate20%)

Large Growth     =American Funds Growth Fund if America R4F Fund(RGAEX) expense of .64 (thinking allocate7.5%)

MID CAP US Equity=25%

Mid Cap Value  =Columbia MidCap Value Z Fund(NAMAX) expense of .87 (thinking allocate5%)

Mid Cap Blend  =AIM MID CAP Core Equity A Fund, expense of 1.24 (thinking allocate0%)

MID CAP Blend =Pricippal MidCap S&P400 Index Seperate Account1,2,6,17,A(PMFJX) expense of .06 (thinking allocate15%)

MID CAP GROWTH =BlackRock US Opportunuties Institutional Fund(BMCIX) expense of 1.43 (thinking allocate 5%)

SMALL CAP=25%

Small Value     =Allianz NFJ Small-Cap Value Administrative Fund(PVADX) expense of 1.07 (thinking allocate 5%)

Small Blend   =JP Morgan Small Cap Equity A Fund, expense of 1.40 (thinking allocate0%)

Small Blend  = Principal SmallCap S&P600 index Seperate Account(PSSIX) expense of .06 (thinking allocate15%)

Small Growth  =Hartford Small Company HLS IB Fund, expense of .95 and (thinking allocate 5%)

INTERNATIONAL EQUITY =15%

Diversified Emerging Markets    =RS Emerging Markets A Fund(GBEMX) expense of 1.59 (thinking allocate2%

Foreign Large Value     =Allianz NFJ International Value A Fund(AFJAX) expense of 1.46 (thinking allocate2%)

Foreign Large Blend    = JP Morgan International Equity Index A Fund, expense of 1.28 (thinking allocate 0%)

Foreign Large Blend  = Principal Diversified International Inst Fund(PIIIX) expense of .91 (thinking allocate2%)

Foreign Large Growth  =Oppenheimer International Growth Y Fund(OIGYX) expense of .74 (thinking allocate 5%)

 

Foreign Small/Mid Growth  =Blackrock International Opportunities Institutional Fund(BISIX) expense of 1.24 (thinking allocate 2%)

 

WORLD STOCK     = Franklin Templeton Investments Mutual Discovery A Fund; Expense of 1.32 (thinking allocate 2%

world stock = Invesco AIM Global SMall & MidCap Growth A Fund; expnse of 1.43 (thinking allocate0%)

 

Am I allocating Correctly? please advise what you would do. Thanks.

 

4 Comments – Post Your Own

#1) On May 04, 2009 at 6:39 PM, BigFatBEAR (30.12) wrote:

I'm 26, and just recently enrolled in my first 401k plan ever, so take my advice with a huge grain of salt. I decided to contribute 60% of my earnings to my 401k - aggressive savings now, with the hope that it'll have an impact later on.

My allocation was 100% equities (you'd have to be stupid or very old to be putting money into much else right now). Corporate and other high-yield bonds may be a different story, but most bond funds are risky and low-return these days.

I did 85% into a Vanguard Large Cap Blend with an expense ratio of .06, mostly because I'm bullish on US stocks long-term, and the expense ratio was WAY below any of my other options.

The remaining 15% I put into a Fidelity Diversified International Stocks fund, with an expense ratio north of 1%. I figure there will be some decent gain in other markets to offset the higher cost, and I want some outside exposure.

Keep in mind that my roth IRA is my PRIMARY investing vehicle, and in that account my index of choice is Vanguard's very solid VTI. The 401k will help me squirrel away a bit, and also lower my income, which will help force me to not-spend.

Something I came across today that might help you is FINRA's mutual fund comparison tool: check it out here.

Hope this helps!

-BFB

PS. As my allocation shows, I wouldn't necessarily diversify as much as you have. However, I generally agree with your thoughts of "(thinking of X%)"...   stay away from the high-expense ratio ones! Thanks for posting.

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#2) On May 04, 2009 at 7:27 PM, ReaganD (98.30) wrote:

by diversifying into that many mutual funds, you are almost guaranteeing that you will perform as well as the index minus the expense ratios (even though those are pretty low).  I would either put it all in the index and leave it there or put half in the index and use the rest to pick the fund with the manager you expect to perform the best

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#3) On May 04, 2009 at 7:28 PM, ReaganD (98.30) wrote:

by diversifying into that many mutual funds, you are almost guaranteeing that you will perform as well as the index minus the expense ratios (even though those are pretty low).  I would either put it all in the index and leave it there or put half in the index and use the rest to pick the fund with the manager you expect to perform the best

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#4) On May 05, 2009 at 12:33 PM, getrichdietrying (79.34) wrote:

thanks for posts and recomendations, this does help me alot.

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