my 401k got fucked up yesterday

[goin on 4T]

I should have just kept my mouth shut, or looked up the funds before being a smart/dumb-ass. If 5 of the those are LC funds that is out of proportion... A portfolio should have 1-2 large cap value funds, 1-2 large cap growth funds, 1 mid cap value fund, 1 mid cap growth fund, 1 small cap value fund, 1 small cap growth fund.
Then you should have 1 large cap internation fund and 1 small cap international fund (neither should be global)
Then you should have a long term bond fund and a short term bond fund. Might even through in a high yeild fund for yeild. The proportion of monies that you have in each fund should be detirmend by your risk tollerance and time in the market until you retire. When your 401k gets bigger like over 50k then add some specialty funds... If you want to get into proportions of moneys in each fund that is fine I will do it but just for brevity I thought I would stop here.
Good Job 75th!

 

[Lestat]

True, but he's got 5 funds with 4 of them being primarily large cap. To the best of my recollection none of those funds have any significant blend.

Here is my breakdown

AF CAP WORLD G&I R5 12%
AF EUROPAC GROWTH 1%
FID CONTRAFUND 41%
FIDELITY LOW PR STK 12%
VANG INST INDEX PLUS 34%

 

[Lestat]

I should have just kept my mouth shut, or looked up the funds before being a smart/dumb-ass. If 5 of the those are LC funds that is out of proportion... A portfolio should have 1-2 large cap value funds, 1-2 large cap growth funds, 1 mid cap value fund, 1 mid cap growth fund, 1 small cap value fund, 1 small cap growth fund.
Then you should have 1 large cap internation fund and 1 small cap international fund (neither should be global)
Then you should have a long term bond fund and a short term bond fund. Might even through in a high yeild fund for yeild. The proportion of monies that you have in each fund should be detirmend by your risk tollerance and time in the market until you retire. When your 401k gets bigger like over 50k then add some specialty funds... If you want to get into proportions of moneys in each fund that is fine I will do it but just for brevity I thought I would stop here.
Good Job 75th!

great analysis bro!

I am 31 now, so I have a lot of risk tolerance. No bonds for now, I want growth and income.

 

[goin on 4T]

You should still have 15% in bonds don't add now, because when interest rates go up and they will in the next few years the price of the bonds will drop and you will have a negative position but when the 10 year treasury is back up to the 5-6% range you should start to add to that position. You won't win every time the objective is not to loose big... If you had some of your money is small cap stocks thay have had a good run because their cost of debt is so low and their return on capital higher than average. Glad you are starting early! Who is your 401k management company? Paychex? or wallstreet co?

 

[75th]

great analysis bro!

I am 31 now, so I have a lot of risk tolerance. No bonds for now, I want growth and income.

Historically a 90/10 split yields a higher 10 year rate of return than 100% equity. Look into a small amount of high yield and intermediate corporate debt. Limiting your downside capture is beneficial even for someone as young as you or I.

IMO your allocation is way too lopsided. If you want to send me your options I would be more than happy to let you know what I personally would do.

 

[Lestat]

Fidelity is who manages my 401k.

75th, thank man, that's good bro material! I have a lot of options and haven't looked at them for a while.

 

[75th]

I should have just kept my mouth shut, or looked up the funds before being a smart/dumb-ass. If 5 of the those are LC funds that is out of proportion... A portfolio should have 1-2 large cap value funds, 1-2 large cap growth funds, 1 mid cap value fund, 1 mid cap growth fund, 1 small cap value fund, 1 small cap growth fund.
Then you should have 1 large cap internation fund and 1 small cap international fund (neither should be global)
Then you should have a long term bond fund and a short term bond fund. Might even through in a high yeild fund for yeild. The proportion of monies that you have in each fund should be detirmend by your risk tollerance and time in the market until you retire. When your 401k gets bigger like over 50k then add some specialty funds... If you want to get into proportions of moneys in each fund that is fine I will do it but just for brevity I thought I would stop here.
Good Job 75th!

Thanks. As scary as it sounds my job is creating and managing portfolios all day.

 

[Lestat]

Thanks. As scary as it sounds my job is creating and managing portfolios all day.

I've never worked with anyone, i figured out what i have today based on my own readings and research.

 

[goin on 4T]

Thanks. As scary as it sounds my job is creating and managing portfolios all day.

As was mine until I decided to start a company and become the CFO...
Good luck!

 

[Lestat]

lotsa good bros in here