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tdavi48
LSU Fan
NA
Member since Mar 2012
606 posts

401K Question

I started my 401K back in January and I max it out up to what my company matches. I recently just looked at it to see what kind of interest I gained and its showing only 3.33% interest. I find this to be pretty low. Our work has a guy who deals with where we put our money. My question is, what is a good interest % to hope to gain through 401k?


Layabout
UNO Fan
Baton Rouge
Member since Jul 2011
8552 posts
Online

re: 401K Question
I'm assuming you're talking about your rate of return. The Dow is up 20% since the first of the year and if you're only getting a 3% return during that period something is very, very wrong. Unless you are sixty years old and very risk-averse, you need to review your portfolio and consider putting more into stocks. How much more depends on your age and how many years you have to retirement. You may be best served by getting into a target fund for your estimated year of retirement. The asset allocation will then be done automatically each year by the fund manager.


austiger
LSU Fan
Austin
Member since Apr 2012
191 posts

re: 401K Question
It isn't that far off however...

Assume the money is say 50/50 in stocks and bonds.

If money has been put in all year, it isn't all at 20% gain. Weighted across the year it would be closer to 10% if it were all stocks... and 5% if it were 50/50 stocks/bonds or less, considering bonds have probably dropped in value some lately.

Agree the allocation is off.


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tdavi48
LSU Fan
NA
Member since Mar 2012
606 posts

re: 401K Question
I'm only 25, so I'm able to take more risk. But when looking at the options of where I can move my money too, I'm not really sure which ones are the best options.


Layabout
UNO Fan
Baton Rouge
Member since Jul 2011
8552 posts
Online

re: 401K Question
quote:

I'm only 25, so I'm able to take more risk. But when looking at the options of where I can move my money too, I'm not really sure which ones are the best options.


That's why the target fund may be a good choice for you. Initially, at your age, the fund assets are almost entirely in stocks. As you get older and your tolerance for risk decreases, the assets are moved into more conservative investments. Click on the 2055 target fund to get some idea of how the allocation changes.

LINK


tdavi48
LSU Fan
NA
Member since Mar 2012
606 posts

re: 401K Question
That one looks real good, but it doesn't show as one of the options I can pick from. With Vanguard is that something I need to set up completely separate. Is that just a different investment plan, Roth Ira.... sorry just not sure about how some of this works.


ell_13
USA Fan
Member since Apr 2013
34671 posts
Online

re: 401K Question
quote:

sorry just not sure about how some of this works.


Do you have an HR department you can talk to? Aside from listing your investment options here, you can talk to someone who can tell you which funds are mostly stocks whether it be an S&P target fund, international fund, etc.


Layabout
UNO Fan
Baton Rouge
Member since Jul 2011
8552 posts
Online

re: 401K Question
If your fund manager doesn't offer target investments you can still select investments that conform to the target guidelines. Note that for the next 15-20 years, 90% of your investments are in stocks, 63% U.S. and 27% international. Your plan should have offerings in these categories that would allow you to make a similar allocation.

If you have the option of a Roth IRA I would select that. Your contributions will be after tax but forty years of appreciation can be withdrawn tax free. That's a hell of a deal.


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tdavi48
LSU Fan
NA
Member since Mar 2012
606 posts

re: 401K Question
quote:

Do you have an HR department you can talk to? Aside from listing your investment options here, you can talk to someone who can tell you which funds are mostly stocks whether it be an S&P target fund, international fund, etc.


I was thinking about posting the investment options here, just not sure about how to upload them...


ell_13
USA Fan
Member since Apr 2013
34671 posts
Online

re: 401K Question
quote:

just not sure about how to upload them


If you have the symbols, type them out.


tdavi48
LSU Fan
NA
Member since Mar 2012
606 posts

re: 401K Question

» AdvOne Clermont N

» AdvOne Liahona N

» AdvOne Sel Alloc N

BlkRk Glbl Alloc Inv A

NW Inv Dest Aggr Svc

NW Inv Dest Cnsrv Svc

NW Inv Dest Mod Aggr Svc

NW Inv Dest Mod Cnsrv Svc

NW Inv Dest Mod Svc

Okmrk Eq Inc II


Bonds
» AdvOne Flex Inc N

GdmnScs Govt Inc A

PIMCO Ttl Rtn A

PNC Govt Mrtg A

Payden GNMA Adv

Prncpl Hi Yld A

TCW Ttl Rtn Bd N

INDEX: Lehman Bros Agg Bd
NW Mny Mkt Inst


International Stocks
AmFds Cap Wld Gr Inc R3

Harbor Intl Inv

INDEX: EAFE
Large-Cap Stocks
» AdvOne Amerigo N

AmFds Fdmntl Inv R3

JPM Val Advtg A

Jns Twnty T

Mgrs Ycktmn Focs Svc

NW S P 500 Indx Svc

WFA Prmr Lg Co Gr A

Mid-Cap Stocks
Col MdCap Val Oppr A

Drey Oppr MdCap Val A

Fnkln SmMdCap Gr A

JnHnck Dscpld Val MdCap A

Prudntl Jnisn MdCap Gr A


Short-Term Bonds
GdmnScs Shrt Dur Govt A

Vic Fd For Inc A


Small-Cap Stocks
Buf SmCap

Heartland Val Pls Inv

Invsco SmCap Val A

JPM SmCap Eq A


Specialty
» AdvOne Enhcd Inc N

Invsco RealEst A

NeuBer RealEst Inst

Opp Intl Bd A

VanEck Intl Inv Gold A









Layabout
UNO Fan
Baton Rouge
Member since Jul 2011
8552 posts
Online

re: 401K Question
That's really a pretty diversified list. The Nationwide Destination Funds, while not exactly target funds, come pretty close. You can get details HERE.

I hold several of the remaining funds in my portfolio and have enjoyed good returns from them: RWIGX, JAVLX, and IARIX.



tdavi48
LSU Fan
NA
Member since Mar 2012
606 posts

re: 401K Question
Yea but Im not really sure which ones to choose from. The ones with the arrows next to them are the ones I currently have them in.


Layabout
UNO Fan
Baton Rouge
Member since Jul 2011
8552 posts
Online

re: 401K Question
One problem I see is that you are heavily invested in Adviser One funds, which are funds of funds so it's almost impossible to know the true underlying mix of investments.

You need to do some homework on all of the offered funds. Look for the historic and current rates of return and find some that are ahead of the pack. Start moving your money into these funds on a regular basis, say monthly, until you reach your desired allocation.

Find the mutual fund symbol for each of these funds (google is your friend) and then use a tool like google finance to look at the funds--their rates of return over time and the actual underlying stocks.


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mctiger1985
LSU Fan
Baton Rouge
Member since Oct 2009
1820 posts

re: 401K Question
My rate of return for the year so far is 14%
This post was edited on 8/9 at 6:19 pm


LSUSUPERSTAR
LSU Fan
TX
Member since Jan 2005
10753 posts

re: 401K Question
My rate of return is 16%. I think I could have done better, but that is great. This is for my 401k.


ell_13
USA Fan
Member since Apr 2013
34671 posts
Online

re: 401K Question
I'm at 15.5% between my 401k, SO's 401k, and our Roth IRAs. That's with about 85% stock, 10% silver, and 5% bonds. It's obvious what is dragging, but I bought the silver relatively cheap and the bonds are getting their arse kicked this year.


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