Pick My 401K Fund(s) | TigerDroppings.com

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CQQ
USA Fan
LC
Member since Feb 2006
11192 posts

Pick My 401K Fund(s)


Can someone check out these options and tell me which funds to choose? These target funds are not the way to go, correct? I'm no expert but it looks like #8, FSEVX, market index fund is the way to go.









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wiltznucs
South Florida Fan
Apollo Beach, FL
Member since Sep 2005
7592 posts

re: Pick My 401K Fund(s)


Three key terms for you to check out before proceeding...

"Diversification", "Risk Aversion" and "Morningstar"

Theres much more to putting a balanced portfolio together than picking a single high performing fund...






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CQQ
USA Fan
LC
Member since Feb 2006
11192 posts

re: Pick My 401K Fund(s)


I'm fairly familiar with those terms. Do you suggest spreading between multiple high performing funds? I know it may be dumb but I'd like for someone to look at these and tell me what they would choose and, more importantly, why.

ETA - or 1 large cap, 1 mid cap, and 1 small cap



This post was edited on 5/1 at 1:18 pm


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wiltznucs
South Florida Fan
Apollo Beach, FL
Member since Sep 2005
7592 posts

re: Pick My 401K Fund(s)


Return is always tied to risk; those stocks, bonds, etc. that demonstrate the greatest returns typically also have the highest level of risk.

Your individual level of risk aversion and your age should determine your picks. If you dont mind gambling then dump it all in a single highly volatile fund knowing that it will show big swings in losses and gains.

If the thought of losing huge sums in an instant keeps you up at night then go with something less aggressive.

The benefit of diversification(some of which is taken care of for you in a mutual fund) is that you balance out some of the ups and downs by investing in multiple areas of the market. Morningstar is a great tool to help you get started. Simply enter the Fund Code FSEVX, etc and you'll get a good run down of its performance.



This post was edited on 5/1 at 1:26 pm


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CQQ
USA Fan
LC
Member since Feb 2006
11192 posts

re: Pick My 401K Fund(s)


I gotcha. So maybe I can start off fairly aggressive now (26) and scale back on the risk as I get older?





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Teddy Ruxpin
LSU Fan
New Orleans, LA
Member since Oct 2006
18082 posts

re: Pick My 401K Fund(s)


quote:

I gotcha. So maybe I can start off fairly aggressive now (26) and scale back on the risk as I get older?


That's usually the idea.






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wiltznucs
South Florida Fan
Apollo Beach, FL
Member since Sep 2005
7592 posts

re: Pick My 401K Fund(s)


quote:

I gotcha. So maybe I can start off fairly aggressive now (26) and scale back on the risk as I get older?


Bingo..

Enter them into Morningstar understanding that a funds future performance is not necessarily predicted by its past performance. Morningstar gives a star rating as well which shows how the fund stacks up against competing funds of the same type. Given your age you have plenty of time before you retire and can weather some ups and downs. Focus on a good mix of large, mids, small and international funds. Putting money in fixed income or bonds really isnt getting the most bang for your buck in the current market. A balanced portfolio has some debt instruments (bonds,etc) in it so putting some money in them is no real harm but equities (stocks) are outperforming them right now.

Good luck..






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CQQ
USA Fan
LC
Member since Feb 2006
11192 posts

re: Pick My 401K Fund(s)


quote:

Focus on a good mix of large, mids, small and international funds.


With this route, what % of the pie should go to each type of fund? Everything I'm reading says medium and small cap funds are outperforming large cap.






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wiltznucs
South Florida Fan
Apollo Beach, FL
Member since Sep 2005
7592 posts

re: Pick My 401K Fund(s)


quote:

With this route, what % of the pie should go to each type of fund? Everything I'm reading says medium and small cap funds are outperforming large cap.


Thats really up to you, history shows the market makes cyclic changes over time. Whereas smalls and mids could be doing great now, the large caps and international funds may be en vogue next year. By having some of each of them you reduce your risk exposure overall.

Personally, I'm a few years older than you and my investment choices are different also. I'm about 30% Large, 25% Mid, 20% Small, 20% International and the remaining is in intermediate term bonds. There are many here that would have fewer fund choices in their portfolio and some I'm sure that have more. The amount contributed to each will certainly vary.

After a quick look at your list the RERFX and FSEVX are in my own portfolio. You've got some good ones to choose from...



This post was edited on 5/1 at 2:03 pm


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CQQ
USA Fan
LC
Member since Feb 2006
11192 posts

re: Pick My 401K Fund(s)


Well I've adjusted it. Any input or opinions are appreciated.

30% - FXSIX (large blend)
30% - FSEVX (mid blend)
20% - PSVIX (small value)
20% - REREX (foreign large blend)






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gatorsimz
Florida Fan
cafe risque
Member since Feb 2009
5346 posts

re: Pick My 401K Fund(s)


Fidelity contrafund is a good one.





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wiltznucs
South Florida Fan
Apollo Beach, FL
Member since Sep 2005
7592 posts

re: Pick My 401K Fund(s)


Looks solid...





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gatorsimz
Florida Fan
cafe risque
Member since Feb 2009
5346 posts

re: Pick My 401K Fund(s)


You're all equity you should allocate a % to PTTRX





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CQQ
USA Fan
LC
Member since Feb 2006
11192 posts

re: Pick My 401K Fund(s)


quote:

You're all equity you should allocate a % to PTTRX


Can you provide me details on what this is exactly? What % would you recommend?






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LSU6262
LSU Fan
Member since Jun 2008
2296 posts

re: Pick My 401K Fund(s)


I do the target funds. they are already diversified well and are aggressive now but become less so the closer to the target date.





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matthew25
Ole Miss Fan
Member since Jun 2012
3359 posts

re: Pick My 401K Fund(s)


OP - not bad for just learning. You picked 2 4-star and 2 5-star. No risk above "average" and returns were all greater than the risk.

My 2 comments are: the Foreign MF lost 13.6% just two years ago (REREX)- you are young (26) and can weather the storms; and consider replacing the FXSIX with the Contrafund (FCNTX) as mentioned above. Do the research and decide for yourself.






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makersmark1
Auburn Fan
Member since Oct 2011
1414 posts

re: Pick My 401K Fund(s)


look at fees.

pick low cost.







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Janky
LSU Fan
Team Primo
Member since Jun 2011
7253 posts

re: Pick My 401K Fund(s)


quote:

My 2 comments are: the Foreign MF lost 13.6%


Probably due to Europe. I think any sound portfolio should have exposure to global assets. Remeber, yesterday's losers are today's winneers.



This post was edited on 5/2 at 8:43 am


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Janky
LSU Fan
Team Primo
Member since Jun 2011
7253 posts

re: Pick My 401K Fund(s)


quote:

pick low cost.


High level shite right here.






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