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Pick My 401K Fund(s)
Posted on 5/1/13 at 12:50 pm
Posted on 5/1/13 at 12:50 pm
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.
4
Posted on 5/1/13 at 12:57 pm to CQQ
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...
"Diversification", "Risk Aversion" and "Morningstar"
Theres much more to putting a balanced portfolio together than picking a single high performing fund...
Posted on 5/1/13 at 1:06 pm to wiltznucs
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
ETA - or 1 large cap, 1 mid cap, and 1 small cap
This post was edited on 5/1/13 at 1:18 pm
Posted on 5/1/13 at 1:25 pm to CQQ
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.
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 5/1/13 at 1:26 pm
Posted on 5/1/13 at 1:28 pm to wiltznucs
I gotcha. So maybe I can start off fairly aggressive now (26) and scale back on the risk as I get older?
Posted on 5/1/13 at 1:29 pm to CQQ
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.
Posted on 5/1/13 at 1:36 pm to CQQ
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..
Posted on 5/1/13 at 1:41 pm to wiltznucs
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.
Posted on 5/1/13 at 1:52 pm to CQQ
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 5/1/13 at 2:03 pm
Posted on 5/1/13 at 2:50 pm to wiltznucs
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)
30% - FXSIX (large blend)
30% - FSEVX (mid blend)
20% - PSVIX (small value)
20% - REREX (foreign large blend)
Posted on 5/1/13 at 3:41 pm to CQQ
Fidelity contrafund is a good one.
Posted on 5/1/13 at 3:43 pm to CQQ
Looks solid...
Posted on 5/1/13 at 3:46 pm to CQQ
You're all equity you should allocate a % to PTTRX
Posted on 5/1/13 at 3:53 pm to gatorsimz
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?
Posted on 5/1/13 at 6:25 pm to CQQ
I do the target funds. they are already diversified well and are aggressive now but become less so the closer to the target date.
Posted on 5/1/13 at 11:23 pm to LSU6262
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.
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.
Posted on 5/2/13 at 7:54 am to CQQ
look at fees.
pick low cost.
pick low cost.
Posted on 5/2/13 at 8:42 am to matthew25
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 5/2/13 at 8:43 am
Posted on 5/2/13 at 8:44 am to makersmark1
quote:
pick low cost.
High level shite right here.
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