warrior327
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Cash: $ 2.80
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Joined: 16 May 2011
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Currently I am enrolled in a 401k through my employer. That being said I am not real fond of the lifestyle options that you can pick for your investments, because of my age being 27 I don't like to get to much into bonds at this point.
The funds are as stated. Currently I am sitting in aggressive that wellsfargo offers.
Wells Fargo Stable Return Fund N4
Metropolitan West Intermediate Bond M
Eaton Vance Lrge Cap Core/A
Ivy Mid Cap Growth Y
Loomis Sayles Small Cap Growth Instl
RidgeWorth Large Cap Value Equity I
William Blair Small Cap Value N
Thornburg International Value (R5)
Based on these funds I am trying to figure out how to invest for long term wealth building. To give you an idea at what I was looking at doing it would be something like this.
Mid Cap Fund - 25%
Large Cap Fund - 30% Eaton Vance Lrge Cap & Ridge Worth Lrge Cap
Small Cap Fund - 25% William Blair Small & Loomis Sayles Small
International Fund - 20% Thornburg International Value
Thoughts and ideas please. Expense ratios seems kinda high to me but that is our options for now.
thanks.
thoughts and comments would be appreciated.
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Wed Jan 18, 2012 6:22 pm |
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payment proof
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I'd really recommend sitting down with an experienced financiall planner and have them go over your entire financial picture. I think you'd get the best advice that way.
See Proof. You can make free money online.
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Wed Jan 18, 2012 9:00 pm |
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oldguy
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Location: arizona
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quote:
That being said I am not real fond of the lifestyle options that you can pick for your investments, because of my age being 27 I don't like to get to much into bonds at this point.
The funds are as stated. Currently I am sitting in aggressive that wellsfargo offers.
When you say 'lifestyle option' - are you talkng about Target Funds such as Target2050?
What is the agressive WF fund that is offered?
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Wed Jan 18, 2012 9:10 pm |
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warrior327
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Cash: $ 2.80
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Joined: 16 May 2011
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When I say lifestyle option I mean that they have categories for age groups like: They are not actually based off a certain year that I see. They remind me alot of lifestyle funds that is why I mentioned that.
Conservative Age 20 to 44
Conservative Age 45 to 59
Conservative Age 60 Plus
Moderate Age 20 to 44
Moderate Age 45 to 59
Moderate Age 60 Plus
Aggressive Age 20 to 44
Aggressive Age 45 to 59
Aggressive Age 60 Plus
Currently the one I am in is Aggressive Age 20 to 44 which broke down like:
Bond Fund 15%
Mid Cap Stock Fund 10%
Large Cap Stock Fund 30%
Small Cap Stock Fund 20%
International Stock Fund 25%
Total 100%
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Wed Jan 18, 2012 11:12 pm |
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oldguy
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Cash: $ 309.30
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quote:
Bond Fund 15%
Mid Cap Stock Fund 10%
Large Cap Stock Fund 30%
Small Cap Stock Fund 20%
International Stock Fund 25%
That's OK but I question the need for the bonds. You don't really need to modulate volatility. Over 30 yrs, an 85%/15% mix of stocks/bonds historically returns about 10.75%/yr vs 11%/yr of a 100%/0% mix.
In 30 yrs with a $5000/yr input, the 100/0 = $1,105,000 and the 85/15 = $951,000. Not a big difference - but no need to give it up - you don't care how big the +/- annual swings are, you only care about the end point.
BTW, the above points up how important fees can be over the long haul, a client at a no-load company maty pay a 0.12%/yr fee - a loaded fund may charge 1% or 2%, it can cost several $100,000's.
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Thu Jan 19, 2012 12:06 am |
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coaster
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Agreed with above on bonds - none needed at this age. Waste of asset allocation.
~Tim~
Eye Candy : Why Whimsy
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Thu Jan 19, 2012 6:04 am |
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warrior327
Member
Cash: $ 2.80
Posts: 12
Joined: 16 May 2011
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I want to get rid of the bonds but that would change the percentages in what I am looking to invest that is why I mentioned this asset allocation. Any possible changes one might add to this portfolio allocation?
Mid Cap Fund - 25%
Large Cap Fund - 30%
Small Cap Fund - 25%
International Fund - 20%
It does away with the bonds. I am not selling the the current 85/15 ratio rather just reallocating funds to not have bonds in the future asset allocation. I did also forget to mention that my spouse is employed at the same employer with the same 401k options. With that being said do you think her portfolio should be set up differently?
thanks
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Sat Jan 21, 2012 4:21 am |
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coaster
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I'd weight it heavier toward international, but that's just my opinion.
~Tim~
Eye Candy : Why Whimsy
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Sun Jan 22, 2012 3:54 am |
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Vensik
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Joined: 24 Jan 2012
Location: Richmond, VA
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To have bonds or not is more about your personal risk tolerance than just your age, but from the way you keep saying you would you want to be aggressive and understand what it means that should be fine. I might suggest a little less Small Cap and maybe adding that to international value instead, but other than that this allocation should live up to what you want.
It really is sad how few options some employer plans have.
Financial Advisor
Richmond, VA
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Tue Jan 24, 2012 3:36 am |
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