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401(k) ?'s

Old 11-11-2007, 05:57 AM
  #1  
Senior MemberCaptains Club MemberPLEDGER
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Join Date: Feb 2005
Location: Kent Narrows, MD
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Default 401(k) ?'s

How often do you check/adjust the allocation in your 401(k) ?


I have been ignoring mine for too long. The 2 stock funds have historical yields (1-5 years) of 10%-15%. The bond fund is fixed at 3.3%. Allocation is 33/34/33

I have 9 funds to choose from and all have 1-5 year yields of 10%-30% .

Should I:

1. Spread out the current alocation to more funds ?

2. Re-allocate the $ already invested to more funds ?

3. At 48 yo have 1/3 going into a 3% bond fund ?

Thanks

Elusive is offline  
Old 11-11-2007, 06:28 AM
  #2  
Senior MemberPLEDGERPLEDGERCaptains Club Member
 
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Default RE: 401(k) ?'s

Something isn't right with your bond fund Elusive. I am getting a 4.25% yield from a gov't MM fund. I can't help you on the allocation since 48% of my 401k is in the MM fund.......I invest like I was born during the depression.....and this market is too volatile for my liking. I'll be interested in what others suggest.......I imagine they will say you have too much in bonds given your age.
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Old 11-11-2007, 07:31 AM
  #3  
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Default RE: 401(k) ?'s

Your limited to the choices in your company plan just like I am. I picked the best of what was offered and tried to split it up after investing a fixed amount in each choice so as not to get all my eggs in one basket. Going forward as each new fund hits my threshold, I stop adding and select another.

On our offerings we too have some decent returns on the 1-5 year funds, but instead I picked only from the funds that had 10+ year histories of good returns. More important in my opinion.

We also just went thru a 401k fund management change from Fidelity to T.Rowe Price, not many of us were happy about that. I'm sure it was good for the company but maybe not so much for us.

Because of the switching the new thinking now is to contribute to your companies matching limit and then put the rest into a Roth IRA on your own.
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