401(k) suggestions

[kv968]

If you don't have a good fund, you need to compromise. I do this within our accounts.

The allocation I shoot for within each

75% domestic equity
25% international equity

45% large cap domestic
15% mid cap domestic
15% small cap domestic
15% large cap foreign
10% small cap foreign/ emerging markets

For example, wife's 401k does not have a good small cap, so the 15% small cap allocation for her goes to mid caps (so she has 30% mid caps, not 15% like target allocation). Same with foreign- she does not have a foreign small or mid cap fund, so the 10% allocation to this is rolled into her foreign large cap fund (25% instead of 15%).

Although you can compromise, you have to make sure that in doing so you don't lose track that your overall allocation could be shot. Assuming your wife puts $4000 into her IRA using the original allocation and $4000 in her 401k using the above adjustments, her overall small cap exposure would be 12.5% between the accounts and nowhere near the 25% allocation that's alloted. Granted, small tweeks and compromises here and there are par for the course since you most likely won't find the "perfect" match between funds. Just don't let the compromises and tweeks drastically change the overall picture.

[kv968]

One other point- because fidelity, vanguard and T Rowe price all calculate "internal rates of return", and each porfolio has a similar allocation, it is easiest to compare rates of return of each account.

401k for wife is thru Fidelity
My 401k for me is thru Vanguard
Our Roths are with T Rowe Price

Granted my T Rowe account is older, to the rates of return are more "battle tested", but the point of if the Roth shows a 14% return and 401k shows a 9% return, I can clearly see the funds in one are better than the other.

That has not happened yet (differences that high), but it is something I do look at.

And although this a nice feature, what does it really matter if one company is doing better than the other? You can't do anything about it really. If Vanguard's 401k is doing better than Fidelity's, you can't switch the other 401k over to Vanguard. You could allocate more money to the Vanguard 401k than the Fidelity if you're not at the max, but that's about it.

[jIM_Ohio]

Although you can compromise, you have to make sure that in doing so you don't lose track that your overall allocation could be shot. Assuming your wife puts $4000 into her IRA using the original allocation and $4000 in her 401k using the above adjustments, her overall small cap exposure would be 12.5% between the accounts and nowhere near the 25% allocation that's alloted. Granted, small tweeks and compromises here and there are par for the course since you most likely won't find the "perfect" match between funds. Just don't let the compromises and tweeks drastically change the overall picture.

the 401k's are the concern.

IRAs are permanent and we can use 100% of the mutual fund universe, so lack of choices isn't the issue... and T Rowe was chosen because they have funds for every need/ every asset class with low fees.

401k's in our house come and go (8 401k's in 10 years between the two of us). The solution of each entity having the same allocation is a solution to the 401k problem... with the IRAs it's real easy to find the funds we like.

[kv968]

the 401k's are the concern.

IRAs are permanent and we can use 100% of the mutual fund universe, so lack of choices isn't the issue... and T Rowe was chosen because they have funds for every need/ every asset class with low fees.

401k's in our house come and go (8 401k's in 10 years between the two of us). The solution of each entity having the same allocation is a solution to the 401k problem... with the IRAs it's real easy to find the funds we like.

If you're going through 401k's that quickly then I can see your point in allocating like you do. However I would still think that you could use the 401k portion of your retirement funds as more of your large-cap holding and use the IRA as a supplement to that. Reason being, most 401k's at least have a decent large-cap fund whereas some are definitely lacking in the smaller and int'l funds.