Evaluate my 401K investment elections

[BigVic]

Hey everyone. I am 24 yrs. old and was wondering if the experts could give me any advice on what to invest in within my 401K, or if I should stick with what I currently invest in.


Stock Investments LARGE CAP FID GROWTH COMPANY 25%
Stock Investments LARGE CAP SPARTAN US EQ INDEX 25%
Stock Investments SMALL CAP ABF SM CAP VAL INV 20%
Stock Investments SMALL CAP ROYCE VALUE PLUS SER 20%
Stock Investments INTERNATIONAL FID DIVERSIFIED INTL 10%


Any advice would be greatly appreciated.

[KTP]

Personally I moved all of my 401k into a index mutual fund (one of the Vanguard S&P500 index funds). It has an expense ratio of like 0.07 vs 0.60 to over 1 percent for some of the other funds. I figured as long as I am losing money in my 401k, might as well pay the managers the least possible amount to lose it for me.

All of the funds I had (similar funds to the ones you named) all lost the same or more money than the S&P 500. They are just monkeys throwing darts, and yet they charge you even when the dart misses the board entirely.

[BigVic]

Thanks for the info KTP. Are there any other suggestions out there? Should I go 80% Index and 20% International, or put everything in an Index fund for now? Not sure which would be most productive as I am only 24 and have many years ahead of me before retirement.

[grand_canyon]

You're 100% in the stock market with no bond funds. You are young but I still wanted to point this out. Even though I'm 60 stock - 40 bonds didn't really help too much in this downturn.

[atomicrc11]

Just to point out, Stock Investments LARGE CAP SPARTAN US EQ INDEX is a Fidelity index fund that mirrors the S$P 500 Index. They have a Spartant S&P 500 Index as well that anyone can invest in, but the one you have is institutional only.

I would say that the Spartan US Equity index is a good fund and one to base your portfolio around. If this is your only account, I would say that at your age you would want to be 60% in US stocks, 20% in international stocks and 10% in bonds. What other funds are available in your 401k?

For the funds you listed the US Spartan should be the majority and if you wanted put around 10% into the Fidelity Growth Company fund. The Diversified International isn't horrible but there may be a better option if you list what is available in your plan. The two small cap funds are horribly expensive and I wouldn't put too much into those. I'd say do 60% Spartan US Equity, 10% Fidelity Growth Company, 20% Fidelity Diversified International and 10% in a bond fund. Like I said, if you list all available funds, a better decision can be made.

[BigVic]

Here are the funds available to me.


Blended Fund Investments -- FID BALANCED
Blended Fund Investments -- FID FREEDOM 2000
Blended Fund Investments -- FID FREEDOM 2005
Blended Fund Investments -- FID FREEDOM 2010
Blended Fund Investments -- FID FREEDOM 2015
Blended Fund Investments -- FID FREEDOM 2020
Blended Fund Investments -- FID FREEDOM 2025
Blended Fund Investments -- FID FREEDOM 2030
Blended Fund Investments -- FID FREEDOM 2035
Blended Fund Investments -- FID FREEDOM 2040
Blended Fund Investments -- FID FREEDOM 2045
Blended Fund Investments -- FID FREEDOM 2050
Blended Fund Investments -- FID FREEDOM INCOME
Bond Investments Stable Value FID MGD INC PORT
Bond Investments Income FIDELITY GOVT INCOME
Bond Investments Income PIM TOTAL RT INST
Stock Investments Large Cap ABF LG CAP VAL INV
Stock Investments Large Cap DAVIS NY VENTURE A
Stock Investments Large Cap FID GROWTH COMPANY
Stock Investments Large Cap SPARTAN US EQ INDEX
Stock Investments Mid-Cap FIDELITY LOW PR STK
Stock Investments Mid-Cap MSIF MID CAP GRTH P
Stock Investments Small Cap ABF SM CAP VAL INV
Stock Investments Small Cap ROYCE VALUE PLUS SER
Stock Investments International AMER CAP WRLD G&I R4
Stock Investments International FID DIVERSIFIED INTL


Right now I am 80% SPARTAN US EQ INDEX and 20% International AMER CAP WRLD G&I R4. Thanks for the help!

[atomicrc11]

I would have to say that with this selection any of the Fidelity Freedom Funds are a good choice. Since you're just starting out, you could put all your funds in there and it will be properly diversified.

As for a more specific allocation, these are good funds:

Bond Investments Income FIDELITY GOVT INCOME
Stock Investments Large Cap SPARTAN US EQ INDEX
Stock Investments Mid-Cap FIDELITY LOW PR STK
Stock Investments International AMER CAP WRLD G&I R4
Stock Investments International FID DIVERSIFIED INTL

It will all depend on how much Index vs manged funds you want. That is all up to you.