401K through Job - Need Advice

**jIM_Ohio** · 11-16-2007, 06:46 AM

Can you list all your 401k choices here?

Most mutual funds have a 5 letter symbol-

like VFINX or PRFDX- if you post tickers, that is a huge help.

Each fund ticker also has a name- that can help too.

VFINX= Vanguard S&P 500 index fund
PRFDX T Rowe Price Equity Income fund.

You heard correct you don't want all your eggs in one basket. How much time are you willing to spend to learn to make good decisions?

My suggestion- choose a large cap fund, choose a second small cap fund, choose a third international fund, choose a 4th bond fund and maybe choose a 5th or 6th fund depending how good your 401k is.

What % of your paycheck do you contribute to 401k?

You could follow the pie charts they give you, you could create your own, you could stick with a total market index fund and choose only one fund if you wanted to.

**Broken Arrow** · 11-16-2007, 07:18 AM

Hmm, the Putnam funds have been having a hard time lately... if one article on the internet is to be believed....

I still maintain that an index fund is a good starting point to build on. The S&P should be inherently diversified across the U.S. market, but I do agree that it's not diversified enough as it has no international or bond exposure for example.

At age 40, and depending on risk tolerance, I would think that some focus on bond is order, but perhaps international as well.

**volito** · 11-16-2007, 08:44 PM

This is what I currently changed to...

PUTNAM ASSET ALLOC CONSERV Y - Ticker-PACYX - 99%

PUTNAM ASSET ALLOC BALANCED Y - Ticker -PABYX - 1%

Also just saw this "Your future contributions to PRETAX PAYROLL DEDUCTION appear below:
- PUTNAM ASSET ALLOCATION:BALANCED PORTFOLIO CLASS Y : 100%"

"does this mean all future money goes into the 1% fund and the bulk stays in 99% fund" Confused

"Not sure if this is good"

Can you list all your 401k choices here?

PAGYX-PUTNAM ASSET ALLOC GROWTH Y
TGCNX-TCW GALILEO SELECT EQUITIES N
RGAEX-GROWTH FUND OF AMERICA R4
ARTMX-ARTISAN MID CAP FUND
ACRNX-COLUMBIA ACORN FUND Z SHARES
PGIYX-PUTNAM GROWTH AND INCOME Y
LAVLX-LORD ABBETT MID CAP VALUE FUND
PYSVX-PUTNAM SMALL CAP VALUE FUND Y
PDDXX-PUTNAM MONEY MARKET FUND
PUTNAM S&P 500 INDEX FUND- "wHAT i JUST GOT OUT OF"
PUTNAM AMERICAN GOV INCOME Y

You heard correct you don't want all your eggs in one basket. How much time are you willing to spend to learn to make good decisions?

I guess as much time as it takes to get it right

What % of your paycheck do you contribute to 401k?

Honestly "small $35 bucks a week"

I don't mind being a bit aggressive most of the time. I was trying to back out a bit to see how things go. I just felt the S&P was at its high since the big dip and wanted to balance out a bit. But what do I know. I actually wanted to put all my eggs in something like a bank CD and get something like 4%, but was told that is not possible. Was going to let it sit there for awhile "Just a feeling I had".
I thank you guys or gals for any more advice you can give. I listed all the options they give me above. Need any more info please ask !

Thanks again

**jIM_Ohio** · 11-18-2007, 03:55 PM

being 75% in S&P 500 would be better than being only 5% or 0% in S&P 500. The index is broad enough to be diversified.

And at $35/month, it's not like we are talking about a huge amount of money.

**volito** · 11-21-2007, 09:06 PM

being 75% in S&P 500 would be better than being only 5% or 0% in S&P 500. The index is broad enough to be diversified.

And at $35/month, it's not like we are talking about a huge amount of money.

Glad I came here for advise !

It's 35 a week plus 11 from employee = 46

Not a whole lot of money hmmm.

Account has 20k in a few years. Maybe I should just lose it anywhere !

You must be a broker with remarks and advise like that !

Looks like a Wonderful forum !

**jIM_Ohio** · 11-23-2007, 07:28 AM

$46 per week=$2400/year.

I think putting 75% into S&P 500 index and 25% into something else (International) would make sense. Once you get around 10k investing, look to add something else (small caps or other).

**volito** · 11-23-2007, 08:10 AM

Originally posted by jIM_Ohio View Post

$46 per week=$2400/year.

I think putting 75% into S&P 500 index and 25% into something else (International) would make sense. Once you get around 10k investing, look to add something else (small caps or other).

Do you actually read post before you give advise. Account is way above 10k already. "Hope you aren't doing this for a living.

I am new here and was trying to get some good advise form this forum. This post is a week or so old and must say advise is limited here!

Thanks for the littler advise I received. Admin's you should monitor your forums a bit more !

**jIM_Ohio** · 11-23-2007, 11:04 AM

first, unless a post has been edited, here is what you posted.

Ok my job started a 401k around year 2000 "just after the big crash". So my 401k did pretty good up until now. I had all my investment going into an S&P fund "as someone suggested".

I keep hearing that this is not good because all my eggs are in one basket. So I recently switched from S&P fund to an asset allocation conservative fund and all new contributions into a asset allocation balanced fund.

Honestly I have no clue what I am doing as you can see.
Advise is needed !

I am 40 years old, I put a small % of my check weekly and employer puts $8 week '"annuity". Our 401k is Putnam.

Should I follow the pie charts they give us? Is this usually safe?
As my 401K is 7 years old it kinda grew a bit and it'll be a shame to loose it or not invest it properly. I am reading as much as I can to learn. As all you know it's allot to consume for an average investor.

any advise will be great and thanks in advance.

This is what I currently changed to...

PUTNAM ASSET ALLOC CONSERV Y - Ticker-PACYX - 99%

PUTNAM ASSET ALLOC BALANCED Y - Ticker -PABYX - 1%

Also just saw this "Your future contributions to PRETAX PAYROLL DEDUCTION appear below:
- PUTNAM ASSET ALLOCATION:BALANCED PORTFOLIO CLASS Y : 100%"

"does this mean all future money goes into the 1% fund and the bulk stays in 99% fund" Confused

"Not sure if this is good"

Honestly "small $35 bucks a week"

I don't mind being a bit aggressive most of the time. I was trying to back out a bit to see how things go. I just felt the S&P was at its high since the big dip and wanted to balance out a bit. But what do I know. I actually wanted to put all my eggs in something like a bank CD and get something like 4%, but was told that is not possible. Was going to let it sit there for awhile "Just a feeling I had".
I thank you guys or gals for any more advice you can give. I listed all the options they give me above. Need any more info please ask !

Thanks again

Glad I came here for advise !

It's 35 a week plus 11 from employee = 46

Not a whole lot of money hmmm.

Account has 20k in a few years. Maybe I should just lose it anywhere !

You must be a broker with remarks and advise like that !

Looks like a Wonderful forum !

So it took you 3 posts to put all your info out here... and it's clear you need some asset allocation assistance from your first post and subsequent follow ups.

If you have 20k and contribute another 2.4k each year, I would put money in a diversified portfolio of large caps, small caps, international, and maybe bonds depending on your risk tolerance.

**kv968** · 11-23-2007, 12:31 PM

I would say go with the Putnam Balanced fund. It currently has ~38% bonds, ~5% cash and 57% equities (domestic/int'l). The conservative fund is TOO conservative for someone your age IMO. That fund has a ~68% bond and ~27% equity allocation in it. I know the market is volatile right now but you've got time and you should be in equities more than 27%.

**QueenOphelia** · 11-23-2007, 08:24 PM

Originally posted by volito View Post

Thanks for the littler advise I received. Admin's you should monitor your forums a bit more !

Dude, chill out. No one here is professional money advisor.

The advice (and it is ADVICE not ADVISE) is worth what you pay for it. If you want specialized, hand-holding find a CFP or someone who gets paid to dispense financial advice.

**Tree0164** · 11-24-2007, 03:53 AM

This forum is a fairly friendly place-no one here is a money manager professionally. We all have similar goals-wanting to have enough money to live day to day either in the present or in retirement.

I am not too familiar with the Putnam funds but recomend going to Morningstar.com to see what they are invested in and then building your portfolio around that. My husband and I are almost 40 years old and we have 60% in US based growth stocks, 15% international growth and 15% growth and income/bond funds.

**MoneyMonster** · 11-25-2007, 03:56 AM

you are 40 years old.

100 - 40 = 60

so you should have 60% stocks and 40% bunds in your 401k.

401K through Job - Need Advice