401k Investment Elections Guidance

**Petunia 100** · 12-14-2011, 08:19 AM

Originally posted by mark_1 View Post

Hello -

I'm looking for advice on selecting my Fidelity 401k elections. I'm currently 32 and have approximately $77k in my 401k. I currently contribute 10% of my salary to my 401k. It seems the easy option is to put 100% of this contribution toward "Fidelity Freedom 2040," but I feel I will benefit more by splitting my contribution into other funds in addition too. At my age, I know I should have higher risk funds and then as I get older switch to less risky funds. Currently, 25% of my contribution goes toward the Fidelity Freedom 2040, then the rest is in Large Cap. I am hoping someone can provide some guidance as to what funds to select as I am somewhat clueless in this area.

% Income ?
% Large Cap ?
% Mid Cap ?
% Small Cap ?
% International ?

Large Cap
ABF LG C AP VAL INV
FID C ONTRAFUND
FID DIVIDEND GR
FID OTC PORTFOLIO
SPTN TOT MKT IDX INV

Mid-Cap
ARTISAN MID C AP VAL
FID LOW PRIC ED STK
FID MID C AP STOC K
MSIF MID C AP GRTH P

Small Cap
ALLNZ NFJ SMC PVAL AD
NORTHERN SM C AP VAL
ROYC E VALUE PLUS SER
WFA SM C AP VAL INV

International
FID DIVERSIFD INTL
INVS DEVELOP MKTS A

Blended Investment
Large Cap
FID FREEDOM 2040

Bond Investments
Stable Value
FID MGD INC PORT

Income
AM C ENT GOVT BD INV
FID NEW MARKETS INC
INVS HIGH YLD INST
PIMC O REAL RTN BD AD
PIMC O TOT RETURN ADM

Thank you in advance for advice and guidance!

Mark

I'm glad to see you started a new thread, Mark. I don't know what is up with the error on your first thread.

IMO, you should either be 100% in Fidelity Freedom 2040 or 0%. Being 75% in a large cap fund and 25% in FF 2040 throws your allocations out of whack. I see you have Spartan Total Market Index in your line-up, I would be making use of that. It doesn't get much better than a total market index fund at a rock-bottom cost.

I suggest something along the lines of:

40% Spartan Total Market Index
10% Royce Sm Value
25% Fid Diversified Intl
25% Pimco Total Return

**mark_1** · 12-14-2011, 08:54 AM

Thank you for your suggestions...

Would you then recommend an exchange from my existing funds to the new funds? Or I have an option to rebalance.

My Existing (percentages are approximates):

Large Cap
ABF LG CAP VAL INV 1.3%
FID CONTRAFUND 53%
FID DIVIDEND GR 21%

Mid-Cap
FID MID CAP STOCK .3%

International
FID DIVERSIFD INTL .6%

Blended Investment
Large Cap
FID FREEDOM 2040 23%

**Petunia 100** · 12-14-2011, 09:05 AM

Originally posted by mark_1 View Post

Thank you for your suggestions...

Would you then recommend an exchange from my existing funds to the new funds? Or I have an option to rebalance.

My Existing (percentages are approximates):

Large Cap
ABF LG CAP VAL INV 1.3%
FID CONTRAFUND 53%
FID DIVIDEND GR 21%

Mid-Cap
FID MID CAP STOCK .3%

International
FID DIVERSIFD INTL .6%

Blended Investment
Large Cap
FID FREEDOM 2040 23%

If you decide to make a change in your allocation, then just exchange to that allocation. There are no tax consequences.

401k Investment Elections Guidance