401k -- How diverse are you?

[The Dancing Peacock]

At the job I started a couple of months ago, we're switching 401k providers to Fidelity.

I wanted to gauge how diverse other people were. What funds you all are invested in, if you want to share that, and percentage in each.

What I'm not really sure, is what percentages I should go with. I want some balance. I want to go aggressive b/c I have a long time before I retire, so I'm guessing following that strategy of ~85% stock and 15% bonds sounds good. Any guidlines for how many different funds I should be investing in? Any maximum percentage for any 1 fund?

I'm 24, and I have no expenses other than cellphone, cable modem and paying off credit cards,entertainment. I'm going to contribute 10%. I'm also trying to save some money for a car as well, so I'm putting away about $150/check for that. Computer hardware always gets a percentage too, right? I might go to a higher contribution but I think 10% is good simply because I don't think I can afford to take too much more out of my check (I work in entertainment, they don't pay well at all). Actually having some savings might be a nice thing too

 

[StageLeft]

As long as you are diverse and not throwing money into silly funds you'll be fine. Pick a large fund that is fairly aggressive but not overly so. Overly aggressive means overly risky. Don't go for funds that promise you the world. Just be reasonable and pick a strong fund since, like you say, you have a long time before retiring.

 

[rmblam]

I have mine all in stocks(mutual funds). I contribute 10%.

international growth 30%
Small co. aggressive growth 40%
Growth and income 30%

 

[The Dancing Peacock]

rmblam, how many different funds in each sector have you invested in?

 

[XMan]

I'm VERY diversified.

I keep my money in jars from Smuckers, JIF, Peter Pan, and Aunt Jemimah, all buried covertly in my backyard.

 

[Hammer]

100% invested in Enron. It'll turn around, I know it will.

 

[SuperTool]

50% smallcaps NBGNX
20% midcap value LLPFX
20% bigcap blend VIIIX
10% tech growth (hopefully ) PIADX
+ ROTH IRA
+ Employee stock

I am just 21, and I already have 20K saved for retirement after 1 year of work. I need to get a GF to spend money on.
Stay away, golddiggers

 

[Evadman]

Also highly diversified in my 401k. I get maching contributions in stock, and get a 15% discount, and I am maxed out in both ( 15% 401k, 20% stock) I like making money.

 

[vi edit]

40% Agressive Split among:
- Fidelity equity growth
- INVESCO Small cap
- Janus mutual fund
- Another small cap index

25% Dynamic split among:
- International stock
- Small companies

20% Moderate split among:
Large cap index

15% Conservative split among:
Bond and mortgage

I've also got my own ira that is invested in a Utilities mutual fund

I'm pretty diversified

 

[Mister T]

401K with 20% contribution until I hit the legal limit ~ $11,000 per year

25% S&P500
25% Large Cap Value
25% Med Cap Value
25% International Small Cap

Roth IRA, max it out every year for the past 3 years (3x2,000) + 3,000 this year (2002)

66% (4,000) in Vanguard S&P500
34% (2,000) in Dresdner Biotech Fund

2002 Contribution will be made in July when I receive my bonus from work. Still undecided. I am thinking about a financials sector mutual fund since one of the strongest sectors that rebound from a recession are financials historically. And on a risk adjusted basis, Financials beat the crap out of tech.

 

[Mister T]

The Dancing Peacock,

Oh, and try to bump up your 401K to at least 15%.... At the age of 24, time is your friend
I am only 22 BTW.

 

[mithrandir2001]

85% Vanguard Total Stock Market Index
15% Vanguard Total Bond Market Index

I'm planning to open a Roth IRA to get some international exposure...probably Vanguard Total International Stock Index

All hail John Bogle. All hail indexing.

 

[Mister T]

And yet another post

Here are some numbers to illustrate the power of interest over time... I will use myself as example....

As of december last year, I had about 12K combined oveer 401K + Roth IRA.
Lets assume for the next 40 years that I put 15,000 a year into 401K + Roth IRA.

How much money do I have?

8% average return ------> 4.14 Million (absolute worst case scenario)
10% average return ------> 7.18 Million (low case)
12% average return ------> 12.6 Million (base case)
15% average return ------> 29.9 Million (high case)

When I turn 59.5 I am going to have my eyes set on a 70' motor yacht.... should cost only about 5 million
And I am not counting all the money the wife is gonna make!

 

[The Dancing Peacock]

<< The Dancing Peacock,

Oh, and try to bump up your 401K to at least 15%.... At the age of 24, time is your friend
I am only 22 BTW. >>




Unfortunately, I don't make much money at all. I want to sock some cash away for a downpayment on a car and insurance costs. I might invest it on my own in a Mutual fund for better return than a Savings Acct, in addition to maybe trying to start a Roth IRA in a few months. I think I'm going with at least 10% as of right now, I'm gonna see if I can handle 11 or 12%, and maybe bump it to 15%.

I also want to get out of my parents house soon. Its not bad, just living at home at my age kind of sucks I want to just get a savings account going, too. In college, I was pretty much paycheck to paycheck. I still have some CC debt, no student loans though, so I'm in decent shape. About 90% of each paycheck so far has gone to paying my Credit Cards off. Only $1000 left, I think. I'm going to be getting to the point where all my money isn't owed to other people or places and I can save it. I like saving, almost as much as I like to spend it

 

[alrocky]

40% Large cap mutual funds
25% small cap mutual funds
25% international mutual funds
10% bond funds

$2k for last year's IRA
$3k for this year's IRA

12% of income and 5% company match per paycheck + additional auto-investments with other mutual funds.

Dancing Peacock and Mister T are smart to invest now. DP, you don't want to carry over a high interest monthy CC bill. Stay home as long as you can and save that rent money. Go to Morningstar.com forums for information. Some very good and interesting investments breakdowns listed by others, but the one (domestic) I like the best is mithrandir2001's:

85% Vanguard Total Stock Market Index
15% Vanguard Total Bond Market Index