401k stuff

[pontifex]

The other day I was thinking about my 401k plan. I was wondering if there was a way to see how it was doing or what it was doing and if need to make any changes to it.

I've only had it for a few months. I put 6% in and my employer matches that (which is the max they match). Today I get a summary packet type thing and I have no idea what most of it means.

My vested balance is $416.92
Gains/losses are $18.50 (I assume it would say -18.50 if I lost money right?)
Contributions is $502.65
Balance on all accounts is 521.15

I've got this 2nd page that says Investment Performance and there's a big list of Investment options and numbers with returns for different time periods and other stuff.
There's an allocation analyzer with EE and ER match...

 

[CPA]

Vested balance is what is your's right now.
You are correct on gains/losses
Contributions is what you, and most likely, your company contributed - unless there is a seperate line for company match
Total balance is most likely vested plus unvested balances.

 

[alrocky]

Originally posted by: pontifex
The other day I was thinking about my 401k plan. I was wondering if there was a way to see how it was doing or what it was doing and if need to make any changes to it.

I've got this 2nd page that says Investment Performance and there's a big list of Investment options

You should list your investment choices and your investment options if you want an opinion as to any changes you need to make.

 

[Dr. Detroit]

Send an email off to HR so that you can get online access to your provider.

Once you do that you can elect to change your fund allocations and change what investment choices you have.

 

[pontifex]

Scans of the documents I received.

page 1
page 2
page 3

 

[IronWing]

If it were my 401K I wouldn't change anything until I did lots of reading on various options. All your money is in a target date (2040) mixed asset fund. That type of fund is an excellent choice for folks who don't know what they doing are yet. Also an excellent choice for those who do. I can't say anything about that specific fund as I don't know anything about it other than that the target date is 2040. The target date you select should be either your rough expected retirement date or a few years later.

 

[DaveSimmons]

That T Rowe Price 2040 fund already includes a bit of everything:
fund composition

The only things wrong with it (in my opinion) is that it includes a little higher % of bonds than I'd want (7.9%), and too low a % of foreign (22%).

You can fix this by changing your future allocations to something like:
90% T Rowe Price 2040
10% Fidelity Advisor Diversified International

(If you rebalance the existing money too, you might make the percents for current and future something like 95% / 5% instead of 90/10.)

. . . but you'll still be fine if you do nothing, the TRP2040 looks good by itself.

 

[alkemyst]

my target funds are doing ok (2035)...my mid caps are in the shitter last quarter. I need to play with my risky money a bit.

We have a nice online interface I can make changes everyday if I want.

 

[cKGunslinger]

This handy calculator can help you out, as well: 401k calc


Looks like I need some serious gains or start dumping more $$ into my account..

 

[alrocky]

Originally posted by: ironwing
If it were my 401K I wouldn't change anything until I did lots of reading on various options. All your money is in a target date (2040) mixed asset fund. That type of fund is an excellent choice for folks who don't know what they are doing yet. Also an excellent choice for those who do. The target date you select should be either your rough expected retirement date or a few years later.

Good information here. It's an aggressive asset allocation with only 7.9% bond but you might want to increase the International as DaveSimmons suggests and add Fidelity Advisor Diversified International or a cheaper (Expense Ratio) Vanguard international mutual fund in an IRA.

T. Rowe Price Retirement 2040 TRRDX 0.74% Expense Ratio and a Morningstar Analyst Pick.

Fidelity Advisor Diversified Intl A FDVAX 1.20% Expense Ratio

Plug in those 5 letter tickers at the Morningstar site for more information.

You should strongly consider increasing from 6% to the maximum you can afford ($15,500) and an IRA ($4,000) too. You want to do this ($15,500+$4,000 = $19,500) before you open a taxable account.

 

[her209]

Originally posted by: alrocky
You should strongly consider increasing from 6% to the maximum you can afford ($15,500) and an IRA ($4,000) too. You want to do this ($15,500+$4,000 = $19,500) before you open a taxable account.

Be careful, the IRA is only tax-deductible if you make under a certain amount.

 

[ultimatebob]

Having all of your assets in one Mutual Fund isn't very smart. Diversify, man, Diversify!

I'd recommend a bit more exposure in International stocks like everyone else is saying, as that's where the real growth is. By 2040, China and India will be ones in charge of the world economy!

 

[alrocky]

It's October 25 and it's doubtful the OP will be able to max out his 401(k) @ $15,500 let alone an IRA @ $4,000 this year. Based on his contributions so far he probably doesn't have to worry about problems with a traditional IRA and may be better suited for a ROTH IRA anyway. His 401(k) choice with TRRDX is fine and the next thing he should strongly consider is saving as much for retirement as he can afford to in his 401(k).

---
u-bob likely didn't take a look at the T.Rowe Price mutual fund in question as it is a diversified mutual fund albiet the ER is a tad high.

 

[LordSnailz]

wow, lots of good info. here ... any suggestions for fidelity funds? With no min. cap and low expense ratios?

 

[Special K]

Now would probably be as good of a time as any to recommend the diehards forum - tons of good info and helpful members there.

 

[DaveSimmons]

Originally posted by: ultimatebob
Having all of your assets in one Mutual Fund isn't very smart. Diversify, man, Diversify!

See the link I provided. You missed that the TRP40 is a "fund of funds" not just one fund. If you look over the funds included, there are S&P500, other US, foreign and bond funds.

That's already as much diversification as you need in a 401k, I just feel anyone under 50 is better off with a little less bond and a little more foreign.

 

[alrocky]

Originally posted by: LordSnailz
wow, lots of good info. here ... any suggestions for fidelity funds? With no min. cap and low expense ratios?

No min. cap?

Expense Ratio:
a) 0.10% - Spartan 500 Index Investor - FSMKX
b) 0.10% - Spartan Extended Mkt Index Inv - FSEMX
c) 0.10% - Spartan Total Market Index Inv - FSTMX
d) 0.10% - Spartan International Index Inv - FSIIX

[a) +b) = c)]

If you can get Fidelity's Spartan funds and avoid the $10k initial minimum, get 'em. The top 2 listed (in a ~7:3 ratio) = FSTMX. The bottom 2 gives you great diversification and basically covers the world at a dirt cheap expense ratio of 0.10% They could represent the bulk or core of your portfolio.