Hi all, I just started a new job, company seems like it would be a good place to stay for a long time, pension, good benefits.
I would like to start my 401k portfolio when it becomes available to me, I am fairly well versed in personal investing, but I need an extra opinion on designing my portfolio.
The choices however are pretty sparse..... I am a big fan of the 'lazy' portfolio though, keeping things simple.
My options are: (tracking index)
Target Retirement date funds
A Money Market Fund
Government/Credit Bond Fund
Equity Fund (S&P 500)
Small Cap Fund (Russell 3000)
International Fund
Emerging Markets Fund (Both MSCI EAFE funds)
Company Common Stock
I have the option of purchasing company stock and receiving cash dividends off of them, but purchasing them on a pre-tax basis, which I thought would be a good way to create more passive income easily, which in the end is the desired result.
My issue is that the funds are so sparse, and if I want more diversity, I would have to pay exorbitant fees to manage the account myself in a brokerage window and then the company match is straight company common stock, which would skew my portfolio very heavily.
The Bond fund seems very poor, so one idea I was playing with was making a target date fund a majority of my portfolio so I can build on Equity now and then as it slowly goes more conservative with time that my ending portfolio split would be somewhere around 20-30% bonds, however I should see good growth from a portfolio heavily weighted in equity.
Any thoughts on how I could balance my funds would be appreciated, just seems like some of these choices I would be in at 20+% and each and that makes their performance very critical, and also more volatile.
I would like to start my 401k portfolio when it becomes available to me, I am fairly well versed in personal investing, but I need an extra opinion on designing my portfolio.
The choices however are pretty sparse..... I am a big fan of the 'lazy' portfolio though, keeping things simple.
My options are: (tracking index)
Target Retirement date funds
A Money Market Fund
Government/Credit Bond Fund
Equity Fund (S&P 500)
Small Cap Fund (Russell 3000)
International Fund
Emerging Markets Fund (Both MSCI EAFE funds)
Company Common Stock
I have the option of purchasing company stock and receiving cash dividends off of them, but purchasing them on a pre-tax basis, which I thought would be a good way to create more passive income easily, which in the end is the desired result.
My issue is that the funds are so sparse, and if I want more diversity, I would have to pay exorbitant fees to manage the account myself in a brokerage window and then the company match is straight company common stock, which would skew my portfolio very heavily.
The Bond fund seems very poor, so one idea I was playing with was making a target date fund a majority of my portfolio so I can build on Equity now and then as it slowly goes more conservative with time that my ending portfolio split would be somewhere around 20-30% bonds, however I should see good growth from a portfolio heavily weighted in equity.
Any thoughts on how I could balance my funds would be appreciated, just seems like some of these choices I would be in at 20+% and each and that makes their performance very critical, and also more volatile.
