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Changed My 401k Allocation Today
Old 03-23-2006, 01:48 PM   #1
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Changed My 401k Allocation Today

I have been 100% S&P 500 index with my 401k the last few years.* I felt like I needed to diversify a little bit, even though I was fine with S&P.* My age is 33 and I have about $50,000 in 401k so far.* I am now contributing 20% of my income to it which gets me almost to $14000/yr.

Here's how I divided it today:

50% S&P 500 index
30% Russell 2000 index
20% International index

I went with the 3 indexes offered through our program for now.* Any thoughts about how I have it divided up?

Our Company offers the following investment options-

Lifecycle Funds:
Lifecycle Retirement Fund
Lifecycle 2010 Fund
Lifecycle 2020 Fund
Lifecycle 2030 Fund
Lifecycle 2040 Fund

Indexed Funds:
Bond Market Index Fund
Balanced Index Fund
S&P 500 Index Fund
International Index Fund
Russell 2000 Index Fund

Actively managed:
VIP Stable Value Fund
Large Companies Value Fund
Large Companies Core Fund
Large Companies Growth Fund
Large Co. International Fund
Small/Mid Co Value Fund
Small/Mid Co Growth Fund
Science and Technology Fund

Boeing Stock Fund

I am relatively new to allocating investments and was looking for some opinions.

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Re: Changed My 401k Allocation Today
Old 03-23-2006, 02:06 PM   #2
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Re: Changed My 401k Allocation Today

Did you read this: ?

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Re: Changed My 401k Allocation Today
Old 03-23-2006, 02:08 PM   #3
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Re: Changed My 401k Allocation Today

Sounds fine to me. I guess I might be inclined to suggest dropping the S&P 500 fund down 10 or 20% in favor of the stable value fund, but its fine the way it is if you have a reasonably high risk tolerance.
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Re: Changed My 401k Allocation Today
Old 03-24-2006, 10:21 AM   #4
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Re: Changed My 401k Allocation Today

It's difficult to comment on you allocation since you do not state what your entire portfolio looks like. If this is all that you have in investments, it may be too agressive as 100% equities seldom rewards the risk taker with returns that reflect this much risk.
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Re: Changed My 401k Allocation Today
Old 03-24-2006, 11:29 AM   #5
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Re: Changed My 401k Allocation Today

At your age 100% equities may be OK but remember to diversify a bit in the coming years. And look closely at the Lifcycle funds, if you want to be more agressive just chose one further out than your anticipated retirement date. These are usually diversified and rebalance and shift asset allocations as they age. I have 85% of my 401k type account (TSP program) in a Lifcycle fund. But you want to consider any other holdings in Roths, after tax funds, and cash to fit everything together.
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