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How many have 401k in one fund?
Old 02-16-2009, 09:19 AM   #1
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How many have 401k in one fund?

Just wondering how many have their 401k in one fund, and if so what fund is that and why? We have a lackluster plan but we have the Growth Fund of America so I put 100% in there. I am not really a fan of diversification but this fund has as much as I can stand, both domestic and foreign as well as lots of cash.

Dave
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Old 02-16-2009, 10:33 AM   #2
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Originally Posted by dougie790 View Post
Just wondering how many have their 401k in one fund, and if so what fund is that and why? We have a lackluster plan but we have the Growth Fund of America so I put 100% in there. I am not really a fan of diversification but this fund has as much as I can stand, both domestic and foreign as well as lots of cash.

Dave
I have 85% of my TSP (=401K) in the G Fund, and plan to have it all in the G Fund as soon as the market will allow me to get rid of 15% in equity funds. The G fund is a treasury bond fund not available to the general public.

My portfolio is very diversified as a whole, but mostly taxable. Usually it is considered advisable to put bond funds in retirement accounts, for tax purposes. Putting my TSP into the G Fund does not imply that I am not properly diversified.

If you would like to have your 401K all in one fund, why not look at target retirement funds? There you have professional money managers rebalancing for you. Another balanced fund that I happen to particularly like is Vanguard's Wellesley (VWINX/VWIAX).
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Old 02-16-2009, 10:59 AM   #3
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Thanks for the response. Our plan does not offer those, but we have portfolios made up of the funds it has, with no allocation modification. I do not like those funds anyway. I must confess I hate mutual funds with a passion, so even putting money in this one is hard, but I have to put it somewhere. The Growth fund is the cheapest fund available, even cheaper than the 500 index option and has a good track record for thirty some years. This is one of the few good companies around with Vanguard the other and maybe Dodge and Cox. The fund is huge and bloated but I think they handle it ok and plus I think a lot of people bailed last year. I am hanging on for as long as I am in the plan, then it is rollover and buy some good dividend stocks. Also, I like simplicity.
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