Thank you for the help and guidance.
My plan has a bunch of JP Morgan Smart Retirement 20** I Fund based on targeted retirement date. I personally selected 2020 and 2025 based on my estimated anticipated retirement date (maybe in 5 years if possible?)
Yeah... I think you are right with the a lot of company overlap, something that my Principal representative told me as well. I think she thought that I should just select one target balance fund. I'm quite the novice in this stuff, but only started to study it when the balance grew based on company stock distribution (a no brainer - just happened). When our private company stock went public (IPO) a few years ago, I anticipated the enormous growth rate would disappear. Mentally, which probably makes no sense, I selected a wide diversity of mutual funds... out of the simple safe-guard of diversity. It's seems to work in my scenario.
I have nothing in Short Term Fixed Income or Fixed income or International stock categories. I transfer company stock every time I receive it quarterly.
What is the advantage and purpose of reducing mutual fund choices from 12 to about 4 to 6 selections? Thanks again, I am listening... and i have been reading a lot of investment and retirement books as well. However, this forum site is great to get live feedback from those with a lot more wisdom than me on this stuff.
Of the 28 fund choices, at least a dozen are target funds. Conventional buy/hold strategy might tell you to put all in one target fund.
Another buy/hold strategist might tell you to invest in 3 funds: Total U.S. Stock, Total International, and Total Bond.
A third strategist might advise to break down the above 3 choices to: US Large Cap, US Small/Mid Cap, Foreign Developed Markets, Emerging Markets, Short Term Bond, Stable Value.
Keep reading and searching, as it all makes sense after you invest the effort. As for number of funds:
Too Many Mutual Funds?
I'm thinking that you are under the impression that buying more funds makes you more diversified. That is not always the case. It could be the case for you, but doesn't have to be...
At 53 I knew very little about investing. We were very much behind the eight ball, with one going to college, and one not far behind. I read online, discussed in forums, and set an allocation. Over a 7-8 year period we've adapted to changing times, but I still have the same belief in buy/hold, especially for mutual funds.