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Relatively poor funds in 401k - Need help

mrc70
in Fund Discussions
Hi,

Could you please help me in identifying better choices in the following? I have IRAs with Vangard and TDA, where I have superb choices and invested in funds ike VDIGX, VHCOX, ARTKX, FPACX, AKREX, SFGIX, GPGOX, etc.

There are some good funds like OAKBX, Janus Enterprise, V'rd health care, bond funds, index funds, etc. in this list, but overall disappointing choices in my opinion.

I am comfortable with my allocation %ages for various asset classes, so where I need the advice is just in identifying good funds, not overall asses allocation. Appreciate all of your help.

LCap
****
Janus Enterprise Fund Class N (JDMNX) Stock
American Beacon Large Cap Value Fund Class Institutional (AADEX) Stock
Fidelity® Capital Appreciation Fund - Class K (FCAKX) Stock
Fidelity® 500 Index Fund - Institutional Class (FXSIX) Stock
Fidelity® Large Cap Growth Index Fund - Premium Class (FSUPX) Stock
Fidelity® Large Cap Value Index Fund - Premium Class (FLCHX) Stock

MCap
****
Fidelity® Mid Cap Index Fund - Premium Class (FSCKX) Stock
MFS Mid Cap Value Fund Class R6 (MVCKX) Stock
Fidelity® Extended Market Index Fund - Premium Class (FSEVX) Stock

Scap
****
Northern Small Cap Value Fund (NOSGX) Stock
Loomis Sayles Small Cap Value Fund Class N (LSCNX) Stock
UBS U.S. Small Cap Growth Fund Class P (BISCX) Stock
Fidelity® Small Cap Index Fund - Premium Class (FSSVX) Stock

Balanced
********
Oakmark Equity And Income Fund Investor Class (OAKBX) Blend

Sector
******
Cohen & Steers Realty Shares Fund (CSRSX) Stock
Vanguard Health Care Fund Admiral Shares (VGHAX) Stock

International/Global
********************
Deutsche Global Small Cap Fund Institutional Class (KGDIX) Stock
Invesco Developing Markets Fund R5 Class (GTDIX) Stock
Fidelity® International Discovery Fund - Class K (FIDKX) Stock

Bonds
*****
Fidelity® Total Bond Fund (FTBFX) Bond
Vanguard Inflation-Protected Securities Fund Admiral Shares (VAIPX) Bond

Money Market
************
Putnam Stable Value Fund Bond
Fidelity® Investments Money Market Government Portfolio - Class I (FIGXX) Short Term

Retirement Series
*****************
FIAM Target Date 2060 Commingled Pool Class S Blend
FIAM Target Date 2055 Commingled Pool Class S Blend
FIAM Target Date 2050 Commingled Pool Class S Blend
FIAM Target Date 2045 Commingled Pool Class S Blend
FIAM Target Date 2040 Commingled Pool Class S Blend
FIAM Target Date 2035 Commingled Pool Class S Blend
FIAM Target Date 2030 Commingled Pool Class S Blend
FIAM Target Date 2025 Commingled Pool Class S Blend
FIAM Target Date 2020 Commingled Pool Class S Blend
FIAM Target Date 2015 Commingled Pool Class S Blend
FIAM Target Date 2010 Commingled Pool Class S Blend
FIAM Target Date 2005 Commingled Pool Class S Blend
FIAM Target Date Income Commingled Pool Class S Blend



Comments

  • msf
    What I've done when investing in vehicles with limited menus is pick the best they had to offer and then round out my portfolio elsewhere.

    Since you say there are a number of good funds in the 401k even if it doesn't offer you a complete array of first rate choices, you can start with those funds. Then adjust your IRAs to give you your desired portfolio allocation.

    That is unless there's a particular reason why you want to treat these as separate portfolios. For example, you might be planning to retire at age 55 and draw on the 401k for the first few years. You can do that without penalty with a 401k, but you generally have to wait until age 59.5 to get money out, penalty-free, from an IRA.
  • MikeMMikeM
    I think the funds available are a very small part of the total return outcome over time. Putting together a good diverse portfolio and not screwing things up by trying to time the market will be 90% of your profit. I see index funds and a nice balanced fund, including retirement funds on the list. Hard to beat.
  • Edmond
    mrc, first, I'd 'second' msf's comments about picking the best available choices in the 401k, then rounding out elsewhere.

    Beyond that, except for the absence of a stable-value fund, I am salivating at your plan choices. You have low-cost index funds for L/M/S-caps. You have 2 decent bond choices, 2 very good sector funds, and a good balanced choice.

    I think you are being too 'hard' on your plan. I think they have given you a stable of good 'core' options. Maybe... maybe they are lacking in not offering a junk bond vehicle, but that is a minor point.

  • JohnChisum
    The choices you have are not the worst by far but it is what it is. One idea would be to use index and growth funds for your 401k and pick Good international funds with your ira. Be sure to include both into one portfolio. Dividing your investments makes things confusing.
  • mrc70
    Thank you all!

    Based on the responses I have seen so far, probably, I am expecting too much from a typical 401k as far as fund options are concerned. My previous 401k was horrible with just one American fund for entire International/Global/EM asset classes. When I questioned, our company rep for 401k told me that 'we invest conservatively'. Never expected such nonsensical reply. However, we were given a choice to open brokerage a/c with TDA.

    I am passionate individual investor and read many books on investing and asset allocation to educate myself since 2004. Having started investing from 2000, and following M* forum and Fund Alarm/MF Observer since 2004, I know a bit about asset allocation. I have close to 20 funds as I have 5 IRA/Roth IRA accounts across V'rd and TDA for me and my wife. Overall it is a very diversified portfolio with Global, US LCap/MCap/SCap, International, EM, and Bond funds.

    Based on what funds I chose in this 401k account, as you suggested, I may have to adjust my IRA accounts to ensure that my overall portfolio is well balanced with the best funds chosen in the available options.

    Fidelity Index funds, bond fund, OAKBX are solid options. Looking at M* statistics, Janus fund, Northern small cap, both section funds (if I decide to invest in them), and Invesco Developing markets funds seem to be good choices. Since I don't know much about these funds, looking for expert comments from those of you, who know more about them.

    Appreciate your help.

    Thanks,
    Mrc

  • JohnChisum
    Sounds like a good plan. Remember, the discipline of funding your retirement accounts as much as possible is the biggest objective. Second is to adjust your Fed withholdings so you get as close to break even as you can. So many get huge refunds each spring that instead can be working in your retirement investments instead.
  • jerry
    I think you eventually reached a good conclusion . I think your 401k choices are superb compared to some I have seen and you should be able tp find several good choices.
  • Sven
    @mrc70, You are getting excellent advices from many experienced investors here. Overall, the choices in your 401(K) plan are actually pretty good. Fidelity's index funds offer low expense ratio and they should form the basis of your 401(K). One sector fund I like is Vanguard Health Care Fund Admiral Shares (VGHAX) Stock. Not so much of Cohen & Steer.

    You can then add other funds from other IRAs you have to round out the entire portfolio.

    As for other choices you posted, take a look at their performance in the bear market, 2008 and 2001 relative to their respective indeces. Also make sure if the same management team was in place during those period. If not, I would be careful of the performance track record.
  • kevindowkevindow
    @mrc70,

    As I see it, you have a much better than average selection of funds in your retirement plan. With your selection, I would probably pick one fund and use my other retirement accounts to complete the portfolio.

    I am a federal employee, and I have a limited but a more than adequate selection of funds in our Thrift Savings Plan (TSP), which have an average expense ratio of a crazy-low 0.029%.

    Right now I have 100% of my TSP in the "S" fund, which is comparable to your FSEVX. Based on technical analysis, I shift assets between the TSP "C" fund (S&P500 equivalent, FXSIX) and the "S" fund, and use my other retirement accounts to fill out our portfolio.

    If you have a position in PRWCX, then I would not bother with OAKBX, And SFGIX is a much better option in EM than GTDIX. And for FI, I would stick with PIMIX, and maybe WHAIX, and call it a day.

    Kevin




  • mrc70
    Thanks John, Jerry, Sven, and Kevindow! Thank you all once again.
    You guys are awesome. Once I allocate, juggle my portfolio, I will provide an update.
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