Hello all, how are all of you doing? I have already posted in the Bogleheads sub but i would like to hear the suggestions from this sub as well in regards to my current 401k allocation. I will be providing important details pertaining to my 401K's asset allocation for your convenience.
I am 33 years old. I have a Roth 401(k) through work getting the full company match with an 8% rate. FYI, rather than managing myself, I am enrolled in Professional Management which is Alight Financial Advisors and they make the investment choices for me. Hence, I am paying a small amount of fees. Anyways, the distribution looks like this:
| Asset Class | Current Mix |
|---|---|
| Balanced – HISP (My company's saving plan) Balanced | 9% |
| Bond – HISP U.S. Fixed Income | 7% |
| Large U.S. Equity – HISP U.S. Large Cap Equity Fund | 35% |
| Mid U.S.Equity – HISP U.S. Small-Mid Cap Equity Fund | 19% |
| International – HISP Developed International Equity Fund | 22% |
| Emerging Markets – HISP Emerging Markets Equity | 8% |
| Stock – HISP Huntington Ingalls Stock | 0% Alight didn't put any funds into the stock |
I am also providing the fund performance for each investment type:
| Asset Class | Average Annual Return |
|---|---|
| Balanced | 1Y 17.68%; 3Y 3.34%; 5Y 8.42% |
| Bond | 1Y 7.24%; 3Y -2.16%; 5Y -9.00% |
| Large U.S. Equity | 1Y 27.05%; 3Y 9.32%; 5Y 15.84% |
| Mid U.S. Equity | 1Y 20.84%; 3Y 0.18%; 5Y 11.11% |
| International | 1Y 19.81%; 3Y 4.49%; 5Y 8.88% |
| Emerging Markets | 1Y 13.87%; 3Y -3.50%; 5Y 4.42% |
| Stock | 1Y 30.65%; 3Y 13.56%; 5Y 8.38% |
Expense ratios for all the funds are below:
| Asset Class | Expense Ratios |
|---|---|
| Balanced | 0.11% |
| Bond | 0.08% |
| Large U.S. Equity | 0.07% |
| Mid U.S. Equity | 0.08% |
| International | 0.10% |
| Emerging Markets | 0.14% |
| Stock | 0.10% |
Portfolio Details:
2024 Return – 12.28%
As of Sep 13, 2024
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|Opening Balance|$29,491.21|
|Gain|+ $4,300.24|
|Other Activity|+ $9,391.32|
|Closing Balance|$43,182.77|
Now that I provided all the details, my burning questions are following:
- Should I make any changes to the allocation or it looks fine? Maybe put 100% funds into the Large U.S. Equity? Or Better diversify across all types of funds?
- Going over many reddit posts and youtube videos, it is recommend to have almost 100% invested into the equity and 5% to the bond or maybe not all to the bond. And what is your opinion about not putting money at all into the International equity fund? Feeling like I am answering my own questions haha.
- Last but not least, should I keep Alight managing this allocation or start managing it myself to avoid the fees?
Advanced apologies for asking any stupid questions lol as I am new in this territory. Please let me know if you need any clarifications. I'll do my best to respond to it. Thanks and looking forward to hearing you soon.
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