My brother, who is 26 yo works full-time for the State of Wisconsin. He knows I am a trader and investor. He sent me a screenshot of his investment portfolio through what he invests in at work (they call it a Deferred Compensation program – labeled a 457b which is basically a 401k. I am asking if anyone on here would alter any of the investments or just leave it? He by default has the people at Deferred Compensation manage his portfolio for him. Below is what his portfolio looks like:
28.85% BlackRock EAFE Equity Index F
16.99% Vanguard Institutional 500 Index Trust
13.95% BlackRock Mid Cap Equity Index – Coll F
9.84% BlackRock US Debt Index M
8.96% Vanguard Wellington Adm
21.4% Other Investments
I am so used to looking at a Schwab or TD Ameritrade account for coworkers or friends and just telling them to throw 30% in VOO, 30% in VT, 30% in VTI, and the remaining 10% in bonds (personal favorite is VBTLX). Then I come across my brother's 457b account and suddenly see all of this and after doing some research am not sure what to even tell him. To clarify – the “other investments” I thought would be a mix of bonds, they are not. They are just even more equity indexes. Kind of surprised to see that Deferred Compensation offers bonds if you want to save the $1 commission fee each month. However it appears no bonds are in the portfolio by default if you let them invest for you. He is 26, has about $15k in his account, and with that said maybe bonds are not needed for someone in their 20s? I am 29 and believe every portfolio should be 5-10% bonds.
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