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Old 03-16-2012, 07:11 PM
 
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I am a 34 year male. Target age to retire is at 55.

Vanguard Small-Cap Index Fund Institutional Shares 35%

Spartan International Index Fund - Fidelity Advantage Institutional 33%

Vanguard Total Stock Market Index Fund Institutional Shares 22%

Spartan 500 Index Fund - Institutional Class 4%

Company stock 6%

I use Financial Engines and that is how it chose my allocations.

I am 100% in Stocks now.

Any suggestions?
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Old 03-16-2012, 07:39 PM
 
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for starters having a total market fund and and s&p 500 fund is useless. 80 % of the weight of the total market fund is the s&p500.

whats the plan if slow growth and prosperity are in the cards? how will your momney keep growing and with what asset classes?
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Old 03-16-2012, 07:41 PM
 
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Well I would say that it really depends on what happens to healthcare on that 55 retirement. If I were your age with my company having adopted the new healthcare mandates :I would not have any contribution from them when I retired. I could stay in the pool but all cost would be mine which amount to 1227 a month a person. If I stayed working until 65 it would be medicare and nothing else. So I think perhaps you need to think about a Medical saving plan besides if you want to retire at 55.
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Old 03-16-2012, 08:01 PM
 
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Quote:
Originally Posted by mathjak107 View Post
for starters having a total market fund and and s&p 500 fund is useless. 80 % of the weight of the total market fund is the s&p500.

whats the plan if slow growth and prosperity are in the cards? how will your momney keep growing and with what asset classes?
S&P 500 is diversified. How is it slow growth?
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Old 03-16-2012, 08:03 PM
 
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Quote:
Originally Posted by texdav View Post
Well I would say that it really depends on what happens to healthcare on that 55 retirement. If I were your age with my company having adopted the new healthcare mandates :I would not have any contribution from them when I retired. I could stay in the pool but all cost would be mine which amount to 1227 a month a person. If I stayed working until 65 it would be medicare and nothing else. So I think perhaps you need to think about a Medical saving plan besides if you want to retire at 55.
My health at 55? Well, I have ESPP through my employer and I use a little bit there. I don't see why I would risk even 6% on one company stock in my 401K but that is what Financial Engines picked out. The software shows I am on a pace to have $1.1 Millon by age 55.
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Old 03-16-2012, 08:50 PM
 
Location: Wouldn't you like to know?
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Quote:
Originally Posted by Info Guy View Post
My health at 55? Well, I have ESPP through my employer and I use a little bit there. I don't see why I would risk even 6% on one company stock in my 401K but that is what Financial Engines picked out. The software shows I am on a pace to have $1.1 Millon by age 55.
What % return did they figure for you to get to 1.1 million?

Also, you have to remember, 20 yrs from now a million bucks will be worth a lot less than a million today....
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Old 03-16-2012, 09:21 PM
 
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Originally Posted by CouponJack View Post
What % return did they figure for you to get to 1.1 million?

Also, you have to remember, 20 yrs from now a million bucks will be worth a lot less than a million today....
The average market return overall. It took bunch of scenerios like the FireCalc. No one knows what inflation will be in 20 years. Just take the average for the last 20 years. Standard is 3%.
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Old 03-17-2012, 02:14 AM
 
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Originally Posted by Info Guy View Post
S&P 500 is diversified. How is it slow growth?
i was refering to the economy when i said slow growth.

no the s&p is not diversified. its strictly large cap stocks , its all equities and it counts on the economy seeing prosperity to grow. where are your other asset classes that go up when the market goes down?

if you think your going to time things in and and out you got a lot to learn yet about markets and market psychology
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Old 03-17-2012, 01:44 PM
 
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Quote:
Originally Posted by mathjak107 View Post
i was refering to the economy when i said slow growth.

no the s&p is not diversified. its strictly large cap stocks , its all equities and it counts on the economy seeing prosperity to grow. where are your other asset classes that go up when the market goes down?

if you think your going to time things in and and out you got a lot to learn yet about markets and market psychology
I am taking advantage of DCA when the market is down. I don't want to time when it comes to 401K. All I am doing is relocating assets.
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Old 03-17-2012, 07:29 PM
 
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Quote:
Originally Posted by Info Guy View Post
I am a 34 year male. Target age to retire is at 55.

Vanguard Small-Cap Index Fund Institutional Shares 35%

Spartan International Index Fund - Fidelity Advantage Institutional 33%

Vanguard Total Stock Market Index Fund Institutional Shares 22%

Spartan 500 Index Fund - Institutional Class 4%

Company stock 6%

I use Financial Engines and that is how it chose my allocations.

I am 100% in Stocks now.

Any suggestions?
The Vanguard Total Stock Market Index and the Spartan 500 Index have a lot of overlap. There is also overlap between the small cap indx and the total stock market index. Also, I'd ditch the company stock.

I'd also have a certain % in bonds (maybe 20%), preferably a global bond fund if you have one in your plan (Templeton Global Bond is great if you can get it). If not, an intermediate term bond index would work if you have one of those.

I'd say your allocation should look like this:

Small Cap Index 35%
Bond Fund 20%
Fidelity S&P 500 Index: 45%

If you have gold or real estate funds, those would also be great to add in. If you have those I'd do 5% for each of those and have 35% in the S&P 500.
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