UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next
Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75383  
Subject: Re: 401k investment allocations? Date: 6/26/2011 1:38 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
I think you are doing fine. You should be 100% in equities at your age, and the ones you have chosen are reasonable.

You know Boeing's prospects better than I do. They are an industry leader and a major exporter. That is a great combination. And for now when you are just beginning, its OK to build a solid position in Boeing stock--especially with the extra incentives they give you.

In time (and especially as you get closer to retirement) you will want to trim your company stock holdings to something more reasonable. Once you get to say two years gross pay in your VIP plan, I'd say keep your Boeing stock down to about 30% of your holdings.

It looks like the funds you are offered are custom for your plan, and not public mutual funds you could check out on Morningstar.com. None the less the company should give you performance information for the funds over say the last 10 years. You could compare those numbers to those of 4 or 5 star funds in Morningstar to see that they are performing well compared to the average fund in the category (indicating a well managed fund). Avoid the under achievers.

Your S&P 500 Index fund is a safe bet for your equity investments other than Boeing stock. But if other equity funds in your plan offer better performance, by all means try them.

The main thing is keep an eye on your funds to make sure they perform as they should. As long as they perform keep them. If they under perform, find something better.

In time you can add more funds as your account grows, but try to own the best performing funds. You are offered several international funds. Which one performs best? Small cap, Russell 2000, Science and Technology have interesting names and might perform well from time to time, but check out their numbers before you decide.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement