Hi,

I have a couple of questions for those more financially savvy than I am. My company's 401K is with Fidelity, and my contributions are allocated across the following funds:

• Fidelity 500 Index Fund (FXAIX)
• American Funds New Perspective Fund R-6 (RNPGX)
• Fidelity International Index Fund (FSPSX)
• Macquarie Mid Cap Growth Fund R6 (IGRFX)
• Fidelity Small Cap Index Fund (FSSNX)
• T. Rowe Price All-Cap Opportunities Fund (PRWAX)

I'm 50, not overly concerned with retirement savings, and initially chose these funds based on their low costs. Over four years, I've built up $160K in this 401K (spread across employee deferral, Roth, and after-tax contributions).
Performance Overview:

• 3-year cumulative return: 6.66% (Like many, I've taken a recent hit but am not panicking).
• IGRFX has been the primary laggar
• I noticed the 401K rebalance option and wasnot sure I am touching this unless consensus is I need to reduce risk or diversify

I'm sure there are a few experts out there and I'm simply looking for inputs on my fund selection and allocation that could help better secure a healthy retirement. "Maybe the simple answer is keep doing what your are doing.."

Appreciate any insights!

The rebalance periodically goes back and adjusts your holdings to keep you in line with your allocations.

Say you have it set to invest:
40% in X
35% in Y
25% in Z

At the end of the year funds go up, funds go down, some out perform and some underperform...
So now your actual holdings are:
36% X
42% Y
22% Z

It buys more X to get you back to 40%
It sells some Y to get you back to 35%
It buys some Z to get you back to 25%

I'm not an investing savant, but I'd want to know why some of my chosen funds were laggards. It seems to me that rebalancing is selling my over performers and buying my laggards. The better question might be do I even want to stay in those underperforming funds or do I need to get out.

My employer uses Insperity. Maybe it's better than I give them credit for...
I just logged into my portal and my 3 yr annualized RoR is 15.2% the cumulative 3 year return is 38.2%
(20% Allocated, 19.5 act) SSGA Global All Cap Ex-US Index
(40% Allocated, 37.3 act) SSGA Russell Small/Mid Cap Index
(40% Allocated, 43.2 act) TRowe Blue Chip Growth

If you don't need it within 5 years, then S&P. Even with the recent decline, your last 3 years return would have been 25% with that approach, not 7%.

Ragoo said:

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Agree. Put it all in FXAIX and dont worry about it.

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Nailed it

thanks for the info!

Keep. Sp500, mid cap, and small cap. Sell the others and put in sp500. Ignore it for 12 more yrs