My employers list of mutual fund offerings - can you help me select some?

Comments

• jerry

  March 2013 edited March 2013

  I think I would go with all the index funds but after that the more important question is what proportion of each fund would be appropriate. The "book" answer would be ,especially since you are clearly conservative something like , 60% in pimco total return, 25% in the vanguard index 500, and 5% each in the international, midcap and small cap indices.
  If you want to keep it much simpler 60% pimco total return and 40% inst index is less diversified but probably will work out fine.
  I am given to understand that in general TRP target retirement funds are superior to those of Fidelity but I would suggest that If you pick a TRP fund in your rollover IRA that you might be better off with the 2010 or even the 2005 fund as the asset allocation would be more in line with your risk tolerance. For any given age TRP is less conservative than Fidelity or Vanguard target retirement funds.
• fundalarm

  March 2013 edited March 2013

  @jerry:

  If you pick a TRP fund in your rollover IRA that you might be better off with the 2010 or even the 2005 fund as the asset allocation would be more in line with your risk tolerance.

  2005, 2010 and income fund have all now converged. at the end of 2015, TD2015's asset allocation will converge with them as well....that's how the glidepath works.
  
  Otherwise, i agree with the majority in PTTRX and indexing. i would however, have a few % points in OPP DEVELOP MKTS Y. very good fund and not easy to get to outside of retirement accounts.
• bee

  March 2013 edited March 2013

  Hey Daves,
  
  I started thinking about retirement about age 35 and though I have personally retired from my "career" I haven't retired as far as the government (IRS) is concerned (age 59.5). You mentioned you are 6 years from your "personal retirement", but as far as the IRS is concerned, you have reached "distribution age" (59.5). At age 70 (4 years after your personal retirement) you will be faced with RMD (Required Minimum Distribution). Be prepared for this fact. If you have been diligent with your IRA funding over the years give some thought to other uses for your labor.Take some time and run some numbers and decide if you are better off deferring money ( investing in your employer's IRA) at age 60 when 10 years later it will be impactd by RMD (4 years after retirement).
  
  If I were age 60 I would rather spend the next 6 years maxing out my Roth as a primary goal which faces no RMD. If your employer matches any IRA contributions then, by all means, take advantage of that.
  
  At sixty you might consider devoting some resources to Long Term Care Insurance or creating and funding a retirement lifestyle account. For example, I used taxable income that I did not invest in an IRA to buy a condo in Florida that is 2 miles to the beach. It sold for 1/5 what it was selling for in 2008. That has more long term value that stocks and bonds in my estimation.
  
  My retirement funds will pay for my daily needs (makes sure yours will), but I needed cash to make the purchase of the condo. Never underestimate the value of cash. The stock and bond market (mutual funds) is not the only place where value can be found.
  
  Good Luck!
• MaxBialystock

  March 2013

  First, I would narrow things down further, getting an answer to the question: which of these can I get with no up-front load? Or it may be that because it is a retirement 401k vehicle, the funds that would otherwise charge an up-front load simply do NOT, in this case.
  
  My brother has 401k money in this one (Mainstay) which looks like just a different class of shares than the one you listed, above. http://quotes.morningstar.com/fund/mlabx/f?pgid=hetopquote&t=mlabx
  
  ...3 stars at Morningstar, and a Bronze decoration. Not horrible. I am 58, retired early, wife works. I'm 50/50 bonds/stocks. That's how I've got my stuff situated, and heavily overweight in global/international funds. I am aware that others would tell you that such a strategy is not prudent.
  
  I tend to like VALUE over growth, and I see an MFS VALUE "R4" (?) fund listed above, but cannot tell you anything about it. And Harbor International looks good. It has a good LONG-term reputation. I dunno how well it's doing lately.
• Flack

  March 2013

  Daves,
  
  For me, your request just raises a lot of questions.
  
  Since you’re looking for a conservative mix of funds, I’m guessing
  that you have already saved 8 to 9 times your current family salary and
  have very little or no debt.
  If not, why select a conservation selection of funds?
  
  I see these “help me pick” questions quite often but seldom do I see
  someone explain their investment plan.
  What is your plan for the next 6 years … and then beyond?
  Will you still be comfortable retiring at 66 if you have zero returns
  before retirement?
  What are your plans if the market declines and your portfolio drops
  20 or 30% over the next 6 years?
  What is your plan if the market drops 20%, 30%, or more in your first
  year of retirement?
  
  If you’ve already accumulated nearly enough to retire on, the selection of funds
  is less important than have a well-constructed long-term investment plan.
  Pick an equal mix of stock and bond index funds. Then follow your plan.