Re-balance 401k

[corn18]

I usually re-balance my 401k this time of year. It's when my bonus comes in and the 401k gets a large bump. This morning, I was invested in 22 different funds and couldn't tell what my allocation was. I went to this:

STOCK fund name, percent invested (fee) [monthly contribution]
American Funds Growth Fund of Amer R6 5% (0.34%)
Dodge & Cox Stock 9% (0.52%)
SPARTAN 500 index 20% (0.05%) [20%]
SPARTAN mid cap index 8% (0.22%) [20%]
SPARTAN small cap idx 4% (0.33%) [20%]

INTERNATIONAL STOCK
SPTN XUS IDX ADV 7% (0.28%) [20%]

BALANCED (60% stock, 40% bond)
FID Balanced K 29% (0.47%)

BOND
BLKRK High yeild BD BR 20% (0.56%) [20%]

Risk Analysis

Overall, this now puts me @ 70% stock, 30% bond. I think I should take a lot more risk in my 401k as this is balanced by my no risk military pension. If we had to, we could live off my military pension ($45k / year). So I view the pension as my low risk and 401k can be all risk.

So, what are your thoughts on this?

Fund Analysis

What do you think of these funds? They have the lowest load on Fidelity offered for my 401k.

My thoughts

If it were up to me, I would move all the bond fund $$$ to the S&P 500 index fund. Then reduce the Fidelity balanced K by 50% and move that to one of the stock funds. Then stop contributing to the bond fund and put that into one of the stock funds.

Tom

[lorraineb]

What's the timeline for these investments? It seems to me with what you have listed and the military pension that you could get away with more risk.

[corn18]

I'm 48, so let's figure 14 years minimum, 20 max for a timeline.

[feh]

I suggest you look at your entire portfolio when rebalancing. Is there a reason you're analyzing just your 401K?

[corn18]

I suggest you look at your entire portfolio when rebalancing. Is there a reason you're analyzing just your 401K?

Yup, the only savings I have right now is my 401k and pension.

[feh]

Yup, the only savings I have right now is my 401k and pension.

Ok, gotcha.

I think your AA is fine, although only you can answer that question. It's all about risk tolerance - you don't want to panic sell if the markets take a nosedive.

[corn18]

Ok, gotcha.

I think your AA is fine, although only you can answer that question. It's all about risk tolerance - you don't want to panic sell if the markets take a nosedive.

I want to calmly buy if the markets take a nose dive.

[Randomsaver]

Whoa that's a lot of instruments to track. Mine I keep simple, just 1 for each small mid and large; and I could not perceive the difference, they seem to follow the Dow Jones movement all the same.

[JoeP]

You might want to take a listen to a radio show called The Mutual Fund Show which can be found on AM radio. You can also download previous shows. They have people calling up with all kinds of scenarios, and I'll bet after a couple shows, you'll hear at least one caller with your identical situation. You'll also get some insight into some of the funds you're considering.