Help in allocating funds in 401k

[jsk]

Hi

I am in 40s and have about 120k in my 401K. Though i keep reading about articles, i get lost when it comes to investing for retirement. At present these are my funds in voya and not working now. So no new contributions. I don't want to withdraw from this fund atleast until another 20 years.

Are these good or do i need to reallocate ?

PGIM High Yield Fund - Class R6 - 6589 ($16,800.09 )
Fidelity® 500 Index Fund - C975 ($47,118.65 )
Fidelity® Mid Cap Index Fund - D122 ($14,153.93 )
ClearBridge Small Cap Growth Fund - Class IS - 3497 ($19,583.61 )
Vanguard® Total International Stock Index Fund - Adm™ Sh - 9889 ($27,767.29 )

Much appreciate help.
Thanks

[corn18]

Hi

I am in 40s and have about 120k in my 401K. Though i keep reading about articles, i get lost when it comes to investing for retirement. At present these are my funds in voya and not working now. So no new contributions. I don't want to withdraw from this fund atleast until another 20 years.

Are these good or do i need to reallocate ?

PGIM High Yield Fund - Class R6 - 6589 ($16,800.09 )
Fidelity® 500 Index Fund - C975 ($47,118.65 )
Fidelity® Mid Cap Index Fund - D122 ($14,153.93 )
ClearBridge Small Cap Growth Fund - Class IS - 3497 ($19,583.61 )
Vanguard® Total International Stock Index Fund - Adm™ Sh - 9889 ($27,767.29 )

Much appreciate help.
Thanks

Can you list all of the available funds and the expense ratio for each?

[disneysteve]

Do you have any other investments outside of this account? If so, how is that allocated?

Looking at this account alone without that information, overall you're about 13% bonds, 87% stocks. Not a bad allocation in your 40s.

Are you happy with the expenses on this account? If not, since you're no longer working for that employer, you could consider rolling it over to an IRA where you'd have much more flexibility in how things are invested and many more choices.

[Like2Plan]

Some questions for you: What is your overall desired asset allocation? What are the funds available to you in your 401K? What is the expense ratio (ER) for each fund you have available to you?

For the PGIM High Yield Fund, it looks like the objective is "Seeks to maximize current income by investing primarily in high-yield bonds rated Ba or lower by Moody's or BB or lower by Standard & Poor's. Capital growth is a secondary goal." This tracks with the credit quality of the underlying investments (snapshot as of 12/31/2020): This would be more risk than I would be willing to take on for a bond fund , but maybe it is not that big of a deal for you?

"Credit Quality (% of Assets)
AAA
1.8 %
BBB
4.3 %
BB
41.9 %
B
31.4 %
CCC
13.2 %
CC
0.1 %
C
0.1 %
D
0.1 %
Not Rated
2.6 %
Cash/Equiv
4.4 %

https://www.pgim.com/investments/mutual-funds/pgim-high-yield-fund?utm_medium=cpc&utm_source=GOOGLE&utm_campaign=PGIM%20Investments_B2B_Unkwn_Mutual%20Funds_High%20Yield_Brand_Exact&ds_cid=71700000072425957&utm_content=High%20Yield%20-%20PGIM&ds_agid=58700006342882998&utm_term=pgim%20high%20yield%20fund&ds_kid=43700057232779636&matchtype=e&network=g&adposition=&gclid=CjwKCAiAo5qABhBdEiwAOtGmbuG_PI0yTvuBkCLufnNgF7S9I98yjTuyYVsRRbX5S5TBTapHPxcR3BoCh1cQAvD_BwE&gclsrc=aw.ds

Otherwise, the Fidelity and Vanguard are very good funds. Are you trying to replicate the total stock marked with your choices? Here is an article on approximating the total stock market: https://www.bogleheads.org/wiki/Appr...l_stock_market
It looks like you are Fidelity 500-58%, Fidelity mid cap-17% and small cap- 24% right now. So, a little more weighted in small and mid caps than what the total stock market would be, but maybe that is your objective?

[jsk]

Can you list all of the available funds and the expense ratio for each?

Sure, will find out and share it in a day

[jsk]

Do you have any other investments outside of this account? If so, how is that allocated?

Looking at this account alone without that information, overall you're about 13% bonds, 87% stocks. Not a bad allocation in your 40s.

Are you happy with the expenses on this account? If not, since you're no longer working for that employer, you could consider rolling it over to an IRA where you'd have much more flexibility in how things are invested and many more choices.

i do have a house and that is being rented out. Since i am in a different place, i pay rent where i stay. It kind of matches up. I didn't check the expenses. These are the selection automatically done , based on my preferences by the tool. Every time, i think i should do myself by back out . This time, i am determined to learn and do !! Will switching to IRA account help more without any additional contribution? If yes, i am ok to do so. I do have small amount ~2K in IRA with TD, when i was initially testing it out. But hasn't closed the account yet. I can switch it over to TD or any other IRA account, if it will be helpful.

[jsk]

These are the list of funds available. I will try to get expense ratio for these. Thank you very much for taking time to help. Very much appreciate it.

Voya Fixed Account (4062) -
High Yield Bond
PGIM High Yield Fund - Class R6 - 6589

Inflation-Protected Bond
DFA Inflation-Protected Securities Portfolio - Inst Class - 3223

Intermediate Core-Plus Bond
PGIM Total Return Bond Fund - Class R6

Nontraditional Bond
Templeton Global Bond Fund - Class R6 - 6457
Asset Allocation
Lifecycle - Index
TIAA-CREF Lifecycle Index 2010 Fund - Institutional Class - 7437 (2)
TIAA-CREF Lifecycle Index 2015 Fund - Institutional Class - 7443 (2)
TIAA-CREF Lifecycle Index 2020 Fund - Institutional Class - 7444 (2)
TIAA-CREF Lifecycle Index 2025 Fund - Institutional Class - 7445 (2)
TIAA-CREF Lifecycle Index 2030 Fund - Institutional Class - 7447 (2)
TIAA-CREF Lifecycle Index 2035 Fund - Institutional Class - 7452 (2)
TIAA-CREF Lifecycle Index 2040 Fund - Institutional Class - 7456 (2)
TIAA-CREF Lifecycle Index 2045 Fund - Institutional Class - 7457 (2)
TIAA-CREF Lifecycle Index 2050 Fund - Institutional Class - 7458 (2)
TIAA-CREF Lifecycle Index 2055 Fund - Institutional Class - 7459 (2)
TIAA-CREF Lifecycle Index 2060 Fund - Institutional Class - 7460 (2)
TIAA-CREF Lifecycle Index Retire Income Fund - Inst Class - 7462 (2)

Lifestyle
Vanguard® LifeStrategy® Conservative Growth Fund- Investor - 2608
Vanguard® LifeStrategy® Growth Fund - Investor - 2609
Vanguard® LifeStrategy® Income Fund - Investor - 2610
Vanguard® LifeStrategy® Moderate Growth Fund - Investor - 2618
Balanced
American Funds American Balanced Fund® - Class R-6 – 7027
Large Cap
Fidelity® 500 Index Fund - C975
Fidelity® Large Cap Value Index Fund - D121

Small/Mid/Specialty
Alger Capital Appreciation Institutional Fund - Class Y - C334
Fidelity® Mid Cap Index Fund - D122
BlackRock Mid-Cap Growth Equity Portfolio - Class K - C489
American Century Mid Cap Value Fund - R6 Class – 6305
Fidelity® Small Cap Index Fund - C993

Small Growth
ClearBridge Small Cap Growth Fund - Class IS - 3497

Small Value
DFA U.S. Targeted Value Portfolio - Institutional Class - 2566

Specialty - Commodities Broad
DFA Commodity Strategy Portfolio - Institutional Class - 3480

Specialty - Global Real Estate
DFA Global Real Estate Securities Portfolio - Inst Class - 3484
Global / International
Diversified Emerging Mkts
American Funds New World Fund® - Class R-6 - 3491

Foreign Large Blend
Vanguard® Total International Stock Index Fund - Adm™ Sh - 9889

Foreign Large Growth
American Funds EuroPacific Growth Fund® - Class R-6 - 1723

[jsk]

Some questions for you: What is your overall desired asset allocation? What are the funds available to you in your 401K? What is the expense ratio (ER) for each fund you have available to you?

For the PGIM High Yield Fund, it looks like the objective is "Seeks to maximize current income by investing primarily in high-yield bonds rated Ba or lower by Moody's or BB or lower by Standard & Poor's. Capital growth is a secondary goal." This tracks with the credit quality of the underlying investments (snapshot as of 12/31/2020): This would be more risk than I would be willing to take on for a bond fund , but maybe it is not that big of a deal for you?

"Credit Quality (% of Assets)
AAA
1.8 %
BBB
4.3 %
BB
41.9 %
B
31.4 %
CCC
13.2 %
CC
0.1 %
C
0.1 %
D
0.1 %
Not Rated
2.6 %
Cash/Equiv
4.4 %

https://www.pgim.com/investments/mutual-funds/pgim-high-yield-fund?utm_medium=cpc&utm_source=GOOGLE&utm_campaign=PGIM%20Investments_B2B_Unkwn_Mutual%20Funds_High%20Yield_Brand_Exact&ds_cid=71700000072425957&utm_content=High%20Yield%20-%20PGIM&ds_agid=58700006342882998&utm_term=pgim%20high%20yield%20fund&ds_kid=43700057232779636&matchtype=e&network=g&adposition=&gclid=CjwKCAiAo5qABhBdEiwAOtGmbuG_PI0yTvuBkCLufnNgF7S9I98yjTuyYVsRRbX5S5TBTapHPxcR3BoCh1cQAvD_BwE&gclsrc=aw.ds

Otherwise, the Fidelity and Vanguard are very good funds. Are you trying to replicate the total stock marked with your choices? Here is an article on approximating the total stock market: https://www.bogleheads.org/wiki/Appr...l_stock_market
It looks like you are Fidelity 500-58%, Fidelity mid cap-17% and small cap- 24% right now. So, a little more weighted in small and mid caps than what the total stock market would be, but maybe that is your objective?

My preference is capital growth. These funds were auto allocated and hence i hadn't checked expenses. I want to wait till atleast 20 years before i touch this fund. Till then, Due to certain personal situation, not able to contribute to this at the moment and so i want to to grow whatever i could contribute earlier.