401K got rolled to a new company, what are good options targeting 20-25 year outlook?

[streetlight]

Like the title says, my 401k got rolled to a new company and it seems like the options I have with these guys aren't great. lots of high fees. What do you guys think are some good options?

INVESTMENT
MIX
CLASS
1 YR
5 YR
INCEP
GROSS EXP %

AB US Lrg cp Gr CIT W Sers Fee Cl P-3
96/4
Large Cap Funds
-24.08%
N/A
-5.49%
0.35%

American Century In Retirement Xll

Balanced Funds
-14.65%
2.86%
-5.75%
0.18%

American Century Retirement Date 2025 XII

Balanced Funds
-15.26%
3.05%
-5.97%
0.18%

American Century Retirement Date 2030XII

Balanced Funds
-16.41%
3.29%
-6.48%
0.18%

American Century Retirement Date 2035XII

Balanced
-17.40%
3.55%
-6.89%
0.18%

American Century 2040XII

Balanced
-18.49%
3.82%
-7.36%
0.18%

American Century Retirement Date 2045XII

Balanced
-19.21%
4.19%
-7.57%
0.18%

American Century Retirement Date 2050XII

Balanced
-19.82%
4.55%
-7.65%
0.18%

American Century Retirement Date 2055XII

Balanced
-20.17%
4.63%
-7.72%
0.18%

American Century Retirement Date 2060XII

Balanced
-20.34%
4.76%
-7.72%
0.18%

American Century Retirement Date 2065XII

Balanced
-20.39%
N/A
-7.74%
0.18%

Blackrock Equity Index 1
99/1
Large Cap Funds
-15.47%
9.26%
11.35%
0.02%

Columbia Trust Dividend Income I
98/1
Large Cap Funds
-7.55%
N/A
16.45%
0.40%

JHancock Disciplined Value Mid cap R6

Mid Cap Funds
-11.58%
5.27%
10.74%
0.75%

MassMutual Infl-Prot and Inc R5

Bond Funds
-12.46%
1.82%
0.93%
0.57%

MassMutual US Govt Miny Mkt R5
100
Money Funds
0.41%
0.76%
0.40%
0.51%

MIFS Intl Diversification R6

International Funds
-25.35%
N/A
-0.17%
0.73%

Mid Cap Growth Fund Fee Class R1
97/3
Mid cap Funds
-38.06%
N/A
-0.13%
0.50%

PGIM Total Return Bond Z
2
Fixed
-16.58%
-0.24%
1.22%
0.51%

PIMCO Income Instl

Fixed
-10.73%
N/A
1.07%
0.51%

PIMCO Int Bond (USD-Hedged) Inst

Bond Funds
-10.93%
0.75%
2.71%
0.51%

Small Cap Growth Fund 11 Fee Class RI

Small Cap Funds
-39.37%
N/A
-8.12%
0.64%

Vanguard FTSE All-Wid ex-US Inx Admiral
99
International Funds
-24.88%
-0.61%
3.30%
0.11%

Vanguard Growth Index Adm
100
Large Cap Funds
-25.86%
10.97%
12.69%
0.05%

Vanguard Value Index ADM
100
Large Cap Funds
-6.64%
7.06%
10.48%
0.05%

Victory Small Cap Value Collective 75
97/3
Small Cap Funds
-9.90%
5.69%
10.56%
0.75%

 

[noelcraddock]

@streetlight I'd go 100% Vanguard Growth Index and not look back. You could diversify through your own brokerage account.

 

[streetlight]

@noelcraddock Why the growth and not the value? Looking at past performance, the value seems to just about keep up with growth, but lost less in the last year.

Maybe a 50/50 split of them?

 

[validani]

@streetlight 20_25 years , growth make sense but sure if you wanna add some value but I wouldn't do 50/50. This is a good to park $ in growth if u have a LT horizon.

 

[streetlight]

@validani So value if you have a shorter horizon? Im very new to all of this and still learning a lot

 

[noelcraddock]

@streetlight Looking at last year's performance (including up to present day), growth has gotten absolutely crushed, so counter-intuitively seems to me a better "value" than a value-based fund if you were to start with "new" money. While traditional beliefs that value is a better long term bet (slightly) than growth are being reevaluated. My bent has always been (20+ years) that the companies that constitute growth are companies that have had proven and enduring success (obv not all of them, but then again these are funds and not individual company stocks). I have every expectation growth recovers, and when it does someone investing on the growth side will garner those outsized gains.

 

[ryckers_prayer_warriors]

@streetlight Only ones to consider are those with expense rations of 0.05 or less. So, just the two vanguard and the one from black rock. Of those, with 20-25 years, I’d go 100% into Growth

 

[yahkov]

@streetlight I would look at the index funds first. The Blackrock Equity Index fund is probably a S&P 500 index fund. This would be a good option that isn’t tilted toward growth or value. The other index options will be low cost and give you opportunities to diversify if you wish.

 

[shar7]

@streetlight Just for the future. You did not need to rollover to your new company. You could have left at old company or open IRA at some one like fidelity or vanguard. That would have been the best option since you have plenty of choices and low fees.

 

[streetlight]

@shar7 Oh I didn’t roll it over, the company I work for switched 401K companies and rolled it to the new people, I probably said that poorly.

I do have an IRA with fidelity though and love them

 

[shar7]

@streetlight Ok. Same thing happened to me. Since this is a long term investment. The simple answer is S&P 500 index. But Small Company Value has the best returns for long term. Just a roller coaster ride

 

[mrjeff]

@streetlight You need to focus on low cost index funds. Once you pick those it is hard to make a bad decision since your saving rate not earnings rate dictates most of the return.

FWIW I’d go with a Boglehead style 3 fund portfolio would be US/International/Bond in a 70/20/10 mix. So Blackrock Equity, Vanguard FTSE ex-US and PIMCO Inst Inc. The fees on the PIMCO are a bit rich though so at your age going 75/25 on the stock funds will be cheaper. Many will go all in on Blackrock though and there is no way I can say it won’t do better than my suggestion.

It is interesting how I consider anything over 0.5% E.R expensive for anything beyond a niche investment. Not so long ago 1% was a bargain.