401k Planning 25 Year Old

[joey24]

Need some help with investing had my 401k with vanguard for about a year and when I started it I cant even remember why I picked my portfolio to be 100% AB Large Cap Growth Z (APGZX) I contribute close to 10% a year and want to make sure my money is being used best at a young age here are my options.

If more personal finance information is required I will gladly provide. I would really appreciate the help I have no one to guide me as far as things like this go.

AB Large Cap Growth Z (APGZX)

Core Plus Bond R1

International Equity R1

JPMorgan Equity Income R6 (OIEJX) B

Janus Henderson Enterprise N (JDMNX)

MFS Mid Cap Value R6 (MVCKX) B

MetLife GAC-25053 Class 0

Small Cap Growth II R1

Small Cap Value Fund II R1

Vanguard 500 Index Adm (VFIAX) B

Vanguard Developed Mkts Index Adm (VTMGX) B

Vanguard Emerging Mkts Stock Idx Adm (VEMAX) B

Vanguard Mid Cap Index Adm (VIMAX) B

Vanguard Real Estate Index Adm (VGSLX) B

Vanguard Small-Cap Index Adm (VSMAX) B

Vanguard Target Retirement 2020 Fund (VTWNX) B

Vanguard Target Retirement 2025 Fund (VTTVX) B

Vanguard Target Retirement 2030 Fund (VTHRX) B

Vanguard Target Retirement 2035 Fund (VTTHX) B

Vanguard Target Retirement 2040 Fund (VFORX) B

Vanguard Target Retirement 2045 Fund (VTIVX) B

Vanguard Target Retirement 2050 Fund (VFIFX) B

Vanguard Target Retirement 2055 Fund (VFFVX) B

Vanguard Target Retirement 2060 Fund (VTTSX) B

Vanguard Target Retirement 2065 Fund (VLXVX) B

Vanguard Target Retirement 2070 Fund (VSVNX) B

Vanguard Target Retirement Income Fund (VTINX) B

Vanguard Total Bond Market Index Adm (VBTLX) B

 

[tonya85]

@joey24 If you want to retire at 60, a targeted fund of 2060 is a great bet.

 

[joey24]

@tonya85 Should I diversify at all? I’ve read other people say VFIAX could be helpful

 

[returntotheway]

@joey24 You're young, you can handle the risk of 100% VFIAX, no need for bonds dragging down your gains.

 

[joey24]

@returntotheway Is that something I should change as I get older or when should I actually be watching it closely to know when to make changes?

 

[returntotheway]

@joey24 No. 100% and chill.

You'll have some ups and downs but this will get you higher gains. When you're 50, consider shifting some to bonds, but this isn't something where you need to make adjustments quarterly or yearly.

 

[tonya85]

@joey24 VFIAX would be a good alternative. VFIAX tracks the top 500 US companies like the S&P 500. The 2060 target has most of those same companies as well plus it’s 36% international shares. Then it has ~10% of bonds as well, which are a safer play but usually less returns. The advantage of a target date fund is that as you get closer to retirement age they’ll transition more of your money to bonds which are safer. If you’ve narrowed it down to either of these two options you’re going to be set. It would be redundant to get both.