Black Rock for 401m?

[opusdefunctorum]

BlackRock Index Fund in 401k

Waste of time you think?

10% of my weekly contribution buys MPHQX which is BlackRock Total Return Fund - Class K.

Fund hasn’t done much in last few years so am just accumulating dividend paying stock

Smart of silly to miss out on growth funds?

Thought was to diversity in 401k with Vanguard mid cap (75% of contribution) and Vanguard small gap (15% of contribution)

TIA

 

[ernestservant]

@opusdefunctorum MPHQX is a bond fund. Bonds have had a tough go the last couple of years (2022 was worst year ever). No idea of your age or risk tolerance, but 100% bonds is about as conservative as you can get. Even retirees aren’t that conservative. Check out bogleheads sub. If you’re looking for growth funds tracking market returns, Vanguard Mid and Small isn’t going to get you there either (as of late). For retirement money, definitely looking into the target date funds offered. Or total market options (US and non-US).

 

[opusdefunctorum]

@ernestservant 45m
Maxing 401k and IRA’s
350k in now and NW without house
1.7nw including house
Goal F55
MOHQX isn’t even dividends? Jeeze did I mess that up lol. Haven’t been doing it long though so I can transfer.

Curious your thoughts on VTI or VTO that’s where big chunks are now

 

[ernestservant]

@opusdefunctorum Do your research before transferring. At your age (I’m super close) some bonds exposure normally makes sense. Just not usually all of it. VTI and VOO are definitely market tracking (sp500 or total). I’m a fan of simple portfolios and indexing but understand that’s not everyone’s game. Again, go check out r/investing or r/bogleheads (the latter is all 3 fund portfolio but it’ll give you an idea of allocations).

 

[emsxxo]

@opusdefunctorum Based on this post you would almost certainly be best off allocating 100% of your 401k to a targeted retirement fund. You do not know enough about finance to do this yourself in a well thought out manner. You purchased a product without understanding what it was. This is a normal problem to have and is why targeted date funds exist.

Your plan provider will almost certainly have a fund called something like “Vanguard Targeted Date Retirement Fund 2045” or “Fidelity Freedom 2045 Fund” Choose one of these, put your entire 401k into it, and have all contributions go there. These funds invest in a diverse set of domestic and foreign stocks and bonds and are very inexpensive. As you age they will automatically become more bond-heavy and less stock-heavy. If you want additional exposure to any given asset category (like extra small-cap exposure for instance) you could do 90% targeted date and 10% whatever else.