Should I manage my own 401(k)?

[neari]

@itisbeebop Ok, I decided I need to get involved with it. I have focused on real estate the past few years, but since the market rates are rough, I’m ready to optimize this pot of cash

 

[eascusa]

@neari Rebalance at 70/30 split for s&p. No issue with taking more risk at your age.

 

[neari]

@eascusa Ok! I’m open to more risk

 

[eascusa]

@neari I rebalanced this week myself the exact same way from my 2055 fund

 

[neari]

@eascusa First time rebalancing?

 

[eascusa]

@neari Yea I regret not doing it at least annually. I would have more money if I did. Im 32

 

[linaki]

@neari I've gone through this before. For me, rather than rebalancing my current TDF, I just changed the contributions.

Something like 80/20 for future contributions of S&P500/TDF made sense for me

 

[lilybai]

@neari Dump it in s&p500 target funds suck compared to it

 

[qwehkr10]

@neari I can send you a screenshot of my allocation mix. I pick and aggressive model and it’s done well

 

[readytogo2]

@neari Target funds have too much international equity for my taste along with some funds having 5-10% in bonds, which is utterly ridiculous for someone in their 20s-30s. I personally do a 75/25 split in my 401k between S&P 500 and target 2060 fund which gives me a small, but more appropriate sized exposure to international equity/bonds imo.

 

[sobersam]

@readytogo2 Second that. This would be the best way to go especially at that age

 

[neari]

@readytogo2 Agreed. I looked at the returns and it is way too conservative to be responsible for all of my money

 

[rhianne]

@neari Ex-US is just as, if not more aggressive than the US (assume does not just mean whatever has done the best in recent years). Only the bonds are conservative, and you can adjust how many of those you hold based on the year you pick.

 

[neari]

@rhianne Fair. I might add Ex-US in the future.

 

[rhianne]

@neari Why only in the future? What would make you start to do so?

 

[neari]

@rhianne Im not as bullish on the rest of the world. I explained it just a minute ago in this thread:

https://www.reddit.com/r/investing/comments/1b2j75h/comment/ksratl9/?utm\_source=share&utm\_medium=web2x&context=3

 

[rhianne]

@neari Be aware that that puts you at odds with several (if not all) big names in the industry. While they can be wrong, or may be worth asking if they're taking into account the same stuff you are but also even more.

Ex-US outperformance predicted over the next decade or so:

• https://advisors.vanguard.com/insights/article/areinternationalequitiespoisedtotakecenterstage or the archived link if that doesn't work: https://web.archive.org/web/2021010...einternationalequitiespoisedtotakecenterstage
• https://www.morningstar.com/articles/1018261/experts-forecast-stock-and-bond-returns-2021-edition (can see mention of it even before the paywall) or the 2023 version: https://www.morningstar.com/articles/1132887/experts-forecast-stock-and-bond-returns-2023-edition

 

[ice_bear]

@readytogo2 Target funds just have too many securities. They hold funds with more securities. You end up with a teeny allocation to every fucking stock and bond and a fat allocation to the fees in each level of fund

 

[godgifts63]

@neari Another vote for 100% S&P500 here.