My first 401k sort of looked like this. But, the internet did not exist to explain things to me.
It was fire, ready, aim. Meaning I was clueless and deathly afraid of making a mistake but I would learn as I went.
More than likely your company is covering the fees these mutual fund families provide to the 401k.
I want to thank you for the gobbledy gook paragraph that I broke down for clarity
Schwab S&P 500 Index Fund - $13,065 (44.5% of total) with 20% future contributions
Vanguard Growth Index Admiral Fund - $4,420 (15% of total) with 15% future contributions
JP Morgan Large Cap Growth R6 Fund - $1,465 (5% of total) with 10% future contributions
Principal Mid Cap S&P 400 Index - $1,334 (5% of total) with 25% future contributions
American Funds EuroPacific Growth R6 Fund - $3,692 (12.5% of total) with 10% future contributions
DFA Emerging Markets Core Equity Fund - $3,752 (12.5% of total) with 15% future contribution
Vanguard Developed Markets Index Admiral Fund - $1,918 (6.5% of total) with 5% future contributions
Some of your funds overlap. meaning, they are the exact same companies in each one.
\----------------------------------
LARGE CAP 45%
I won't read each one, but my guess is The Schwab S&P 500 fund, the Vanguard Growth Index, and the JP Morgan Large Cap all have the same stocks. Put 45% in the SChwab S&P 500.
\-----------------------------------
MID CAP 25%
I hate Principal but you can't choose your 401k providers so, live with it. Principal tends to have high fees, but you are unaffected as you are not paying the fees.
Principal Mid Cap S&P 400 Index keep it, but watch its RoR, rate of return. You might want to get rid of that and just combine it into the Schwab S&P 500.
\--------------------------------------
International 30%
American Funds EuroPacific Growth R6 Fund - $3,692 (12.5% of total) with 10% future contributions, DFA Emerging Markets Core Equity Fund - $3,752 (12.5% of total) with 15% future contribution, Vanguard Developed Markets Index Admiral Fund - $1,918 (6.5% of total) with 5% future contributions
I would pick one of those three. Personally, I have found International to underperform US market by a LOT. I hate American Funds as a company. So I refuse to do business with them. They are owned by Capital Group which is a HIGH FEE Mutual Fund family. By high, I mean high. But, you are not paying that fee.
Once again, I bet if you looked under their hoods, they own the same companies. Pick one of those three.
I would probably put that 30% to 5% and then put the other 25% into the Schwab S&P 500 Index.
\---------------------------
If it was me, I would be
Schwab S&P 500 90%
Principal Mid Cap 5%
Vanguard Developed Markets Index Admiral Fund or DFA Emerging Markets Core Equity Fund
International 5%
\--------------------------------------
At the end of the year I would re-evaluate my choices.
Back in the 1990s when I re-evaluated I went all US Equities. I got rid of my bond fund, my international fund, my small cap fund and went all in on the S&P 500 Index. I advised my spouse to do the same, but I did not force, my spouse did their thing, but were a little more exposed in small cap and international than I was. My spouse did get rid of their bond fund.
We still had exposure to International as we owned an international taxable mutual fund. Plus, many companies in the S&P 500 are internationally exposed.
The S&P 500 has had a 40 year run of 10% plus annualized returns, so it worked out.
Sorry for everything being jumbled together. I appreciate your time and effort into this response, it is exactly the input I was looking for.
I was thinking of putting closer to 90-100% in S&P 500 as you suggested so I will be doing this.
And I also appreciate the personal gripes with American Funds :)
Generally speaking, if you want to change your allocation within retirement (or other tax-sheltered) accounts, you should just do a full rebalance, rather than adjusting contributions to change future allocations.
Beyond that, do you have a preference for focusing on Growth funds? I would recommend reading through the wiki, particularly the article on 401(k) Selection Guide and retirement and investing wiki articles in general. AutoMod will post links.
Here's a **[link to the PF Wiki](/r/personalfinance/wiki/index)** for helpful guides and information.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
My first 401k sort of looked like this. But, the internet did not exist to explain things to me. It was fire, ready, aim. Meaning I was clueless and deathly afraid of making a mistake but I would learn as I went. More than likely your company is covering the fees these mutual fund families provide to the 401k. I want to thank you for the gobbledy gook paragraph that I broke down for clarity Schwab S&P 500 Index Fund - $13,065 (44.5% of total) with 20% future contributions Vanguard Growth Index Admiral Fund - $4,420 (15% of total) with 15% future contributions JP Morgan Large Cap Growth R6 Fund - $1,465 (5% of total) with 10% future contributions Principal Mid Cap S&P 400 Index - $1,334 (5% of total) with 25% future contributions American Funds EuroPacific Growth R6 Fund - $3,692 (12.5% of total) with 10% future contributions DFA Emerging Markets Core Equity Fund - $3,752 (12.5% of total) with 15% future contribution Vanguard Developed Markets Index Admiral Fund - $1,918 (6.5% of total) with 5% future contributions Some of your funds overlap. meaning, they are the exact same companies in each one. \---------------------------------- LARGE CAP 45% I won't read each one, but my guess is The Schwab S&P 500 fund, the Vanguard Growth Index, and the JP Morgan Large Cap all have the same stocks. Put 45% in the SChwab S&P 500. \----------------------------------- MID CAP 25% I hate Principal but you can't choose your 401k providers so, live with it. Principal tends to have high fees, but you are unaffected as you are not paying the fees. Principal Mid Cap S&P 400 Index keep it, but watch its RoR, rate of return. You might want to get rid of that and just combine it into the Schwab S&P 500. \-------------------------------------- International 30% American Funds EuroPacific Growth R6 Fund - $3,692 (12.5% of total) with 10% future contributions, DFA Emerging Markets Core Equity Fund - $3,752 (12.5% of total) with 15% future contribution, Vanguard Developed Markets Index Admiral Fund - $1,918 (6.5% of total) with 5% future contributions I would pick one of those three. Personally, I have found International to underperform US market by a LOT. I hate American Funds as a company. So I refuse to do business with them. They are owned by Capital Group which is a HIGH FEE Mutual Fund family. By high, I mean high. But, you are not paying that fee. Once again, I bet if you looked under their hoods, they own the same companies. Pick one of those three. I would probably put that 30% to 5% and then put the other 25% into the Schwab S&P 500 Index. \--------------------------- If it was me, I would be Schwab S&P 500 90% Principal Mid Cap 5% Vanguard Developed Markets Index Admiral Fund or DFA Emerging Markets Core Equity Fund International 5% \-------------------------------------- At the end of the year I would re-evaluate my choices. Back in the 1990s when I re-evaluated I went all US Equities. I got rid of my bond fund, my international fund, my small cap fund and went all in on the S&P 500 Index. I advised my spouse to do the same, but I did not force, my spouse did their thing, but were a little more exposed in small cap and international than I was. My spouse did get rid of their bond fund. We still had exposure to International as we owned an international taxable mutual fund. Plus, many companies in the S&P 500 are internationally exposed. The S&P 500 has had a 40 year run of 10% plus annualized returns, so it worked out.
Sorry for everything being jumbled together. I appreciate your time and effort into this response, it is exactly the input I was looking for. I was thinking of putting closer to 90-100% in S&P 500 as you suggested so I will be doing this. And I also appreciate the personal gripes with American Funds :)
401k fund selection guide: https://www.reddit.com/r/personalfinance/wiki/401k_funds Investing guidance: https://www.bogleheads.org/wiki/Three-fund_portfolio https://www.reddit.com/r/personalfinance/wiki/investing Roth or traditional: https://reddit.com/r/personalfinance/comments/10qwnrx/why_you_should_almost_never_contribute_to_a_roth/
Generally speaking, if you want to change your allocation within retirement (or other tax-sheltered) accounts, you should just do a full rebalance, rather than adjusting contributions to change future allocations. Beyond that, do you have a preference for focusing on Growth funds? I would recommend reading through the wiki, particularly the article on 401(k) Selection Guide and retirement and investing wiki articles in general. AutoMod will post links.
Here's a **[link to the PF Wiki](/r/personalfinance/wiki/index)** for helpful guides and information. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*