401K recommendations

[52pharm89]

Hey, I just became eligible to enroll in CVS 401K. Apparently, there were 19 accounts that invest in, and I have no idea which one to choose. Any recommendations or finance advisors to recommend to have me started?
Listed funds
Stable Value Fund
US Bond Index
Diversified Bond
Inflation-Protected
Conservative Lifestyle
Moderate Lifestyle
Aggressive Lifestyle
Growth and Income
Core Equity
Socially responsible fund
Large Cap Growth
Mid Cap Index
Global Equity
International Equity Index
International Equity
Small Cap Value
Small Cap Index
Small Cap Growth

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[pezdispenser]

I always go for the low expense ratio index funds. In the beginning you could just do Core Equity to keep it really simple, until you reach about $10-20k. Then you could add small proportions of Mid Cap Index and Small Cap Index to capture the total US stock market, and International Equity Index. When you get closer to retirement, you could dial some of it back into bonds and the Stable Value Fund.

 

[WVUPharm2007]

I actually just rerolled mine. I'm mostly in Core equity, the international fund with the low expense ratio run by vanguard, and large cap growth. With some small cap growth and mid cap index thrown in for further diversification.

 

[baronzb]

Hey, I just became eligible to enroll in CVS 401K. Apparently, there were 19 accounts that invest in, and I have no idea which one to choose. Any recommendations or finance advisors to recommend to have me started?
Listed funds
Stable Value Fund
US Bond Index
Diversified Bond
Inflation-Protected
Conservative Lifestyle
Moderate Lifestyle
Aggressive Lifestyle
Growth and Income
Core Equity
Socially responsible fund
Large Cap Growth
Mid Cap Index
Global Equity
International Equity Index
International Equity
Small Cap Value
Small Cap Index
Small Cap Growth

You have to sector rotate depending on what is hot with the market that month or so. For instance, financials and health are hot now, tech for the last five months. Bonds have been kaput for 2 months. If you can't figure out rotation, then look for trends in the market chart. I do that, but these funds have restrictions of 30d before you can move your money in.
If you really dont' care, do the robo investing thing, where they spread your money around different assets.

 

[Lnsean]

you are young...put in aggressive funds/tech

 

[Wickett]

I am no financial guru, but the general rule is that the further away from retirement you are, the riskier the accounts you can invest in (riskiest typically heavy in international markets down to the safest being govt bonds). Safe will get you reliable, but lower returns in the long run. If you can ride out the fluctuations of the market, riskier portfolios in the long run will get you bigger returns. As you near retirement, you want to scale back risk so you don't end up cashing out at a time when the market happens to be bottomed out.

 

[sosoo]

u look at the performance of each from prior year, or year to date, and select the one(s) most profitable. dont choose something that is a loss or doesn't move much.

 

[WVUPharm2007]

So WTF is up with next year? You can't just set a dollar amount anymore and have to set a percentage of your paycheck? Why do they got to make me do math?

 

[Sine Cura]

That's slightly annoying but if they allow you to modify the contribution rate easily then you should not run into any issues for paychecks where you get your vacation time cash out and/or piddling annual bonus

 

[mentos]

What HSA funds do you guys invest in?

I do these 3:
SWPPX Schwab S&P 500 Index (large cap blend)
VEXMX Vanguard Extended Market Index (mid cap blend)
SWSSX Schwab Small Cap Index (small cap blend)

The fees are so high for the international funds.

 

[Momus]

u look at the performance of each from prior year, or year to date, and select the one(s) most profitable. dont choose something that is a loss or doesn't move much.

You need to read some investment books. Every time you post, you post dumb stuff dude...

 

[sosoo]

You need to read some investment books. Every time you post, you post dumb stuff dude...

i started contributing in 2012. in Five years i have over 100 thousand dollars in my account. im sure i know a thing or two. if you're too stupid to understand thats "your" problem.

 

[deleted462159]

u look at the performance of each from prior year, or year to date, and select the one(s) most profitable. dont choose something that is a loss or doesn't move much.

If that's true, we'd all be rich by now. Some funds have gone up 20% this year... will that continue next year? Unlikely.

 

[sosoo]

If that's true, we'd all be rich by now. Some funds have gone up 20% this year... will that continue next year? Unlikely.

it may, it may not. but im betting over 100 thousand dollars in it.

 

[Momus]

i started contributing in 2012. in Five years i have over 100 thousand dollars in my account. im sure i know a thing or two. if you're too stupid to understand thats "your" problem.

That's it? Another dumb post from you lol...

 

[mentos]

i started contributing in 2012. in Five years i have over 100 thousand dollars in my account. im sure i know a thing or two. if you're too stupid to understand thats "your" problem.

May I ask what your current allocation is, and how much did you contribute each year? I would think it would be much higher by now.

If you put in the max each year:
2012: 17k
2013-2015: 17.5k
2016-2017: 18k

That's already 105.5k excluding the match, reinvested dividends and compound interest. Not to mention the unbelievable bull run during those years.

 

[Charcoales]

Just put into broadest one like sp500 that has lowest/no fees? Am I missing something?

 

[mentos]

Just put into broadest one like sp500 that has lowest/no fees? Am I missing something?

Nope that is great advice. As said before, that fund would be Core Equity. We wish there was a fund with no fees!

 

[sosoo]

May I ask what your current allocation is, and how much did you contribute each year? I would think it would be much higher by now.

If you put in the max each year:
2012: 17k
2013-2015: 17.5k
2016-2017: 18k

That's already 105.5k excluding the match, reinvested dividends and compound interest. Not to mention the unbelievable bull run during those years.

i dont put in a max each year or any year. 5% contribution only + company contribution, and the rest was profit/gain.

 

[sosoo]

That's it? Another dumb post from you lol...

your mom is proud of your stinking life. thats why you're online picking fights.

 

[Momus]

your mom is proud of your stinking life. thats why you're online picking fights.

Yes, bringing a mom insult gives you a lot of credibility here.

Picking a fund based on past performance is not a good idea. If you read more about investing, you will know better. Please read them here, here and here.

 

[CetiAlphaFive]

your mom is proud of your stinking life. thats why you're online picking fights.

pls don't start just using personal insults and wind up banned.

I don't know what I'd do without your unintentional 100% comedy gold posts in my life, sosoo.

 

[pharm B]

Keep it civil. As discussed above and elsewhere, personal attacks are not allowed on SDN.

 

[pezdispenser]

What HSA funds do you guys invest in?

I do these 3:
SWPPX Schwab S&P 500 Index (large cap blend)
VEXMX Vanguard Extended Market Index (mid cap blend)
SWSSX Schwab Small Cap Index (small cap blend)

The fees are so high for the international funds.

Vanguard Extended Market covers mid caps and small caps, or everything smaller than the S&P 500, so you won't need Schwab Small Cap. I wouldn't worry about trying to cover everything in each individual account anyway, especially if the fund options are not good. For example, I have a couple of small 401ks from my per diem jobs, so I just invest in their S&P 500 index fund, and balance the overall allocation using my main 401k.

 

[Dred Pirate]

I do target retirement dates - so it is a no brainer - set it and forget it

 

[mentos]

I do target retirement dates - so it is a no brainer - set it and forget it

These tend to have a lot of bonds in it, would you recommend that for someone in their 20s/30s?

 

[Momus]

These tend to have a lot of bonds in it, would you recommend that for someone in their 20s/30s?

I still recommend target date funds. Some of my friends are clueless about asset allocation (just like sosoo lol). If you pick 2055-2060, they only have 5-10% bonds in it. It's simple enough for newbs to understand; one fund and done. It might not be the best for tax purposes but eh, it's better to start investing than never get to open one because of analysis paralysis.

 

[Dred Pirate]

These tend to have a lot of bonds in it, would you recommend that for someone in their 20s/30s?

These tend to have a lot of bonds in it, would you recommend that for someone in their 20s/30s?

if you choose the correct year of retirement that will work itself out -

 

[deleted820760]

I do target retirement dates - so it is a no brainer - set it and forget it

The problem is these tend to have higher fees. It’s cheaper to pick your own index funds and bonds, and allocate the appropriate percentage of your investment to each.

 

[WVUPharm2007]

The problem is these tend to have higher fees. It’s cheaper to pick your own index funds and bonds, and allocate the appropriate percentage of your investment to each.

Vanguard's is only 0.16%. I was surprised it was so cheap. I might decide to be super lazy and switch my Roth money to that, actually.

That isn't an option for CVS 401k holders, though.

 

[CetiAlphaFive]

I came into this thread wanting to talk about Astartes, but now i see the "1" in between 40 and K

 

[Dred Pirate]

The problem is these tend to have higher fees. It’s cheaper to pick your own index funds and bonds, and allocate the appropriate percentage of your investment to each.

vanguards are so low - most people wont spend the time to reallocte