CVS 401k Allocation

[SClENCE]

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Just was wondering for those you you who work for CVS which funds you have chosen to contribute to.

My personal investing style (for the time being) is very aggressive/high risk... though I am not sure how much to allocate to each fund. One thing is for sure I'll be 100% stock for awhile.

I was thinking -
25% Global (This fund is about 50% international 50% domestic so I'm only at 12.5% international exposure, but this fund has performed much better than the 100% international fund anyways)
25% CVS (I will eliminate this in the future once I enroll in the ESPP)
20% Mid Cap
20% Small Cap
10% Total market fund

CVS offers multiple funds in each category... I opted for the Vanguard funds because their fee is significantly lower and the performance seems to actually be better. The private funds have a higher free and a traditionally lower return.

Another question - CVS will offer the Roth option in October... since I'm not a pharmacist shall I wait until the Roth is offered to contribute? I think this would be a good idea for me personally seeing as my tax rate is like 15%

 

[wagrxm2000]

Just set it to one of the targeted retirement funds and forget about it. Be aggressive with your play money not retirement money.

As for roth it depends on what tax bracket you plan on being in when you retire. Most would say lower so don't do roth.

 

[confettiflyer]

Just set it to one of the targeted retirement funds and forget about it. Be aggressive with your play money not retirement money.

As for roth it depends on what tax bracket you plan on being in when you retire. Most would say lower so don't do roth.

Targeted funds are often too conservative, even the "aggressive" ones sit at 10-20% bonds, wholly inappropriate for someone in their late 20's or early 30's...but it depends on the company used.

 

[SClENCE]

The targeted funds are horrid. Even the most aggressive holds bonds which are not something a 22 year old needs

 

[wagrxm2000]

For a person who doesn't want to think about it, targeted funds are the way to go. Who would be 100% stocks right now? You are asking for a beating, the market is crashing soon and if it doesn't we will continue in this -5 to 10% returns until it does. Now after we correct, sure change it up some but not now.

 

[BMBiology]

For a person who doesn't want to think about it, targeted funds are the way to go. Who would be 100% stocks right now? You are asking for a beating, the market is crashing soon and if it doesn't we will continue in this -5 to 10% returns until it does. Now after we correct, sure change it up some but not now.

I have been 100% stocks for more than 2 years. Getting out of bonds is probably one of the best decisions I made. If the stock market crashes? Doesn't bother me too much because I am years from retirement.

I also think bonds are not as safe as they used to be.

Why bother with target funds? If you want to do target funds, just look at how they are allocating their money and just copy it. The cost will probably be less if you do it yourself.

 

[wagrxm2000]

My charge is 0.06%, why waste time messing with your 401k. Set it and forget it. I'm perfectly fine with being all stock outside 401k though.

 

[confettiflyer]

For a person who doesn't want to think about it, targeted funds are the way to go. Who would be 100% stocks right now? You are asking for a beating, the market is crashing soon and if it doesn't we will continue in this -5 to 10% returns until it does. Now after we correct, sure change it up some but not now.

Crashing soon? If you're right, then you just described the perfect conditions to go to a 100% stock allocation and dollar cost average the dip.

Negative 5 to positive 10% returns? Also a food conditions to buy.

Bonds at age 20-30 is a guaranteed loss by way of inflation and better returns over 20-30 years elsewhere.

 

[SClENCE]

I was looking for input on specifically which stock funds to look at for someone who wants to invest aggressively.

Example:
Small Cap Growth (VEXRX) vs. Small Cap Index (VSCPX) vs. Small Cap Value (DFFVX)
International Equity Fund (TFEQX) vs. International Equity Index Fund (VDIPX) vs. Global Equity Fund (RNPGX)
Large Cap Growth Fund vs. Core Equity Fund (VIIIX)

We are not talking about target funds or bonds!!!

 

[confettiflyer]

I was looking for input on specifically which stock funds to look at for someone who wants to invest aggressively.

Example:
Small Cap Growth (VEXRX) vs. Small Cap Index (VSCPX) vs. Small Cap Value (DFFVX)
International Equity Fund (TFEQX) vs. International Equity Index Fund (VDIPX) vs. Global Equity Fund (RNPGX)
Large Cap Growth Fund vs. Core Equity Fund (VIIIX)

We are not talking about target funds or bonds!!!

You have access to DFA funds? Take it! DFFVX, the rest should be vanguard for fee purposes.

 

[wagrxm2000]

Crashing soon? If you're right, then you just described the perfect conditions to go to a 100% stock allocation and dollar cost average the dip.

Negative 5 to positive 10% returns? Also a food conditions to buy.

Bonds at age 20-30 is a guaranteed loss by way of inflation and better returns over 20-30 years elsewhere.

That's why I said after a correction go all stocks. Earnings have been horrible this year and aren't going to improve next year. Why risk 100% now?

 

[confettiflyer]

That's why I said after a correction go all stocks. Earnings have been horrible this year and aren't going to improve next year. Why risk 100% now?

Because you're able to time the bottom exactly? And your earnings crystal ball is where?

I think you missed my comment about dollar cost averaging. Perfect opportunity to buy.

What you do with your existing allocation is different, then we can talk about playing defense.

 

[BMBiology]

^^ Wag teaches their managers on how to time the stock market

 

[SClENCE]

You have access to DFA funds? Take it! DFFVX, the rest should be vanguard for fee purposes.

I think for the three small cap options I can directly buy VEXRX and/or VSCPX (both Vanguard). For the third option (small cap value fund) it states: "Dimensional fund advisers U.S. targeted value I fund: DFFVX and Wells Fargo Pelican"

So I think the fund is called "Dimensional fund advisers U.S. targeted value I fund" but I'm not sure what the "DFFVX and Wells Fargo Pelican" means... I'm not familiar with DFA funds.

 

[wagrxm2000]

^^ Wag teaches their managers on how to time the stock market

Who said anything about timing the market? When we dropped 9% this past oct you didn't add more?

People have different opinions, I doubt you'll find too many experts saying go 100% stocks right now. The market is expensive right now and I don't think you can deny that.

 

[SClENCE]

How about

25% Small Cap Index
25% Mid Cap Index
25% Large Cap Growth
25% Global Equity Fund

I think blends (ie. index) have generally outperformed value/growth funds (and also have a much much smaller fee) with the exception of large cap (thus index for small/mid cap and growth for large cap). The Global Equity Fund offered buy CVS has crushed the other options with international exposure so I selected it. I decided against CVS stock as I will have enough exposure to CVS through ESPP if I choose to participate.

I think I'm pleased with this set-up for someone who is looking for a 100% stock portfolio.

 

[BMBiology]

Who said anything about timing the market? When we dropped 9% this past oct you didn't add more?

People have different opinions, I doubt you'll find too many experts saying go 100% stocks right now. The market is expensive right now and I don't think you can deny that.

It may be high but tell me when you do think it is a good time to get out and when it is a good time to get back in.

 

[wagrxm2000]

I'll tell you when I go 15% gold too. Right now its 0%

 

[BMBiology]

I'll tell you when I go 15% gold too. Right now its 0%

Not another gold bug. Gold bugs have been predicting the collapse of the stock market since 2010...just read the investment thread.

 

[wagrxm2000]

Not another gold bug. Gold bugs have been predicting the collapse of the stock market since 2010...just read the investment thread.

I have zero gold and expect it to fall more. How am I a gold bug?

 

[confettiflyer]

Who said anything about timing the market? When we dropped 9% this past oct you didn't add more?

I moved money in my "actively managed by confettiflyer" account (which is distinct from my stupid fun money account and my conservative Boglehead account, the latter of which constitutes the bulk of my investments).

People have different opinions, I doubt you'll find too many experts saying go 100% stocks right now. The market is expensive right now and I don't think you can deny that.

Not unless you're Ben Bernanke. But I see you worship at the altar of Yellen.

 

[BMBiology]

I have zero gold and expect it to fall more. How am I a gold bug?

I don't know why you keep on making predictions like you are some big shot hedge fund manager.

If I am that good, I wouldn't be working at Walgreens.

 

[SClENCE]

Buying into dips and selling at peaks in my opinion is a lot easier with futures than it is with stocks, and the market as a whole is probably the most difficult to predict in terms of when to buy in/sell off. My 401k I will simply buy and hold... whereas with my Roth IRA and personal investments I will trade way more actively given the fact that I am dealing individual stocks and futures. I'v had a good time trading oil and natural gas... been buying in and selling off every 3-5 days and have returned just under 100% in 3 months. I'd like to think it's skill and this is something that I could maintain but it's probably just luck. At some point, though, I could just throw my contribution into a "safe" investment and continue playing with the profits. I'm still bullish on stocks but if you are cash heavy real estate may be worth looking into. I don't think the returns of gold as a long term investment have been too impressive.

 

[wagrxm2000]

I don't know why you keep on making predictions like you are some big shot hedge fund manager.

If I am that good, I wouldn't be working at Walgreens.

I have given my opinion,.Sorry that it's different then yours.