My Retirement Portfolio

I think I have mentioned in earlier posts where I keep my investments but I thought I'd post a little more detail on it here in one post.

I have two accounts for retirement:

Roth IRA - Opened in 2005 with Vanguard while still in college. Now contribute the max per year ($5,000 for 2008) for myself.

401K - Eligible once I started my job last July although employer match will not begin until a year after I have been working. This account is run through Fidelity.

Before posting the details let me just say that some adjustments need to be made. When I first contributed to my 401k I picked some diversified funds that had higher fees and recently I have begun to contribute 100% of my 401k contributions to one fund. Despite having a financial background in college I still feel too often that I'm not sure what to do so that causes me to just sit and watch. So if you have any comments, ideas, suggestions, please leave them.

ROTH IRA

VFIFX - VANGUARD TARGET RETIREMENT FUND 2050 - 100% of contributions

I choose this fund for the low fees and because it adjusts automatically as I age into less stocks and more safer investments. Also I get exposure to international funds which is what I want. I guess the downside is I almost want to be 100% invested in stocks at my age but this fund has 10% of holdings in a bond index fund.

All info taken from Vanguard.com

Expense Ratio - .21%

Who Should Invest - Investors seeking long-term growth of capital and income, a broadly diversified of stocks and bonds that will gradually become more conservative, and investors seeking to retire between 2048 and 2053.

Who Should not Invest - Investors unwilling to accept significant fluctuations in share price, investors seeking significant current income, or investors expecting a guaranteed level of income upon retirement

401K
FID US EQ INDEX POOL - Currently 100% of my contributions are going into this. This was the best fund I could find with an extemely low expense ratio. This is actually per the website "A commingled pool of the Fidelity Group Trust for Employee Benefit Plans (not a mutual fund). Not exactly sure what that means other than I know there is no ticker symbol for it. This investment is built to match US stock returns so its downside is if our markets tank I suffer. Ideally I would be able to find another fund like this one that covers international stocks in the same manner.

All info taken from Fidelity.com
Expense Ratio - .10%


What it invests in - 90% of the pool's universe will be invested in securities of companies which compose the S&P 500 index. Its goal is to provide results that correspond to the total return performance of common stocks publicly traded in the United States.

Investments I still have kept but no longer contribute to:

FID Diversified Intl (FDIVX) - I liked this fund as I mentioned above to take care of my international exposure but the Expense Ratio is .93%. No thanks that is too much off the top for me.

FID Value Fund (FDVLX) - This fund tries to find domestic stocks that are undervalued and get nice earnings for the investor. Again an expense ratio of .70% made me steer away.

FID Real Estate Investment Portfolio (FRESX) - a .83% expense ratio plus the fact that it could be very volatile made me get out of this fund.

FID Utilities Fund (FIUIX) - As you can see my prior holdings were pretty well rounded from diversity standpoint but this had an expense ratio of .85%.

Overall here is my breakdown in all retirement funds (Keep in mind the top 2 will continue to take up more of the total over time because they are the only two I contribute to)

84% - VANGUARD TARGET RETIREMENT FUND 2050
8% - FID US EQ INDEX POOL
3.5% - FID Diversified Intl
3.3% - FID Value Fund
<1% - FID Real Estate Investment Portfolio
<1% - FID Utilities Fund


I think in another post I'll breakdown how much I have in Intl vs. Domestic, Stocks vs. Bonds, etc.