401k Plan Adjustments

This week I spent a considerable amount of time analyzing my 401k plan. I hadn't made any changes in 2007 and it was time to review. This was previous and somewhat generic 401k set up - none of the funds are publicly traded...

20% - Large-Cap Value Index
15% - REIT Index
25% - Small-Cap Growth Index
40% - Total Int'l Stock Market Index

YTD Return - 7.9% (almost 6 months)

I realize this is a very simple set up, but that was the idea. I wanted to take on a fair amount of risk because my balance is not that high (around $15k) and being 27 years old, am far from retiring!

Several of my coworkers and I regularly compare YTD returns to see who is in the lead. It also keeps us on our toes to take full advantage of the market. I usually am either in the lead or close to it, but this year one of my old teammates is kicking my butt with around 13% YTD returns. I knew he had enrolled in the "*Mutual Fund Window" a while back, giving him access to almost 200 top-quality, publicly traded funds. We had done about the same until this year, though and I am a sore loser for sure, which resulted in my enrollment into the "*Mutual Fund Window" and redistribution of investments.

*This is part of my company's 401k plan which is managed by Fidelity.

So, as of 6/20/07, this is my new investment mix, with group %s based off the original model (yes, I am a big fan of international investments like most people):

10% - Fidelity Export & Multinational Fund - Large-Cap Blend
15% - Dodge & Cox Stock - Large Value
20% - Fidelity Leveraged Company Stock - Mid-Cap Blend
15% - American Funds Small Cap World - Small-Cap Growth
10% - Fidelity Intl. Real Estate - Specialty RE
8% - Vangaurd Intl. Explorer
7% - Vangaurd Global Equity
8% - Fidelity Latin America
7% - Dodge & Cox Intl. Stock - Foreign Blend

These are slightly different proportions than my original mix:

25% - Large-Cap
20% - Mid-Cap
15% - Small-Cap
40% - Intl. (unless you include that 50% of the AF Small Cap World is intl, in which case I am 47% intl.)

I am noting that I am 7.9% YTD as the starting point on 6/20/2007. We'll see how it goes!