Hello desi (and other gurus),
I am attaching my AAP questionnaire.
Hoping to hear back any feedback (especially about my fund allocation in 401k) . Let me know if any more details are needed
Regards,
Sequoia
AAP for sequoia
AAP for sequoia
sequoia;91958Hello desi (and other gurus),
I am attaching my AAP questionnaire.
Hoping to hear back any feedback (especially about my fund allocation in 401k) . Let me know if any more details are needed
Regards,
Sequoia[/quote]
Sequoia,
I will not be able to address a full Finanacial plan at this time. I would suggest to look at some other AAPs and develop one for yourself with help from other AAPs developed.
I must congratulate you for a very nice accumulation of assets.
As to funds in 401K, it would help that instead of just the symbol, if you could post name and some information for each of the funds. Expecting others to do research on each of this funds is a little too much. You can make it easy for people to give advice, by instead of just listing symbol, list name, some information on fund and also post a link where detailed information for fund is available. Generally a Yahoo finance link would do.
You can post info on funds and post links directly in a post instead of a Word document and that would further make it easier.
One other quick comment, is that considering a very large sum in cash, I see no reason why any of your investments should be in bonds. All of your other investments even if all of them were in equities, you still would be only 20% in equities.
The only reason, I would hesitate to put anything in equities is if you plan to sell all and move all funds to India and in that case equities may be ill advised or investments have to be carefully planned for a proper sideways move. However, if you plan to leave some investments in USA for the long haul, then equities are a must.
AAP for sequoia
Ok Desi will do. Sorry for not providing enough information before.
I am updating the doc with some more information about each fund and hyperlinks.
Will re-evaluate my bond investment based on the feedback you gave.
I am updating the doc with some more information about each fund and hyperlinks.
Will re-evaluate my bond investment based on the feedback you gave.
Desi;93052Sequoia,
I will not be able to address a full Finanacial plan at this time. I would suggest to look at some other AAPs and develop one for yourself with help from other AAPs developed.
I must congratulate you for a very nice accumulation of assets.
As to funds in 401K, it would help that instead of just the symbol, if you could post name and some information for each of the funds. Expecting others to do research on each of this funds is a little too much. You can make it easy for people to give advice, by instead of just listing symbol, list name, some information on fund and also post a link where detailed information for fund is available. Generally a Yahoo finance link would do.
You can post info on funds and post links directly in a post instead of a Word document and that would further make it easier.
One other quick comment, is that considering a very large sum in cash, I see no reason why any of your investments should be in bonds. All of your other investments even if all of them were in equities, you still would be only 20% in equities.
The only reason, I would hesitate to put anything in equities is if you plan to sell all and move all funds to India and in that case equities may be ill advised or investments have to be carefully planned for a proper sideways move. However, if you plan to leave some investments in USA for the long haul, then equities are a must.[/quote]
AAP for sequoia
I am posting the funds in your 401K here from your word document. It makes it a lot easier just clicking it here from the post and then doing further research on the fund.
Fidelity Diversified Intl fund
Oppenheim Developing markets
Neuberger Berman Genesis Trust
Turner Midcap growth
Vanguard Smallcap growth index
Schwab 1000 index fund
Fidelity contrafund
Vanguard Balanced Index
Dodge and Cox balanced
Western asset core bond
Fidelity Diversified Intl fund
Oppenheim Developing markets
Neuberger Berman Genesis Trust
Turner Midcap growth
Vanguard Smallcap growth index
Schwab 1000 index fund
Fidelity contrafund
Vanguard Balanced Index
Dodge and Cox balanced
Western asset core bond
AAP for sequoia
Adding links to the other options in my 401k
Fund name
Class
Notes (5 yr return%, ER%, Morningstar rating)
Brandeis Intl Equity
International
22, 1.12, 4
Longleaf partners
Large cap
11, 0.9, 3
Vanguard Institutional index
Large cap
11.6, 0.03, 3
Sound shore fund
Large cap
14.5, 0.92, 4
Laudus Intl Marketmasters
International
15.7, 1.44, 4
Spartan US equity index
Large cap
11.5, 0.09, 3
Undiscovered managers smallcap
Small cap
10.4, 1.2, 1
Allianz RCM Tech fund
Sector
19.8, 1.26, 4
Lord Abbett Affiliated
Large cap
12.2, 0.81, 3
Allianz smallcap value
Small cap
17.9, 0.82, 5
Harbor capital appreciation
Large cap
11.7, 0.66, 3
American Beacon Large cap Value
Large cap
15.8, 0.83, 4
Northern fund small cap value
Small cap
15.5, 1.0, 4
Baron Small cap
Small cap
15.6, 1.31, 4
Mainstay balanced
Blend
10.25, 0.91, 3
T Rowe Price equity income
Large cap
12.8, 0.69, 4
T Rowe Price Real estate
Real estate
8.8, 1.03,3
Victory diversified stock
Large cap
14, 1.04, 4
Wells Fargo Mid cap value
Mid cap
12.4, 1.25, 3
Baron Asset
Mid cap
17.4, 1.34, 3
Fund name
Class
Notes (5 yr return%, ER%, Morningstar rating)
Brandeis Intl Equity
International
22, 1.12, 4
Longleaf partners
Large cap
11, 0.9, 3
Vanguard Institutional index
Large cap
11.6, 0.03, 3
Sound shore fund
Large cap
14.5, 0.92, 4
Laudus Intl Marketmasters
International
15.7, 1.44, 4
Spartan US equity index
Large cap
11.5, 0.09, 3
Undiscovered managers smallcap
Small cap
10.4, 1.2, 1
Allianz RCM Tech fund
Sector
19.8, 1.26, 4
Lord Abbett Affiliated
Large cap
12.2, 0.81, 3
Allianz smallcap value
Small cap
17.9, 0.82, 5
Harbor capital appreciation
Large cap
11.7, 0.66, 3
American Beacon Large cap Value
Large cap
15.8, 0.83, 4
Northern fund small cap value
Small cap
15.5, 1.0, 4
Baron Small cap
Small cap
15.6, 1.31, 4
Mainstay balanced
Blend
10.25, 0.91, 3
T Rowe Price equity income
Large cap
12.8, 0.69, 4
T Rowe Price Real estate
Real estate
8.8, 1.03,3
Victory diversified stock
Large cap
14, 1.04, 4
Wells Fargo Mid cap value
Mid cap
12.4, 1.25, 3
Baron Asset
Mid cap
17.4, 1.34, 3
AAP for sequoia
Your 401K does not have a total stock market but has diced and sliced, which is fine also.
So here are my suggestions.
Your equity portfolio (considering your large dollar holdings in cash) should be divided as follows:
International = 50%
Domestic US = 50%
International Fund should be all in Fidelity Diversified International = 40%
Oppenheimer developing Markets = 10% (This fund has a front load of 5.75% which is almost always waived for 401K, but you need to check your plan documents or check with 401K cusodian or benefits dept. If the front load is not waived then do not invest in this and put this money also in Fidelity fund suggested above).
Domestic:
Vanguard institutional Index = 32%
Turner Midcap Growth = 4.5%
Wells Fargo Mid Cap value = 4.5%
Vanguard small cap growth = 4.5%
Allianz Small Cap Value 4.5%
For bond funds, you only have Western asset core bond fund. I do not like this fund much but this is the only choice you have and it is not too detestable, will do.
Do you have a money market fund or a stable value fund in your 401K and if so what is the current yield on it and which one is it.
Ideally fixed income should be held in 401K and not in taxable as you have, this is to avoid current taxation on current income from fixed income investments.
Hence if I were you I would instead explore possibility of fixed income (100% in your case) in 401K and equities outside of 401K. Again this has to be done reviewing if you want to leave equity funds invested in USA once you R2I. If not then such equity investments are not advisable, because in your case then they would be short term.
To explore possibilities of fixed income in 401K, compare the returns of money market or stable value fund that you may have in your 401K with the returns on fixed income you are now getting.
Further I would suggest, to dig up a few AAPs and start looking at those to develop your own. First keep money for near term goals aside in safe cash investments.
Long term money should be invested per AAP. If you plan to take the money to India, then develop a plan to shift every month some X dollars to India in NRE account from now on with a target of XXXK transferred by the time you R2I.
Your AAP should take into account, your income in India, your retirement age and your risk tolerance.
Based on your age, your accumulation potential, you seem ultra ultra conservative, perhaps to your detriment. I suggest you reevaluate your risk keeping in mind the long term perfomance of equities.
So here are my suggestions.
Your equity portfolio (considering your large dollar holdings in cash) should be divided as follows:
International = 50%
Domestic US = 50%
International Fund should be all in Fidelity Diversified International = 40%
Oppenheimer developing Markets = 10% (This fund has a front load of 5.75% which is almost always waived for 401K, but you need to check your plan documents or check with 401K cusodian or benefits dept. If the front load is not waived then do not invest in this and put this money also in Fidelity fund suggested above).
Domestic:
Vanguard institutional Index = 32%
Turner Midcap Growth = 4.5%
Wells Fargo Mid Cap value = 4.5%
Vanguard small cap growth = 4.5%
Allianz Small Cap Value 4.5%
For bond funds, you only have Western asset core bond fund. I do not like this fund much but this is the only choice you have and it is not too detestable, will do.
Do you have a money market fund or a stable value fund in your 401K and if so what is the current yield on it and which one is it.
Ideally fixed income should be held in 401K and not in taxable as you have, this is to avoid current taxation on current income from fixed income investments.
Hence if I were you I would instead explore possibility of fixed income (100% in your case) in 401K and equities outside of 401K. Again this has to be done reviewing if you want to leave equity funds invested in USA once you R2I. If not then such equity investments are not advisable, because in your case then they would be short term.
To explore possibilities of fixed income in 401K, compare the returns of money market or stable value fund that you may have in your 401K with the returns on fixed income you are now getting.
Further I would suggest, to dig up a few AAPs and start looking at those to develop your own. First keep money for near term goals aside in safe cash investments.
Long term money should be invested per AAP. If you plan to take the money to India, then develop a plan to shift every month some X dollars to India in NRE account from now on with a target of XXXK transferred by the time you R2I.
Your AAP should take into account, your income in India, your retirement age and your risk tolerance.
Based on your age, your accumulation potential, you seem ultra ultra conservative, perhaps to your detriment. I suggest you reevaluate your risk keeping in mind the long term perfomance of equities.