Hi all, I have been reading through this forum for many years and have learned a great deal from the many helpful posts that I have looked through. I would like some "friendly" advice on my current positions - the bulk of my portfolio resides in my 401k, as follows :

+OAKBX = 50%

+ FAIRX = 25%

+ PRPFX = 10%

+ OAKGX = 10%

+ EUROX = 5%

Am I crazy with the above allocations ? My portfolio has held up pretty well in the recent markets, so I have hesitate to make any changes - any advice would be greatly appreciate

bugcat,

Do you have an asset allocation plan?

The first thing that jumps out at me is that your portfolio would appear to have some very unusual deviations from broad market benchmarks.  For instance, internationally, almost all of your exposure is in Europe, with roughly a third of that in "emerging" eastern Europe.  Is there a reason you have such concentrated exposure there and essentially no exposure to the developed and emerging economies of Asia and Latin America?

Currently, it looks like your portfolio has roughly one-third in cash and high quality bonds and two-thirds in stocks, with roughly one-third of the stocks being foreign issues.  If you are comfortable with that rough asset allocation, I think I would simplify your portfolio to something like this:

75%  OAKBX
25%  OAKGX

Some potential issues with this portfolio are that there is quite a bit of overlap between the equity holdings of the two funds, the international portfolio is heavily geared toward Europe, and there is little to no emerging markets exposure.

I don't see that FAIRX really adds much.  I think the combo of OAKBX/OAKGX gives you a similar "top-level" exposure in a more diversified and potentially steadier vehicle.

PRPFX simply seems to "pollute" people's portfolios.  I think you need to assess what about the fund you like, and get that exposure for cheaper elsewhere.  If you want exposure to physical metals, buy GLD or SLV or CEF in your IRA at a discount brokerage.

I'd dump EUROX even though it is your only current exposure to emerging market equities because it is too expensive and undiversified.  Emerging markets may produce good returns over the coming decades, but how good?  If you think they might outperform developed markets by 2% annualized over the next couple decades, you'll be losing almost all of that advantage to the 1.97% expense ratio.

Without knowing more about your financial situation, including all your 401k options, its hard to give better advice.

I don't think your current allocation is crazy, but I do think it is needlessly complicated.

'tato
 

 Being a 60 yr old guy who was lucky enough   in 1998 and Move most of my $ out of All Equity Indexes into Balanced Funds 5 yrs before my Retirement yr. goal and it saved my Butt by doing so.....

I take a different approach vs all this Diversification stuff and ending up with alot of different Funds in different sectors and different % allocations = Trying to Guess which will do better and it's just guessing vs.  just Invest Equally & the Hell with it..>KISS

Unless your Pretty good at Selecting  Which Sectors to be in every yr? I'd just go with OAKBX, OAKGX & FAIRX ....and  with the past 5 ( Bull Market) yrs ave about 17%+ from them and No downside and even very good odds are making Gains in a Bear Market? Let them decide and Why take on more Risk with Such an Important Amt. of $  for retirement?

Unless your Not making and able to save enough, to Have enough when that time comes? I wouldn't take on more risk..

If After I have funding my Retirement Plans and Have extra $? Sure, do some gambling and have some fun vs going to Vegas, The Track or otherwise..

I remember in 87' going thru Black Monday  and worse yet? 2000 thru the 1st qtr of 03' and  I was never so happy to have moved into those Balance & Bond Funds..while my Buddies were Loosing $, even though they had an ave of a 80/20 Port of Index Funds and Active Managed Funds..  It took them about all of the 03' recovery just to get back to even, thus they were miserable all those yrs.. Granted they didn't Loose That Much with that % allocation mix, but they still Didn't MAKE money either while watching Treasuries and Bond Funds make all the $ ( tot. Ave of +33% over those 3 yrs on Bonds and  ended up with a total of "0" from their Equities )

And throw in owing Tech Funds/stocks? They were Miserable, while I had to just keep my mouth shut and not brag about my Balanced Funds Making $..

and "Plan accordingly" , meaning? If those 3 funds ave out to say only doing 12-14% APY? And you figured you Need More to meet your Financial Planning for Retirement? Then you Just add More $ to them and not take more risk to make up Not saving more $..(Again, if you can )...even adding an extra 10% to your Retirement funding  can make the difference..over a period of 20-30 yrs.....

At least that's the way I was  given advice and Thus I just bit the bullet and set aside more $ for Savings and spent alittle Less on Everything else...And if you can have it done thru payroll deduction? You( and the Wife) won't even see it and she will adjust to  spending alittle less too.. or force You and Her to be more conservative in spending habits..

Especially if have Kids, inwhich they want to spend way too much on them ( btwn $50k+on College and $20-$50k on Weddings ) and sacrifice your retirement Funding in the process...Kids have to too much of  this " Self Intitlement" attitude , alot ofwhich comming from The Colleges marketing that attitude , since they Are For Profit businesses and HS teachers supporting their own Profession as well..

DKP50, I think we share the same thoughts.  I have never been an allocation guy - I just look @ what has been lost or gained, and with this portfolio, it might not be the largest in year over year gain, but I am certainly not loosing money.  My goal is to make 10%-15% a year on my 401k.  If you have addtional thoughts, I am open to them !