Last week I reviewed Morningstar’s Free X-Ray Tool using my own 401(k). I believe that most people should leave their retirement accounts alone, both in terms of invading it and asset allocation within the account. I personally take a very balanced, hands off approach to my 401(k), choosing to look at my 401(k), as I should…an account I won’t be touching for 30 to 40 years.
As such, I actively made the decision not to reallocate or change anything since I started contributing about a year ago. My original allocation vs. how it worked out over the past year:
| Fund | Targeted Allocation | Actual Allocation |
| Amer Funds EuroPac Grth R3 | 5% | 5.1% |
| Amer Funds Growth Fund R3 | 25% | 23.7% |
| Oppenheimer Str Income A | 2% | 1.9% |
| Oppenheimer Glob Opp A | 10% | 11% |
| Oppenheimer Value A | 15% | 14.8% |
| Oppenheimer Sm & Mid Cap Val A | 10% | 10% |
| Neuberger Ber Partners Adv | 10% | 10.4% |
| Oppenheimer Intl Bond Fund A | 3% | 2.8% |
| Neuberger Ber Regncy Trust | 15% | 15.5% |
| AIM Real Estate C | 5% | 4.8% |
Using Morningstar X-Ray Evaluation to Reallocate my 401(k)
This above allocation led to the following Morningstar X-Ray* evaluation:
First thing I should mention is my expense ratio. While an expense ratio of 1.1% is not great, when compared to low fee index funds, I do not have low fund index options within my 401(k). This 1.1% is worth it considering my match, and sometimes a 401(k) is better than an IRA.
The next thing I noticed that my cash position of (6%) is a little high considering my age and risk tolerance; however, I am comfortable with my 70% U.S. Stock, 18% Foreign Stock, and 4.5% Bon positions.
Instead of selling and repositioning, I have decided to just alter my future contributions:
| Fund | Targeted Allocation | Actual Allocation | Future Allocation |
| Amer Funds EuroPac Grth R3 | 5% | 5.1% | 5.5% |
| Amer Funds Growth Fund R3 | 25% | 23.7% | 26% |
| Oppenheimer Str Income A | 2% | 1.9% | 1.5% |
| Oppenheimer Glob Opp A | 10% | 11% | 10% |
| Oppenheimer Value A | 15% | 14.8% | 15.5% |
| Oppenheimer Sm & Mid Cap Val A | 10% | 10% | 10.2% |
| Neuberger Ber Partners Adv | 10% | 10.4% | 10.3% |
| Oppenheimer Intl Bond Fund A | 3% | 2.8% | 2.5% |
| Neuberger Ber Regncy Trust | 15% | 15.5% | 15% |
| AIM Real Estate C | 5% | 4.8% | 3.5% |
We will see how my allocation does going forward! What are your thoughts? Should I have done something different?
Want to try Your Free Morningstar Portfolio X-Ray Evaluation*?
Evan
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