A few days ago I wrote about my internal struggles in determining what is the best allocation of funds for my 401(k). Well, I’ve gone back and forth, again and again trying to figure out the best move. The biggest constraint is simply the funds available in my 401(k). I’m not horribly comfortable throwing 100% of my money in a single fund – I just don’t have a lot of options!
So, here is what I’ve decided to do. Your comments are always welcomed!
- 75% of my 401(k) is now locked up in the Pimco Total Return Admin – PTRAX Fund. The fund has performed well over its life, and should provide stable returns to the 401(k) during this upcoming period of what I believe will be market non-performance.
- 25% of my 401(k) is allocated across a series of different funds that have exposure to domestic and international stocks.
As with all projections mine are bound to be wrong. Timing, size of the move, all of these things will be wrong in some respect. I could be totally wrong and the market could take off like crazy! Who knows.
Here is the brass tacks of my logic. PTRAX has performed consistently since its inception. It continually provides returns year over year. If I am right and the market absolutely falls apart, it is possible that PTRAX will suffer some losses, but they should be very small compared to the overall stock market. If I am totally wrong and the market rips up from here, well… I’ll still make money. Sure, it will be a bit less than a fully setup stock portfolio, but it will still provide very nice returns overall.
That is pretty much it, should be interesting to see what happens.
If things begin to slide as I expect – you can be sure that I’ll be looking to throw even more money at PTRAX. The other options I have are pretty much useless, so who knows. If you are a seller of PTRAX, I have a large block buy coming in 
