Back in September 2011, I mentioned that my husband had relinquished complete control of our 401k accounts to little ol’ me. I shared where we were at and some of my plans, but that was it. I didn’t do an update about what I was actually doing or how our balance was looking. So, here’s an update on our 401k account and what’s going on with it.
Before:
Our Contribution Elections Were:
Alger Capital Appreciation (ALCCX) = 40%
BlackRock Global Allocation Fund Inc. (MCLOX) = 10%
Davis New York Venture Fund (NYVCX) = 10%
Ivy Mid Cap Growth Fund C (WMGCX) = 40%
We were contributing 6% to our 401k and there wasn’t any kind of employer match.
Now:
Our Contribution Elections Are:
Alger Capital Appreciation (ALCCX) = 9%
BlackRock Global Allocation Fund Inc. (MCLOX) = 10%
Davis New York Venture Fund (NYVCX) = 1%
Ivy Mid Cap Growth Fund C (WMGCX) = 10%
JPMorgan Government Bond Fund C (OGVCX) = 70%
So pretty much, all I did was change the allocations. I wanted to acquire some lower-priced stocks but still contribute a bit to the ones I liked best. Yesterday, I changed our contribution election from 6% to 8%, but I’m not sure how long it takes to go into effect. I know that a 2% difference isn’t much, but I wanted to do something more than we were, also one of my goals for 2012 was to increase our contribution.
2% sounded like a good number but not something radical enough to really impact our finances. Sam, the Financial Samurai suggested that I increase it by 4%. I’m compromising by doing 2% now, and then after our finances have adjusted to the change, I’ll add another 2%, for a total of 10%.
In the near future, I’m planning to acquire another low priced stock that I think will do well in the long run. Honestly, I haven’t done any research or learning about all this stuff yet. Hopefully, by the time I do my next update I won’t be saying that again. It’s just hard to know where to start.
What do you do with your 401k?
Nice job on ramping up your savings. I do the minimum, but that’s also because I maximize my roth contributions.
Thanks Corey.
I can’t wait until the day we’re able to max out our Roth.
Nice charts! Keep on turning the savings screw, so if this month you’re doing fine with your 2% increase, increase it again by another 1% a month til it hurts and then stop and readjust!
Sam
You’re killin’ me here, Sam. 😉
Why so much in bonds?
The only one that I know to be bonds is the JP Morgan, but I could be totally wrong. If that’s what you’re talking about, then I just wanted to spread things out and get some at lower prices. If I’m totally wrong and have others too, please let me know.
Yes, I meant to say why so much in stocks…. I think the allocation is much improved. Some of the funds have high expense ratios (ALCCX is 2%).. are your choices limited by the 401K plan?
Yep, there are only about 12 or so that we can choose from, but that’s okay. We’re trying to build up our Roth IRA this year too. We won’t rely just on the 401k. Also, I’ve got a ton to learn about all this stuff.