To handle 401k account ourself

[Spvs]

Hi,

My wife's 401k account balance has grown to a substantial size. It is invested in Black Rock US equity market index fund (one of the funds offered by the company). There is an option provided by the company that we can self-manage the 401k account and we are thinking to create a portfolio by ourselves and manage it. We came across a subscription service seekingalpha.com to build the portfolio. We welcome any views on this approach and are open for any other suggestions. This 401k corpus is not tied to our retirement planning and so we can take risk in investment.

Thanks

[SAPPORO]

Far from being an expert but in a similar situation now with my wife's multiple IRA accounts.
I ran the backtest with 60-40 (VTI-VBFMX) allocation with rebalancing annually for the last 25 years and the returns were 6.88%.
The CAGR was 8.62% for VTI and 3.48% for VBMFX separately.
The guaranteed return can be much higher at 6+% at least for the next 10 years with the high rates now. So, my strategy is to invest 60% of the total amount in VTI/SPY to capture 8%+ and the rest in MYGA to get 6.15% (almost the same as the 60-40 return over 25 years) and should come out ahead by a lot in 10 years.
It's better to do high-growth investments like QQQ, ARKK etc.., in an after-tax account (ROTH or brokerage) to avoid RMD issues later on.

Over to the real experts ...

[Spvs]

SAPPRO, I am seeking for a higher return Thanks for your input. Let's hear from experts.

[SAPPORO]

SAPPRO, I am seeking for a higher return Thanks for your input. Let's hear from experts.

Higher returns mean higher risks, and no one should mess with their wife's 401k as it can end in a divorce
QQQ itself has returned 18.58% CAGR in the last 10 years and if it's not high enough you could try TQQQ that has returned 38.12% CAGR or SOXL that has returned 42% CAGR over the last 10 years.
Past performances are not indicative of future results but at least it's better than the crystal ball approach!

[cvs]

Far from being an expert but in a similar situation now with my wife's multiple IRA accounts.
I ran the backtest with 60-40 (VTI-VBFMX) allocation with rebalancing annually for the last 25 years and the returns were 6.88%.
The CAGR was 8.62% for VTI and 3.48% for VBMFX separately.
The guaranteed return can be much higher at 6+% at least for the next 10 years with the high rates now. So, my strategy is to invest 60% of the total amount in VTI/SPY to capture 8%+ and the rest in MYGA to get 6.15% (almost the same as the 60-40 return over 25 years) and should come out ahead by a lot in 10 years.
It's better to do high-growth investments like QQQ, ARKK etc.., in an after-tax account (ROTH or brokerage) to avoid RMD issues later on.

Over to the real experts ...

Hi Sapporo,
Please can u let me know which website you used for back testing?
Thanks
CVS

[SAPPORO]

Far from being an expert but in a similar situation now with my wife's multiple IRA accounts.
I ran the backtest with 60-40 (VTI-VBFMX) allocation with rebalancing annually for the last 25 years and the returns were 6.88%.
The CAGR was 8.62% for VTI and 3.48% for VBMFX separately.
The guaranteed return can be much higher at 6+% at least for the next 10 years with the high rates now. So, my strategy is to invest 60% of the total amount in VTI/SPY to capture 8%+ and the rest in MYGA to get 6.15% (almost the same as the 60-40 return over 25 years) and should come out ahead by a lot in 10 years.
It's better to do high-growth investments like QQQ, ARKK etc.., in an after-tax account (ROTH or brokerage) to avoid RMD issues later on.

Over to the real experts ...

Hi Sapporo,
Please can u let me know which website you used for back testing?
Thanks
CVS

https://www.portfoliovisualizer.com/backtest-portfolio

[Spvs]

SAPPRO, I am seeking for a higher return Thanks for your input. Let's hear from experts.

Higher returns mean higher risks, and no one should mess with their wife's 401k as it can end in a divorce



QQQ itself has returned 18.58% CAGR in the last 10 years and if it's not high enough you could try TQQQ that has returned 38.12% CAGR or SOXL that has returned 42% CAGR over the last 10 years.
Past performances are not indicative of future results but at least it's better than the crystal ball approach!

Thanks for your suggestions.

[JINSAKAI]

Far from being an expert but in a similar situation now with my wife's multiple IRA accounts.
I ran the backtest with 60-40 (VTI-VBFMX) allocation with rebalancing annually for the last 25 years and the returns were 6.88%.
The CAGR was 8.62% for VTI and 3.48% for VBMFX separately.
The guaranteed return can be much higher at 6+% at least for the next 10 years with the high rates now. So, my strategy is to invest 60% of the total amount in VTI/SPY to capture 8%+ and the rest in MYGA to get 6.15% (almost the same as the 60-40 return over 25 years) and should come out ahead by a lot in 10 years.
It's better to do high-growth investments like QQQ, ARKK etc.., in an after-tax account (ROTH or brokerage) to avoid RMD issues later on.

Over to the real experts ...

Hi Sapporo,
Please can u let me know which website you used for back testing?
Thanks
CVS

https://www.portfoliovisualizer.com/backtest-portfolio

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