Investment options of Discover Financial Services 401 K Plan
Total Available Funds: 23
| Investment Description |
|---|
| Dodge & Cox Dodge & Cox International Stock Fund |
| Dimensional Fund Advisors DFA Emerging Market Core Equity Fund |
| Pacific Investment Management PIMCO FOREIGN BOND (U.S. Dollar-Hedged) |
| Pacific Investment Management PIMCO Inflation Response Multi-Asset Fund |
| State Street Global Advisors State Street S&P 500 Index Securities Lending Series |
| JP Morgan Chase Bank JPMCB U.S. Analyst Fund CF-A Class |
| PRUDENTIAL TR CO Jennison Small/Mid Cap Equity Fund |
| State Street Global Advisors State Street Global All Cap Equity Ex-U.S. Index |
| State Street Global Advisors State Street Russell Small/Mid Cap Index Securities |
| State Street Global Advisors State Street U.S. Bond Index Securities Lending |
| State Street Global Advisors State Street Target Retirement Income Securities |
| State Street Global Advisors State Street Target Retirement 2020 Securities |
| State Street Global Advisors State Street Target Retirement 2025 Securities |
| State Street Global Advisors State Street Target Retirement 2030 Securities |
| State Street Global Advisors State Street Target Retirement 2035 Securities |
| State Street Global Advisors State Street Target Retirement 2040 Securities |
| State Street Global Advisors State Street Target Retirement 2045 Securities |
| State Street Global Advisors State Street Target Retirement 2050 Securities |
| State Street Global Advisors State Street Target Retirement 2055 Securities |
| State Street Global Advisors State Street Target Retirement 2060 Securities |
| State Street Global Advisors State Street Target Retirement 2065 Securities |
| The Bank of New York Mellon Mellon EB Temporary Investment Fund II |
| and 9.50% |
Investment model portfolios
We provide two types of investment model portfolios for Discover Financial Services 401 K Plan participants. You can customize and follow a model portfolio in your plan account.
Types of portfolio strategies
- Strategic asset allocation portfolio: It invests in a diversified portfolio of multiple assets, buy-and-hold without frequently changing the asset allocation weights.
- Suitable: For long-term (more than 15 years, preferably more than 20 years), want to be tax efficient and can withstand interim drawdown or loss as high as 50% or more.
- Pros:
- Less error-prone
- Infrequent rebalancing or transactions
- Tax efficient for taxable brokerage investments
- Cons:
- Interim loss or drawdown can be substantial
- Possible low returns for an extended period, such as 10 years or longer
- Tactical asset allocation portfolio: it invests in a diversified portfolio of multiple assets, dynamically adjust stock and bond allocations to minimize losses during market stress.
- Suitable: For long-term (more than 10 years or preferably longer) capital. Investors are willing to rebalance as frequent as monthly.
- Pros:
- Reduce large interim loss or drawdown
- Less sensitive to investment entry point
- Likely to improve returns
- Cons
- Demand more frequent rebalancing or transactions
- Less tax efficient — more suitable in a tax-deferred account such as 401(k) or IRA
- Can experience a period of lower returns compared to a broad-based strategic allocation or a buy-and-hold benchmark, especially in some bull markets
These portfolios are proactively monitored and rebalanced on a monthly basis when needed, ensuring it remains in line with its target allocation.
Let us know (Email us) if you need help to create a custom model portfolio for your plan.
Retirement Plan (401(k)) Info for Discover Financial Services 401 K Plan