Investment options of STEPTOE & JOHNSON PLLC 401(K) PLAN
Total Available Funds: 32
| Investment Option List |
|---|
| VANGUARD FEDERAL MONEY MARKET (VMFXX) |
| MORLEY FINANCIAL SERVICES, INC. STABLE VALUE FUND |
| BLACKROCK BLACKROCK INFLATION PROTECTED BOND (BPRIX) |
| DIAMOND HILLS FUNDS LARGE CAP FUND CLASS I (DHLRX) |
| JP MORGAN TRUST LARGE CAP GROWTH R6 (SNIGX) |
| EAGLE SERIES TRUST MID CAP FUND CLASS I (HAGIX) |
| IVY FUNDS HIGH INCOME FUND I (IVHIX) |
| COHEN & STEERS COHEN & STEERS INSTITUTIONAL REALTY SHARES (CSRIX) |
| MFS DISC MFS NEW DISCOVERY VALUE FUND R6 (NDVBX) |
| JOHN HANCOCK FUNDS DISCIPLINED VALUE MID CAP R6 (JVMRX) |
| METROPLITAN WEST TOTAL RETURN BOND FUND (MWTIX) |
| AMERICAN FUNDS EUROPACIFIC GROWTH FUND R6 (FEPUX) |
| AMERICAN FUNDS NEW PERSPECTIVE FUND R6 (FFPNX) |
| AMERICAN FUNDS AMERICAN BALANCED FUND R6 (GBLAX) |
| VANGUARD SMALL CAP INDEX FUND ADMIRAL SHARES (VSMAX) |
| VANGUARD MID CAP INDEX FUND ADMIRAL SHARES (VIMAX) |
| VANGUARD LARGE CAP INDEX FUND ADMIRAL SHARES (VLCAX) |
| VANGUARD TOTAL BOND MARKET INDEX FD ADMIRAL SHARES (VBMFX) |
| VANGUARD TOTAL STOCK MARKET INDEX FD INVESTOR (VTSMX) |
| SHARES |
| VANGUARD EMERGING MARKETS STOCK INDEX FUND ADMIRAL SHARES (VEMAX) |
| VANGUARD INSTITUTIONAL TARGET RETIREMENT (VTINX) |
| VANGUARD INSTITUTIONAL TARGET RETIREMENT 2020 (VTWNX) |
| VANGUARD INSTITUTIONAL TARGET RETIREMENT 2025 (VTTVX) |
| VANGUARD INSTITUTIONAL TARGET RETIREMENT 2030 (VTHRX) |
| VANGUARD INSTITUTIONAL TARGET RETIREMENT 2035 (VTTHX) |
| VANGUARD INSTITUTIONAL TARGET RETIREMENT 2040 (VFORX) |
| VANGUARD INSTITUTIONAL TARGET RETIREMENT 2045 (VTIVX) |
| VANGUARD INSTITUTIONAL TARGET RETIREMENT 2050 (VFIFX) |
| VANGUARD INSTITUTIONAL TARGET RETIREMENT 2055 (VFFVX) |
| VANGUARD INSTITUTIONAL TARGET RETIREMENT 2060 (VTTSX) |
| VANGUARD INSTITUTIONAL TARGET RETIREMENT 2065 (VSXFX) |
Investment model portfolios
We provide two types of investment model portfolios for STEPTOE & JOHNSON PLLC 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 STEPTOE & JOHNSON PLLC 401(K) PLAN