Investment options of TRANSDIGM INC. 401(K) PLAN
Total Available Funds: 35
| Investment Description |
|---|
| FIDELITY 500 INDEX FUND |
| VG TARGET RET 2030 TRUST II |
| VG TARGET RET 2025 TRUST II |
| AB LARGE CAP GROWTH FUND |
| VG TARGET RET 2020 TRUST II |
| VG TARGET RET 2035 TRUST II |
| VG TARGET RET 2040 TRUST II |
| VANGUARD GROWTH INDEX FUND |
| VANGUARD MID CAP INDEX FUND |
| FIDELITY US BOND INDEX FUND |
| VANGUARD SMALL CAP INDEX FUND |
| AMER FUNDS EUROPACIFIC GROWTH |
| COLUMBIA DIVIDEND INCOME FUND |
| WESTERN ASSET CORE PLUS BD CIT |
| VG TARGET RET 2045 TRUST II |
| VG TARGET RET INC TRUST II |
| BLACKROCK MID-CAP GR EQ FD |
| VANGUARD INTL GROWTH FD |
| FIDELITY TOTAL INTL INDEX FD |
| VG TARGET RET 2050 TRUST II |
| VG TARGET RET 2055 TRUST II |
| MFS MID CAP VALUE FUND |
| VANGUARD EXPLORER FUND |
| VG TARGET RET 2060 TRUST II |
| VANGUARD FEDERAL MONEYMARKET FD |
| VG TARGET RET 2065 TRUST II |
| AMERICAN BEACON SM CAP VAL FD |
| AMERICAN FUNDS AMERICAN BALANCED |
| AMERICAN FUNDS GROWTH FUND OF AMERICA |
| EQUITY INCOME (T. ROWE PRICE) |
| MASSMUTUAL US GOVERNMENT MONEY MARKET |
| SAGIC DIVERSIFIED BOND II GUARANTEED INTEREST ACCOUNT |
| SCHWAB SDB SELF DIRECTED ACCOUNT |
| SCHWAB SDB ROTH SELF DIRECTED ACCOUNT |
| VANGUARD TR INCOME AND GROWTH TRUST |
Investment model portfolios
We provide two types of investment model portfolios for TRANSDIGM INC. 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 TRANSDIGM INC. 401(K) PLAN