Investment options of VME 401(K) PLAN
Total Available Funds: 26
| Investment Description |
|---|
| ALLSPRING SPECIAL MID CAP VAL FD 0.5 Shares |
| AMERICAN FD GROWTH FS OF AMERICA R6 1.6 Shares |
| AQR RISK-BALANCED COMMOD STRAT R6 2.7 Shares |
| BLACKROCK HIGH YIELD K 23.7 Shares |
| SCHWAB S&P 500 INDEX FUND-SELECT S 51.8 Shares |
| SCHWAB TARGET 2015 INDEX FUND 9,314.7 Shares |
| SCHWAB TARGET 2020 INDEX FUND 40,595.7 Shares |
| SCHWAB TARGET 2025 INDEX FUND 103,818.5 Shares |
| SCHWAB TARGET 2030 INDEX FUND 35,937.7 Shares |
| SCHWAB TARGET 2035 INDEX FUND 57,558.3 Shares |
| SCHWAB TARGET 2040 INDEX FUND 33,944.1 Shares |
| SCHWAB TARGET 2045 INDEX FUND 61,834.6 Shares |
| SCHWAB TARGET 2050 INDEX FUND 23,978.5 Shares |
| SCHWAB TARGET 2055 INDEX FUND 10,026.7 Shares |
| SCHWAB TARGET 2060 INDEX FUND 11,919.8 Shares |
| SCHWAB TARGET 2065 INDEX FUND 1,001.9 Shares |
| SCHWAB TREAS INFLAT PROT SEC IDX FS 19.7 Shares |
| VANGUARD DEVELOPED MKTS INDEX ADM 90.1 Shares |
| VANGUARD GROWTH INDEX FD ADMIRAL 7.2 Shares |
| VANGUARD MID CAP VALINDEX ADMIRAL 16.4 Shares |
| VANGUARD MID-CAP GROWTH INDEX ADMIRA 13.3 Shares |
| VANGUARD SMALL CAP GROWTH INDEX ADMI 684.6 Shares |
| VANGUARD SMALL CAP VALUE INDEX ADMI 16.5 Shares |
| VANGUARD VALUE INDEX ADMIRAL 53.5 Shares |
| CHARLES SCHWAB TRUST BANK PCRA ACCT Various Shares |
| Notes receivable from participants 4.25-10.50% $ – |
Investment model portfolios
We provide two types of investment model portfolios for VME 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 VME 401(K) PLAN