HARRIS ASSOCIATES L.P. PROFIT SHARING AND SAVINGS PLAN Investment Options
Constructing a Balanced, Diversified Asset Allocation Portfolio: A Guide for Participants in Harris Associates L.P. Profit Sharing and Savings Plan
Learning how to construct a balanced and diversified asset allocation portfolio is crucial for achieving your long-term financial goals. This article offers a systematic four-step RAID approach (Risk Assessment, Asset Allocation, Investment Selections, and Disciplined Rebalancing) to help you navigate your investment options effectively.
Available Investment Options
- SCHWAB FUNDS SELF-DIRECTED BROKERAGE ACCOUNTS
- OAKMARK SELECT REGISTERED INVESTMENT COMPANY
- OAKMARK GLOBAL SELECT REGISTERED INVESTMENT COMPANY
- OAKMARK INTERNATIONAL SMALL CAP REGISTERED INVESTMENT COMPANY
- HARRIS ASSOCIATES OAKMARK CIT COLLECTIVE INVESTMENT TRUST
- HARRIS ASSOCIATES OAKMARK EQUITY & INCOME CIT COLLECTIVE INVESTMENT TRUST
- HARRIS ASSOCIATES OAKMARK GLOBAL CIT COLLECTIVE INVESTMENT TRUST
- HARRIS ASSOCIATES OAKMARK INTERNATIONAL CIT COLLECTIVE INVESTMENT TRUST
- VANGUARD SM CAP INDEX ADM REGISTERED INVESTMENT COMPANY
- VANGUARD TGT RMT INC INV FUND REGISTERED INVESTMENT COMPANY
- VANGUARD TGT RMT 2020 INV FUND REGISTERED INVESTMENT COMPANY
- VANGUARD TGT RMT 2025 INV FUND REGISTERED INVESTMENT COMPANY
- VANGUARD TGT RMT 2030 INV FUND REGISTERED INVESTMENT COMPANY
- VANGUARD TGT RMT 2035 INV FUND REGISTERED INVESTMENT COMPANY
- VANGUARD TGT RMT 2040 INV FUND REGISTERED INVESTMENT COMPANY
- VANGUARD TGT RMT 2045 INV FUND REGISTERED INVESTMENT COMPANY
- VANGUARD TGT RMT 2050 INV FUND REGISTERED INVESTMENT COMPANY
- VANGUARD TGT RMT 2055 INV FUND REGISTERED INVESTMENT COMPANY
- VANGUARD TGT RMT 2060 INV FUND REGISTERED INVESTMENT COMPANY
- VANGUARD TGT RMT 2065 INV FUND REGISTERED INVESTMENT COMPANY
- VANGUARD TTL BD MKT IDX ADM FUND REGISTERED INVESTMENT COMPANY
- VANGUARD INST IDX INST FUND REGISTERED INVESTMENT COMPANY
- VANGUARD TTL INTL STK INDEX ADM FUND REGISTERED INVESTMENT COMPANY
- VANGUARD TREASURY MONEY MARKET FUND REGISTERED INVESTMENT COMPANY
Major Asset Classes Covered
The investment options provided cover the following major asset classes:
- US Stocks
- International Stocks
- Emerging Market Stocks
- Real Estate Investments (REITs)
- Bonds
Step 1: Risk Assessment
Your risk profile will guide how much of your portfolio should be allocated into stocks versus bonds. Key questions to consider include:
- What is your risk tolerance?
- How old are you?
- What is your current job stability?
- What are your growth expectations?
To help you construct your own risk profile and decide your stock allocation, please refer to this resource.
Step 2: Asset Allocation
Your next step is to determine how to allocate your investments across major asset classes. Based on various risk profiles (conservative, moderate, aggressive), templates are available to guide your decisions. You can find allocation templates here.
Step 3: Investment Selections
Once you have determined your asset allocation, it's time to select specific funds for each asset class. Low-cost index funds are particularly important for the stock portion of your portfolio. Among the available options, consider using:
- US Stocks: VANGUARD INST IDX INST FUND
- International Stocks: VANGUARD TTL INTL STK INDEX ADM FUND
- Bonds: VANGUARD TTL BD MKT IDX ADM FUND
Step 4: Disciplined Rebalancing
Regularly monitor your portfolio and rebalance it to maintain your desired asset allocation. This involves buying or selling assets to ensure your portfolio stays aligned with your original asset allocation strategy.
Example: Constructing a Moderate Asset Allocation Portfolio
Let's assume you're constructing a portfolio using the asset allocation of 36% US Stocks, 18% International Stocks, 6% REITs, and 40% Bonds. For this allocation, you would use:
- 36% US Stocks: VANGUARD INST IDX INST FUND
- 18% International Stocks: VANGUARD TTL INTL STK INDEX ADM FUND
- 6% REITs: (If applicable, REIT options are limited here)
- 40% Bonds: VANGUARD TTL BD MKT IDX ADM FUND
In conclusion, a balanced and diversified asset allocation portfolio can pave the way for financial stability and growth. Use the RAID approach outlined in this article to take charge of your retirement planning through the Harris Associates L.P. Profit Sharing and Savings Plan.
Basic asset allocation templates
The following asset allocation templates are based on popular lazy portfolios. These are core or major asset class-based portfolios using ultra-low-cost index funds for each asset class. Once you have decided on your proper risk asset (stocks) allocation, you can utilize these lazy portfolio templates to scale the allocations to your risk allocation level. See Asset Allocation Portfolio Templates for a guide:
| Name | YTD Return | 1Yr AR | 3Yr AR | 5Yr AR | 10Yr AR | 15Yr AR | 20Yr AR | Inception |
|---|---|---|---|---|---|---|---|---|
| Four Core Asset Portfolio | 0.15% | 6.41% | 7.04% | 7.64% | 6.17% | 7.33% | 6.67% | 6.40% |
| Five Core Asset Portfolio | -0.10% | 6.36% | 6.88% | 7.50% | 6.10% | 7.22% | 6.74% | 6.59% |
| Three Core Asset Portfolio | -0.16% | 6.27% | 7.74% | 8.08% | 6.53% | 7.59% | 6.79% | 6.32% |
| Two Core Asset Portfolio | -2.59% | 6.22% | 8.17% | 8.51% | 7.57% | 8.72% | 7.47% | 6.79% |
| Yale Endowment Template | 0.78% | 7.44% | 6.54% | 7.59% | 6.63% | 8.19% | 7.45% | 7.67% |
| S&P 500 Index | -3.90% | 9.87% | 13.73% | 16.05% | 12.31% | 13.43% | 10.14% | 8.29% |
Recent Articles
- Navigating the ExxonMobil Savings Plan: A Guide to Low-Cost Index Investing
- Cadence Design Systems Inc. 401(k): A Plan with Low-Cost Target Date and Index Funds
- Warren Buffett's Phenomenal Run: The Oracle May Retire, But His Legacy Endures
- May 2025 MyPlanIQ Portfolio Update
- One Fund Does It All
- Target Date Funds for Young Professionals
- Top 10 Target Date Fund Providers for Retirement Investing
- The One-Fund 401(k) Portfolio: Simple Yet Does Its Job
- Roth IRAs for Retirees
Free newsletters
High quality resources for 401k, 403b, 529 retirement plans on investment, contribution, fees, retirement planning and much more ...
Puzzled on what to invest?
- We ask a few questions to decide your personal return and risk expectations
- We build a custom portfolio for your plan (401(k), 403(b), 529 ...) or for a brokerage account
- We monitor and send timely rebalance emails on what investment funds to buy and sell
Looking for ideas to generate income?
- ETF or mutual fund income portfolios for 4-7% annual income
- Dividend stock funds
- Passive real estate investments
- more ...
Portfolio Calculator (Simulator)
Customize Asset Allocation Portfolios
Retirement Calculator
Investment Calculator
Looking for a (forgotten) 401(k)?
Find plan contact info, plan expenses, investment options, rollover your old plan, or learn how to select investments on your 401k plan ...