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401k and Personal Finance

Bounce back in my old 401k

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I did not do anything with my 401k when I left my old employer about one year ago. The past year was also a year of hugh up and downs. I managed not to do anything with it in the past year: no re-balance, no jump in and jump out, no rollover to IRA, and no withdrawl either. Here is the record in past year.

One Year
10-09-2008 to 10-08-2009: +16.90%

half year
03-09-2009 to 10-08-2009: +65.80%

YTD
01-01-2009 to 10-08-2009: +26.10%

Current asset allocation (100% equity)
39% US large cap, 23% US small cap, 30% Non-US developed market, 5% Non-US emerging market, 3% company stock.

CRM Mid Cap Value Institutional
CRIMX (MorningStar): I found this one at my current employer 401k plan. Why did not I saw it last year when I enrolled in this? I don’t know (the answer: it was added on August 1, 2009). This one looks real good, I mean, 5 year performance compared to S&P 500 index fund. So I go ahead and change my future investments: switch all the allocation from S&P 500 index fund to this one.

In the mutual fund world, size does matter. It’s harder to manage larger fund and get above average performance.

Vanguard REIT Index Fund
VGSIX (MorningStar): I also found out we have this REIT fund now (don’t know whether it was there last year?). Anyway the boom/bust of REIT fund was interesting to me…will do some research.

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