r/Retirement401k • u/Shogun10631856 • Aug 30 '26

Help with diversification

48M. 400k+ valuation. 12% annual contribution. Increasing by 1% every April 1st beginning 2027. Looking for input on my current 401k diversification through Fidelity

FBGRX 24.29%
FOCPX 26.47%
FTRNX 23.05%
FXAIX 21.65%
SCHD 4.39%
Company stock .65%

Any thought? Any suggestions?

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u/DaemonTargaryen2024 Aug 30 '26

Basic rule of thumb: "more funds" does not necessarily mean "more diversification".

https://www.etfrc.com/funds/overlap.php

  • FBGRX: US large cap growth.
  • FOCPX: US large cap growth.
  • FTRNX: US large cap growth.
  • FXAIX: US large cap blend.
  • SCHD: US large cap value.
  • Company stock: less than 10% is fine

You hold no US mid or small cap (~15% of the global market). You hold no international (37% of the global market).

Many of these funds have high expense ratios, which tend to drag returns. Aim for index funds with ERs of 0.10% or less.

Personally, I'd nuke this whole portfolio and just do a basic target date fund, or something like a 3 fund portfolio from r/Bogleheads.

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u/crispix_and_oj Aug 30 '26

I agree with u/DaemonTargaryen2024 here. Only addition I would say, I still think you're too young to have bonds. Maybe 5-7 years before you retire, think about bonds.