How can I setup HBPP in 401k with limited choices?

[neil]

I am trying to build HBPP in my 401k.

For stocks:
There're a few stock mutual funds, I pick one, vanguard total stock market.

For LTT:
Only two intermediate bonds and one TIPS.

For Cash:
there is a stable fund

For Gold:
None

My questions are:
1, can I use stable fund as cash?
2, can I use TIPS as LTT?
3, I have Roth account, is it best way to purchase gold/LTT in roth and keep stocks/cash in 401k? Then how can I rebalance?

thanks

[MediumTex]

In most 401(k) plans, the only really suitable PP investment choice is a broad equity index fund.

A stable value fund provides nothing like the safety of t-bills, but it can be used for the cash piece if there is no other choice.

401(k) plan bonds funds are rarely suitable for any PP purpose.

401(k) plans typically have nothing that would be helpful for the gold piece.

Many 401(k) plans do have "brokerage windows" that allow you to treat you 401(k) plan account essentially like an IRA.  Check and see if your plan offers one.  They are normally not advertised much or at all in plan documentation so you may need to ask several people.  If you have a brokerage window, you've got it made for PP purposes--you can just go buy VTI, GLD, TLT and SHY and be done.

My employer offers a brokerage window in the 401(k) plan and I feel very fortunate to have this resource available to me.

[moda0306]

I would give my left arm for a brokerage window right about now.

[neil]

Called HR There is no brokerage window.

[MediumTex]

Called HR There is no brokerage window.

Find out who is on the 401(k) plan committee or whatever committee makes the plan design decisions.  Send them a note telling them they should add a brokerage window to the plan because it would allow sophisticated investors such as yourself (and presumably some of those on the committee) to construct safer portfolios than are offered in the plan's current investment lineup.

[AdamA]

Just use it for the stocks, maybe the cash, and then bite the bullet and start buliding your gold and bond positions
in taxable accounts.

You won't have a 25% x 4 right away obviously, but I think it's better to do it this way than to settle for suboptimal
investment vehicles.

[captain3d]

I mentioned in a new thread about the possible use of leveraged etfs to 'temporarily' help get a PP like balance when funds are limited outside 401k's etc. This again may (or may not) be better than sticking with the poor choices inside your 401k. either way you should strive to build the real thing as soon as possible and avoid these compromises. I would be happy to use the leveraged ETF's in the short term.

http://gyroscopicinvesting.com/forum/ht ... ic.php?t=8

phil