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
How can I setup HBPP in 401k with limited choices?
Moderator: Global Moderator
Re: How can I setup HBPP in 401k with limited choices?
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.
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.
Q: “Do you have funny shaped balloons?”
A: “Not unless round is funny.”
A: “Not unless round is funny.”
Re: How can I setup HBPP in 401k with limited choices?
I would give my left arm for a brokerage window right about now.
"Men did not make the earth. It is the value of the improvements only, and not the earth itself, that is individual property. Every proprietor owes to the community a ground rent for the land which he holds."
- Thomas Paine
- Thomas Paine
Re: How can I setup HBPP in 401k with limited choices?
Called HR
There is no brokerage window. 


Last edited by neil on Mon Aug 29, 2011 12:43 pm, edited 1 time in total.
Re: How can I setup HBPP in 401k with limited choices?
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.neil wrote: Called HRThere is no brokerage window.
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Q: “Do you have funny shaped balloons?”
A: “Not unless round is funny.”
A: “Not unless round is funny.”
Re: How can I setup HBPP in 401k with limited choices?
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.
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.
"All men's miseries derive from not being able to sit in a quiet room alone."
Pascal
Pascal
Re: How can I setup HBPP in 401k with limited choices?
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
http://gyroscopicinvesting.com/forum/ht ... ic.php?t=8
phil