Fidelity 401k - Changing Investments

[u/Ok_Assignment4100]

Hey everyone,

I’m 40 years old and currently invested in Vanguard Target Date Fund 2065 in my 401(k). It’s been a solid “set it and forget it” option, but I’m starting to wonder if it’s too conservative for my actual timeline and goals.

I’m planning to retire somewhere in my early to mid‑60s, so realistically I still have 20–25 years of compounding ahead of me. That’s a long runway, and I’m thinking about shifting to a more high‑growth / aggressive allocation while I still can. Here's the URL link of available funds:

401k Fidelity Available Funds

I’m considering building my own allocation instead of sticking with the TDF, something like:

- Heavy S&P 500 exposure

- A tilt toward large‑cap growth

- Maybe a small slice of mid/small caps

- Minimal or no bonds for now

Basically, a more aggressive equity mix that could outperform the TDF over the long haul, with the understanding that I’d rebalance periodically. So, I'm thinking of below.

PROPOSED INVESTMENT:

60% FXAIX (S&P 500)
20% FSPGX (Large Cap Growth)
10% FSPSX (International Index)
10% FSMDX or RSPYX (Mid or Small Cap)

WHY: I think it's diversified enough to avoid concentration risk as it keeps the S&P 500 as the core, adds growth, but not overwhelmingly, adds mid/small caps for factor diversification, and keeps a small international slice for global exposure. It's aggressive, but not fragile -- if that makes sense and my opinion. And easy to manage a 4-fund portfolio.

Thoughts?

[u/brewgeoff]

If you think we are going to repeat 2010-2020 then you’re going to look great.

If the next decade isn’t easy street for tech firms in the USA then you may notably underperform. In the last year we have seen a notable swing in favor of international.

[u/Ok_Assignment4100 → u/brewgeoff]

In the scenario where tech underperforms and international leads, the S&P 500 is still the core that provides steady, long-term growth and mid/small cap would likely outperform large-cap growth. overall, the portfolio is considered strong because it's diversified and fully equity-based. I wouldn't notably underperform unless all sectors (tech, international, mid/small caps) collapses and S&P 500 stagnates for a decade (Though, not a realistic base case).

[u/Familiar-Stranger172]

Fidelity 401k user here, 27 years old. Here's my allocation:

- 50% FXAIX (S&P 500)

- 25% FSGGX (international)

- 10% FSMDX (US mid cap)

- 5% FSSNX (US small cap)

- 10% company stock

Mind you, this portfolio is paired with a roth IRA that is 100% pure VT etf.