I was just checking out my 401k as I recently received a pay raise and wanted to up my contribution %. I max the contribution + employer match every year, but want to make that a little faster/sooner in the year.

Looking at the balance vs cost basis for the target date fund I notice they are very closely aligned, which is a bit concerning. As in, is this actually worth it to continue putting money in the TDF, or should I start diverting into something that is a bit more aggressive? I value growth over risk, for the most part.

Some basic details:

Brokerage: Fidelity

401k type: pre-tax

Distribution:

BTC LPATH IDX 2050 M (Blended fund): 219k balance, 217k cost basis

FXAIX (via BrokerageLink): 18k balance, 20k cost basis

In my taxable account I hold

FXAIX: 37k

My employer stock: 170k (I know I'm over exposed here, prefer not to debate this aspect)

In my Roth IRA (all backdoor'd from traditional, maxed every year)

FXAIX: 39k

BRK-B: 6k

Should I just leave the TDF alone? I'd love some advice on how to think about the TDF while reconciling the 2k difference between cost basis and balance. I'm 37 years old, if relevant.

Thanks for any input.

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nkyguy1988 t1_jegsdrt wrote on March 31, 2023 at 10:19 PM

Depending when you started buying shares, it's just a function of the market and where things are over the last 15 months.

beautifulstain OP t1_jegz28b wrote on March 31, 2023 at 11:09 PM

Makes sense. I definitely overlooked this point.

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Cruian t1_jegva6p wrote on March 31, 2023 at 10:41 PM

Why so heavily tilted towards US large caps?

>As in, is this actually worth it to continue putting money in the TDF,

When did you start investing in it? Was any of it rolled over from another retirement account?

beautifulstain OP t1_jegy2xp wrote on March 31, 2023 at 11:02 PM

I started contributing around 2014, but not maxing until maybe 2018 or so (can’t remember exactly). No rollover from another account.

I focused on S&P500 index mainly for simplicity, not much strategy here.