TEXAS BANK 401(K) PLAN Investment Options
Basic steps for TEXAS BANK 401(K) PLAN investments
- Understand Your Goals and Risk Tolerance: Consider your retirement goals, time horizon, and risk tolerance when choosing investments. Are you saving for retirement, or do you have other financial goals in mind? How comfortable are you with market fluctuations?
- Diversification: Diversification is key to managing risk in your investment portfolio. Spread your investments across different asset classes (e.g., stocks, bonds, cash equivalents) and sectors to reduce the impact of market volatility.
- Asset Allocation: Determine the appropriate mix of assets for your investment portfolio based on your goals and risk tolerance. This may involve allocating a percentage of your portfolio to stocks, bonds, and cash equivalents.
- Review Investment Options: Evaluate the investment options available within TEXAS BANK 401(K) PLAN (see below for more detailed investment options). Look for funds with low fees, consistent performance, and a track record of meeting their investment objectives.
- Consider Target-Date Funds: Target-date funds are a popular option for retirement savings because they automatically adjust the asset allocation over time based on your expected retirement date. These funds can be a convenient option for investors who prefer a hands-off approach to investing.
- Monitor and Rebalance: Periodically review your investment portfolio and make adjustments as needed. Rebalance your portfolio to maintain your desired asset allocation and ensure it remains aligned with your goals and risk tolerance.
- Seek Professional Advice: If you’re unsure about which investments to choose or how to allocate your assets, consider seeking advice from a financial advisor. They can help you develop an investment strategy tailored to your individual needs and circumstances.
By following these steps, you can set up a 401(k) plan and choose investments that align with your long-term financial goals and objectives. Remember that investing involves risk, and it’s important to carefully consider your options and seek professional advice if needed.
Investment Options
TEXAS BANK 401(K) PLAN provides a list of funds (mutual funds and collective investment trusts — custom-made mutual funds for the plan):
Total Available Funds: 40
| Investment Description |
|---|
| STATE STREET CORP. RUSSELL LARGE CAP GROWTH INDEX |
| STATE STREET CORP. RUSSELL LARGE CAP VALUE INDEX |
| STATE STREET CORP. RUSSELL SMALL CAP GROWTH INDEX |
| STATE STREET CORP. RUSSELL SMALL CAP VALUE INDEX |
| VANGUARD VANGUARD INFLATION PROTECTED SECURITIES ADMIRAL |
| VANGUARD VANGUARD 500 INDEX ADMIRAL |
| VANGUARD VANGUARD REAL ESTATE INDEX ADMIRAL |
| VANGUARD VANGUARD INTERNATIONAL VALUE INVESTOR |
| VANGUARD VANGUARD HIGH YIELD CORPORATE ADMIRAL |
| VANGUARD VANGUARD INTERNATIONAL GROWTH ADMIRAL |
| VANGUARD VANGUARD LIFESTRATEGY GROWTH INVESTOR |
| VANGUARD VANGUARD LIFESTRATEGY CONSERVTIVE GROWTH INVESTOR |
| VANGUARD VANGUARD LIFESTRATEGY INCOME INVESTOR |
| VANGUARD VANGUARD MID CAP GROWTH INDEX ADMIRAL |
| VANGUARD VANGUARD MID CAP VALUE INDEX ADMIRAL |
| VANGUARD VANGUARD SMALL CAP GROWTH INDEX ADMIRAL |
| VANGUARD VANGUARD SMALL CAP VALUE INDEX ADMIRAL |
| AMERICAN FUNDS YOURPATH AMERICAN FUNDS 2010 MODERATE |
| AMERICAN FUNDS YOURPATH AMERICAN FUNDS 2015 MODERATE |
| AMERICAN FUNDS YOURPATH AMERICAN FUNDS 2020 MODERATE |
| AMERICAN FUNDS YOURPATH AMERICAN FUNDS 2020 CONSERVATIVE |
| AMERICAN FUNDS YOURPATH AMERICAN FUNDS 2025 MODERATE |
| AMERICAN FUNDS YOURPATH AMERICAN FUNDS 2030 GROWTH |
| AMERICAN FUNDS YOURPATH AMERICAN FUNDS 2030 CONSERVATIVE |
| AMERICAN FUNDS YOURPATH AMERICAN FUNDS 2030 MODERATE |
| AMERICAN FUNDS YOURPATH AMERICAN FUNDS 2035 CONSERVATIVE |
| AMERICAN FUNDS YOURPATH AMERICAN FUNDS 2035 MODERATE |
| AMERICAN FUNDS YOURPATH AMERICAN FUNDS 2040 GROWTH |
| AMERICAN FUNDS YOURPATH AMERICAN FUNDS 2040 MODERATE |
| AMERICAN FUNDS YOURPATH AMERICAN FUNDS 2045 MODERATE |
| AMERICAN FUNDS YOURPATH AMERICAN FUNDS 2045 CONSERVATIVE |
| AMERICAN FUNDS YOURPATH AMERICAN FUNDS 2045 GROWTH |
| AMERICAN FUNDS YOURPATH AMERICAN FUNDS 2050 MODERATE |
| AMERICAN FUNDS YOURPATH AMERICAN FUNDS 2055 MODERATE |
| AMERICAN FUNDS YOURPATH AMERICAN FUNDS 2055 GROWTH |
| AMERICAN FUNDS YOURPATH AMERICAN FUNDS 2060 MODERATE |
| PIMCO INTERNATIONAL BOND US DOLLAR HEDGED INST. |
| PIMCO COMMODITYREALRETURN STRATEGY INSTITUTIONAL |
| WESTERN ASSET WESTERN ASSET CORE PLUS BOND CLASS IS |
| BAIRD AGGREGATE BAIRD AGGREGATE BOND CLASS INSTITUTIONAL |
How to invest
Key principles in retirement investing:
- Proper asset allocation among stocks and bonds, the two major assets. Proper assess your risk tolerance level based on your age, financial situation, personal emotional level to tolerate up and down, and retirement expectation.
- Invest in (ultra) low cost index funds if possible. Don’t get caught up with flashy funds.
- Invest for a long term: financial markets are up and down and investment values are subject to fluctuation. However, viewed as business investments, you can be assured that diversified funds (stocks and bonds) have solid business fundamental that eventually will deliver inflation beating returns for stocks.
See Four-Step Guide for 401(k) Retirement Investing.
Basic asset allocation templates
The following asset allocation templates are based on popular lazy portfolios. These are core or major asset class-based portfolios using ultra-low-cost index funds for each asset class. Once you have decided on your proper risk asset (stocks) allocation, you can utilize these lazy portfolio templates to scale the allocations to your risk allocation level. See Asset Allocation Portfolio Templates for a guide:
The return data shown below all have the same latest date: 04/23/2025.
| Name | YTD Return | 1Yr AR | 3Yr AR | 5Yr AR | 10Yr AR | 15Yr AR | 20Yr AR | Inception |
|---|---|---|---|---|---|---|---|---|
| Four Core Asset Portfolio | -2.42% | 5.80% | 4.16% | 7.44% | 5.75% | 6.69% | 6.58% | 6.28% |
| Five Core Asset Portfolio | -2.65% | 5.82% | 4.04% | 7.30% | 5.66% | 6.59% | 6.66% | 6.47% |
| Three Core Asset Portfolio | -2.83% | 5.55% | 4.94% | 7.88% | 6.11% | 6.93% | 6.68% | 6.20% |
| Two Core Asset Portfolio | -5.24% | 5.34% | 5.30% | 8.39% | 7.13% | 8.14% | 7.37% | 6.67% |
| Yale Endowment Template | -1.90% | 6.89% | 3.01% | 7.26% | 6.09% | 7.57% | 7.38% | 7.55% |
| S&P 500 Index | -8.27% | 7.31% | 9.28% | 15.66% | 11.67% | 12.40% | 9.97% | 8.08% |
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