KAIVAC, INC. 401(K) PLAN
Invest in KAIVAC, INC. 401(K) PLAN
When it comes to invest in KAIVAC, INC. 401(K) PLAN
- 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 KAIVAC, INC. 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
KAIVAC, INC. 401(K) PLAN provides a list of funds (mutual funds and collective investment trusts — custom-made mutual funds for the plan):
| Investment Options of KAIVAC, INC. 401(K) PLAN (as of 2022) |
|---|
| JH MULTIMANAGER 2060 LIFETIME (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| JH MULTIMANAGER 2050 LIFETIME (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| JH MULTIMANAGER 2045 LIFETIME (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| JH MULTIMANAGER 2040 LIFETIME (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| JH MULTIMANAGER 2035 LIFETIME (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| JH MULTIMANAGER 2025 LIFETIME (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| JH MULTI-INDEX LS AGGRESSIVE (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| FLOATING RATE INCOME FUND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| HIGH YIELD FUND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| JOHN HANCOCK BOND FUND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| OPPORTUNISTIC FIXED INCOME (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| STRATEGIC INCOME OPP FUND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| TEMPLETON GLOBAL BOND FUND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| VANGUARD SHORT-TERM FEDERAL (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| JH MULTI-INDEX LS GROWTH (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| JH MULTI-INDEX LS BALANCED (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| JH MULTI-INDEX LS MODERATE (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| JH MULTI-INDEX LS CONSERV (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| AMERICAN CENTURY HERITAGE (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| AMERICAN FUNDS NEW WORLD FUND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| AMG RIVER ROAD MID CAP VALUE (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| DFA US TARGETED VALUE FUND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| DFA U.S. SMALL CAP FUND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| DODGE & COX INTERNATIONAL ST (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| INVESCO DEVELOPING MARKETS (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| INVESCO SMALL CAP GROWTH (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| JH DISCIPLINED VALUE INTL FUND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| JH DISCIPLINED VALUE MID CAP (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| JOHN HANCOCK MID CAP GROWTH (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| JPMORGAN MIDCAP VALUE FUND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| LORD ABBETT VALUE OPPS FUND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| MID CAP INDEX FUND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| MID VALUE FUND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| REAL EST. SECURITIES FUND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| SCIENCE & TECHNOLOGY FUND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| SMALL CAP INDEX FUND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| SMALL CAP STOCK FUND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| SMALL CAP VALUE FUND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| T. ROWE PRICE HEALTH SCI (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| T. ROWE PRICE SCI & TECH (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| T. ROWE PRICE SML CAP VAL (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| VANGUARD EXPLORER FUND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| VANGUARD MID-CAP GROWTH ETF (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| VANGUARD SMALL CAP GROW INDEX (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| VANGUARD SMALL CAP VALUE INDEX (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| 500 INDEX FUND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| AMERICAN FUNDS EUROPAC GROWTH (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| WASHINGTON MUTUAL INVESTORS (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| BLACKROCK LARGE CAP FOCUS VAL (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| BLUE CHIP GROWTH FUND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| CAPITAL APPRECIATION FUND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| DODGE & COX STOCK FUND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| FIDELITY ADV LEVERAGED CO STK (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| FIDELITY CONTRAFUND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| MUTUAL GLOBAL DISCOVERY (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| INTL EQUITY INDEX FUND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| INVESCO OPP INTL GROWTH FUND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| JOHN HANCOCK DISCIPLINED VALUE (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| JOHN HANCOCK INTL GROWTH (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| JOHN HANCOCK U.S. GROWTH FUND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| JPMORGAN LARGE CAP GROWTH (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| PARNASSUS CORE EQUITY FUND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| VANGUARD GROWTH INDEX FUND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| VANGUARD VALUE INDEX FUND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| VICTORY DIVERSIFIED STOCK (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| AF AMERICAN BALANCED FUND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| AF CAPITAL INCOME BUILDER (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| AF THE INCOME FUND OF AMERICA (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| BLACKROCK GLOBAL ALLOCATION (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| T. ROWE PRICE CAP APPRECIATION (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| DFA INFLATION-PROTECTED SEC (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| FEDERATED HIGH YIELD BOND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
| FIDELITY ADVISOR TOTAL BOND (JOHN HANCOCK LIFE INSURANCE COMPANY) |
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. Once you have decided 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 guide:
| Name | YTD Return | 1Yr AR | 3Yr AR | 5Yr AR | 10Yr Ar | 15Yr Ar | 20Yr Ar |
|---|---|---|---|---|---|---|---|
| Core Four Asset Portfolio | 12.71% | 24.80% | 3.47% | 7.74% | 6.96% | 7.87% | 7.19% |
| Five Core Asset Portfolio | 12.86% | 24.77% | 3.36% | 7.67% | 6.89% | 7.81% | 7.30% |
| Three Core Asset Portfolio | 13.15% | 24.80% | 3.85% | 8.33% | 7.24% | 8.03% | 7.27% |
| Two Core Asset Portfolio | 13.61% | 25.81% | 4.76% | 9.31% | 8.40% | 9.38% | 7.90% |
| Yale Endowment Template | 11.94% | 26.31% | 3.25% | 7.93% | 7.71% | 8.98% | 8.19% |
| S&P 500 Index | 21.08% | 35.64% | 10.34% | 15.86% | 13.13% | 14.08% | 10.63% |
