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MyPlanIQ.com is the only web application that offers advanced asset allocation strategies customized to a wide range of retirement and taxable investment plans such as 401(k), IRA and brokerage accounts. The unique key advantages of MyPlanIQ.com are 1. Superior investment strategies with high... More
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  • Intel Corporation -- Leader in Technology -- Leader in Retirement 0 comments
    Oct 26, 2010 6:05 PM | about stocks: SPY, VTI, EFA, VEU, EEM, VWO, IYR, VNQ, ICF, AGG, BND, IVV, IYY, IWV, VV, DLN, RSP, SCHX, HYG, JNK, PHB, AOM, AOK, CIU, BIV, AOR, AOA, GWL, IDHQ, IVE, IUSV, JKF, VTV, SPYV, PWV, RPV, SCHV, SCZ, EFV, PID, DWM, IGOV, BWX, WIP, IOO, VT, TLT, TLH, IEF, EDV, VGLT, TLO, PLW, IVW, IUSG, JKE, VUG, SPYG, QQQ, RPG, SCHG, IJJ

    Intel Corporation was incorporated in California in 1968 and reincorporated in Delaware in 1989 and is the world's largest semiconductor chip maker, based on revenue. They develop advanced integrated digital technology products, primarily integrated circuits, for industries such as computing and communications. Integrated circuits are semiconductor chips etched with interconnected electronic switches. Intel also develops platforms – defined as integrated suites of digital computing technologies that are designed and configured to work together to provide an optimized user computing solution compared to components that are used separately.

    Intel's goal is to be the preeminent provider of semiconductor chips and platforms for the worldwide digital economy. Their 401K plan is certainly in the top tier in terms of returns for participants.

    Intel Corporation 401(k) Savings Plan's 401K plan consists of 63 funds. These funds enable participants to gain exposure to 5 major assets: US Equity, Foreign Equity, Emerging Market Equity, REITs and Fixed Income.

    The list of minor asset classes covered:

    Conservative Allocation: AOK
    Convertibles: CWB
    Diversified Emerging Mkts: EEM, GMM, PXH, DEM, SCHE
    Emerging Markets Bond: PCY
    Equity Precious Metals: DBP
    Foreign Large Blend: EFA, VEU, GWL, PFA
    Foreign Large Value: EFV, PID, DWM
    Foreign Small/mid Value: SCZ
    High Yield Bond: HYG, JNK, PHB
    Inflation-protected Bond: TIP
    Intermediate-term Bond: AGG, CIU, BIV, BND
    Large Blend: IVV, IYY, IWV, VTI, VV, SPY, DLN, RSP, SCHX
    Large Growth: IVW, IWZ, JKE, VUG, ELG, QQQQ, RPG, SCHG
    Large Value: IVE, IWW, JKF, VTV, ELV, PWV, RPV, SCHV
    Long Government: TLT, TLH, IEF, EDV, VGLT, TLO, PLW
    Long-term Bond: CLY, LQD, BLV, VCLT
    Mid-cap Blend: IJH, IWR, JKG, VO, MDY, EMM, PJG, DON, EZM, MVV
    Mid-cap Growth: IJK, IWP, VOT, EMG, PWJ, RFG, UKW
    Mid-cap Value: IJJ, IWS, JKI, VOE, EMV, PWP, RFV, UVU
    Moderate Allocation: AOM
    Multisector Bond: AGG, GBF, BND, LAG
    Real Estate: IYR, ICF, VNQ
    Small Blend: IJR, IWM, JKJ, VB, DSC, PJM, DES, SAA, UWM, SCHA
    Small Growth: IJT, IWO, JKK, VBK, DSG, PWT, RZG, UKK
    Small Value: IJS, IWN, JKL, VBR, DSV, PWY, RZV, UVT
    Us Equity: IVV, IYY, IWV, VTI, VV, SPY, DLN, RSP, SCHX
    World Allocation: AOR, AOA
    World Bond: IGOV, BWX, WIP
    World Stock: IOO, VT

    As of Oct 25, 2010, this plan is rated as above average based on MyPlanIQ Plan Rating methodology that was designed to measure how effective a plan's available investment funds are. It has the following detailed ratings:

    Diversification -- Rated as great (99%)
    Fund Quality -- Rated as below average (32%)
    Portfolio Building -- Rated as above average (82%)
    Overall Rating: above average (72%)

    The chart and table below show the historical performance of moderate model portfolios employing strategic and tactical asset allocation strategies (SAA and TAA, both provided by MyPlanIQ).

    For comparison purposes, we include the moderate model portfolios of a typical 5 asset SIB (Simpler Is Better) plan. This SIB plan has the following candidate index funds and their ETFs equivalent:

    US Equity: SPY or VTI 
    Foreign Equity: EFA or VEU 
    REITs: IYR or VNQ or ICF 
    Emerging Market Equity: EEM or VWO
    Fixed Income: AGG or BND

    Performance chart (as of Oct 25, 2010)

    Performance table (as of Oct 25, 2010)

    Currently, asset classes in Emerging Market Equity (EEM, VWO), REITs (IYR, VNQ, ICF) and Fixed Income (AGG, BND) are doing relatively well. These asset classes are available to Intel Corporation 401(k) Savings Plan participants.

    Having a large number of funds and five asset classes enable both strategic and tactical asset allocation to perform to optimal levels. Note that even in the strategic asset allocation there will be some styles rotation to slightly improve returns.

    To summarize, the Intel Corporation 401(k) Savings Plan plan gives participantsthe ability to build a solid portfolio to achieve good investment returns using asset allocation strategies that are tailored to their risk profiles.

    Currently, the tactical asset allocation strategy indicates overweighing on Emerging Market Equity, REITs and Fixed Income funds.

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