UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next
Author: adrake Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: 401k Allocations Date: 5/22/1998 12:16 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Greetings! I am a total newbie here, but hoping that someone might be able to shed some light on the decision for how to allocate 401k existing balances and future contributions. The fund manager thru my employer is T.Rowe Price and currently gives the following choices:

1. Equity Index Fund (S&P 500 Index)
2. Science & Tech. Fund (Lipper S&T Fund Index)
3. New Era Fund (Lipper Nat.Resource Fund Avg)
4. Int'l Stock Fund (Lipper Int'l Fund Avg)
5. New Income Fund (Lehman Bro. Agg. Bond Indx)
6. Equity Income Fund (Lipper Eq. Income Fund Avg)
7. Capital Appreciation Fund (Lipper Cap. App. Avg)
8. Prime Reserve Fund (90 Day Treas. Bills)

I am committed to the long term here, and the Sci/Tech fund shows the best return since inception (21.73% since 1987), second is the Equity Index fund at 17.43% since 1986, and third is the Equity Income Fund at 17.25% since 1985.

The above would indicate where to spread the $$ to gain the best return, but I am not convinced that Sci/Tech won't take a big hit at some point.

Also, I have read in other messages about people using self directed IRA's for rollover of 401k funds, in order to choose the investments that you want. Is that the way to go? Can you rollover funds into something like this if you are planning to stay with the same employer long term?

I know another consideration is the employer match. Currently there is no match for my position, but they are changing effective June 1 to a match program depending on the company's performance. If the company makes plan it will be 50% match of the current 4% salary cap. If it does better, it could be up to the full 4% match, if not, it could be 25% or less.

Any ideas would be appreciated!
ADrake
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Tax Strategies

TMFPMarti-Feeling Good
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement