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Author: SBruno Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75617  
Subject: 401k Strategy Date: 4/11/1999 9:16 PM
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I read all I could read on 401k and index funds (from TMF boards of course) and then reallocated my 401k to this mix: 90% S&P 500 and 10% in Magellan. What are your thoughts?

Bruno
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Author: zgriner Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 9877 of 75617
Subject: Re: 401k Strategy Date: 4/12/1999 6:43 AM
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None, except that you chose to put your some of your money into a low-load fund, instead of the S&P fund. How you invest is your choice. As TMF has claimed, an S&P fund is your best long-term, no-brainer choice within a 401K. You could explain why you chose Magellan, too.


Zev

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Author: halby2 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 9905 of 75617
Subject: Re: 401k Strategy Date: 4/12/1999 7:25 PM
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I have 10% of my 401(k) in the Magellan Fund with the remaining 90% in Vanguard's Growth Index (my firm doesn't offer a plain old S&P 500 fund despite my documented protestations). I have 22.47 reasons for keeping a little in Magellan. That's the average annual return of this fund since its inception in May 1963. I realize fund managers will come and go and past performance is no guarantee . . ., but 22.47% annually for 36 years seems like a winning bet in my judgment. Additionally, since this fund is now closed to new investors, I figure they shouldn't waste much on advertisements or gimmicky purchases to induce new investment.

What are your thoughts on my allocation? I'm 30 years old and the other equity fund choices in my 401(k) are the Fidelity Contra Fund and the Fidelity Blue Chip Growth Fund. My IRA's are split equally between an S&P 500 index fund and the Fool's Four.

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Author: zgriner Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 9913 of 75617
Subject: Re: 401k Strategy Date: 4/12/1999 10:46 PM
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...I have 22.47 reasons for keeping a little in Magellan...since its inception in May 1963. I realize fund managers will come and go and past performance is no guarantee

In this case, the manager was very important. What has its return been for the last 5-10 years, ie. the post-Lynch years? Use that to guide your decision. Also, remember that Magellan is now a huge $20? billion fund. It gets much harder to duplicate the older returns.


Zev

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