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URL:  http://boards.fool.com/cliff-congtastulations-you-are-wise-to-begin-22574755.aspx

Subject:  Re: New 401k Plan Date:  6/4/2005  12:43 AM
Author:  dsemmler Number:  46320 of 74759

Cliff,

Congtastulations. You are wise to begin now. I like the VIEIX, and my profile shows my favorite stock is VEXMX, the non-institutional equivalent. I wonder if the VINIX is appropriate for someone as young as you. It is all large-cap companies. Maybe that's what you want. I prefer VEXMX, and I own no S&P 500 emulators.

Thanks, I actually began my accumulation phase a few years back after I had eliminated all of my debt and I keep wishing I had started even sooner. One question that I have for you, why would large-cap companies be less appropriate for someone my age? Is it because their growth potential is rather limited and I am not taking full advantage of the time duration until retirement?

You might consider RWMFX, which has a value-oriented slant and an impressive track record. The fund is huge, but the management costs are low. I assume you won't have to pay the front-end load. I think you also get some international exposure. But the RERFX sounds good too. I would eliminate (or at least reduce) the VINIX and go into RWMFX and/or RERFX.

At the time, I hadn't really considered the American Funds (RWMFX, RERFX, RICFX) because I have never had any exposure to that company of funds and don't know anything about them. But the more I am looking at the fund choices and thinking about my allocation, I am leaning towards adding in the RERFX to pick up the international exposure.

BTW, you are correct that there is no front-end load on RWMFX or any of the other funds in the plan.

Thanks for the feedback!

dt
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