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Retirement Discussions / Retirement
|Subject: Re: Am I in the right stock mix for my 401K||Date: 5/1/2011 5:51 PM|
|Author: Howie52||Number: 257 of 297|
Well, when faced with a large number of choices, you have to do
something to narrow the field - like putting them into comparable
boxes and then comparing the expense ratios of the ones in the
same "box" and throwing out the ones that charge a bunch.
Another option is to compare turnover ratios.
The "Lifepath" approach tends to tell you what someone else
thinks about portfolio diversification - and fits you where
they think you should be.
sometimes, you have to look at your own needs and your own
views about money. Would you lose sleep if your 401K lost
values over a year? Do you worry about volatility?
What this leads to is a recommendation that few folks really
want to hear - you need to read the prospectus of the options
and compare what they say they do to invest and compare
that with you're own views and personality.
I will say that Dodge and Cox has a good reputation.
Vangard and Fidelity have a lot of fans.
Columbia has some funds with good results but I worry
about cost ratios.
Disclosure - I own Columbia Acorn Fund via the old Acorn Fund
being taken over a while back. The older fund was a "No Load" fund
which Columbia ain't. I would not recommend any "loaded" fund
but in the 401K world, I do not think you will find any other
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