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Financial Planning / Foolish 401(k)s


Subject:  Re: 401K portfolio distribution Date:  9/26/2013  2:08 PM
Author:  Fuskie Number:  25152 of 26128

Generally, I steer away from any fund with a turnover of 50% or higher and look for funds with expense ratios under 1.0. However, just because the fund tracks an index or has a low expense ratio does not mean it's a good investment. At age 35, I would not put too much money into a bond index fund, maybe 5-10% of your portfolio. And an expense ratio of .50 to .60 is not bad, especially for a managed fund that automatically adjusts your risk/reward balance as you approach retirement.

Whose only concern with high turnover rates is that the fund doesn't hold on to a company long enough for it to perform, limiting fund growth...
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