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Financial Planning / Foolish 401(k)s


Subject:  Re: 401K portfolio distribution Date:  9/26/2013  3:42 PM
Author:  pauleckler Number:  25155 of 26128

Usually a 401k has a S&P 500 or Total Stock Market index fund.

Or look for a large cap fund if you have neither of the above.

It's great that you got the message about funds with high expense ratios and management fees. But keep in mind that is most useful if you are trying to decide between similar funds. Performance is far more important in selecting a mutual fund. Performance can get your 20% or more per year; expense ratio tends to cost you 1% or so.

Performance can be difficult to predict, and past history does not predict the future. But a well managed fund should be able to consistently beat the averages. Performance history is a good start provided you are talking about broad fund. Sector funds can over concentrate and have good numbers for a while and then fade.
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