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Greetings, MonicaAnn, and welcome.

<<My partner's job just started a 401k mutual fund plan (matching 20%). Because we're 30+ years from retirement, things I've read say we should be in an "agressive" fund. I think I'm willing to do that.

I have about 10 fund options to choose from. Four of them have over 90% in stocks and the rest in cash. These funds claim they have "low risk" or "moderate risk" investment styles. Does this mean they are not considered "agressive"?

I think I'm missing something here.

The others are money market, bond, or balanced among stocks/bonds/cash, ranging from "low" to "high risk" investment styles.

No index fund is available.

Should we go for one of the 90% stock funds? (Smart Money gives them "B"s & "C"s). Or choose one of the more balanced funds (Smart Money graded one an "A"). I guess my question is: what's considered agressive? (And, should we be doing that?)

Our only other investment is my 403b fixed annuity with ~$10,000 already in it; $50 is added each month.

Any thoughts on how to chose will be greatly appreciated.>>

"Aggressive" is in the eyes of the beholder. In the absence of an index fund, my approach would be to find the funds investing mostly in stocks, and then choose the one that had a long-term record as close to the S&P 500 total return average as I could find. I would check returns over a 10-year period and each year within that period to find the one that came closest on an annual and overall basis. That fund would be my exclusive choice in a 401k as my "aggressive" choice, and I would keep it until it failed to measure up to the S&P return for two successive years. At that point, I would review my selections again to find another that better fit the S&P match.


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