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Author: Teeder Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75379  
Subject: How to allocate if 401(k) is un-Foolish? Date: 10/27/1999 11:27 AM
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I currently contribute 6% of my pay to my 401(k) in order to receive the maximum employer match. The investment choices include typical money market, bond, small cap, mid cap, large cap, growth, and international mutual funds plus company stock. Note the absence of an index fund!! I have 30 years until retirement so I have already ruled out the money market and bond funds. (By the way, I'm doing the Foolish Four in my Roth IRA.) Any suggestions?

Thanks!
Teeder
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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 14844 of 75379
Subject: Re: How to allocate if 401(k) is un-Foolish? Date: 10/27/1999 11:43 AM
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Check the performance record of the funds you are offered on Morningstar and ValueLine--available on Quicken via Excite.com. Compare their performance with that of the S&P 500. Then make your best choice within the plan.

You will probably find large cap has the most consistent performance similar to the S&P. International and growth, recently strong, but spotty. But it depends on quality of management. Make the best choice you can, but stay 100% in stocks.

Meanwhile, ask you employer to offer an S&P Index fund like Vanguard Index 500.

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Author: BookmFool Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 14845 of 75379
Subject: Re: How to allocate if 401(k) is un-Foolish? Date: 10/27/1999 11:44 AM
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The investment choices include typical money market, bond, small cap, mid cap, large cap, growth, and international mutual funds plus company stock.

Teeder, you may have to do some good ole' fashioned research. Try to obtain a prospectus from the 5 equity funds, compare the fees and expenses, how long they've been around, then compare each one to similar funds in their respective asset classes, as well as indexes that track each asset class to gauge how they've done against their peers. Of course past returns are no guarantee... blah blah blah. If they have a good track record over at least a 5 year period, preferrably 10 years, make a choice.

Some say it's not important which equity funds you invest in (to a certain extent), but that you are invested in them.

If after all the research you find that they all stink, Roth will be waiting for ya, if you qualify.

Look for other posts on issues I may have missed.

Good luck,

Rick

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Author: GrayWulff Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 14865 of 75379
Subject: Re: How to allocate if 401(k) is un-Foolish? Date: 10/27/1999 4:33 PM
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I agree, check out those prospecti and take the best that's available. You'll probably change jobs in the next few years, then you can roll over into a self-managed IRA.

Oh, and let your feelings be known. Many of us here at Mindless Manufacturing, Inc. complained about the lack of an index funds in our 401k, and guess what? They actually added one! It amazed all of us.

Cheers,
GW

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Author: washu Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 14879 of 75379
Subject: Re: How to allocate if 401(k) is un-Foolish? Date: 10/27/1999 7:52 PM
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Take a look at the link at the end of my Interview. I've written posts suggesting how to evaluate a 401K selection without an S&P index fund.


Washu! ^O^

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