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Author: mrmarkymark Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 25612  
Subject: Looking For Feedback Date: 12/10/2005 9:13 AM
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I just enrolled in my companies 401K match program and these are the choices I have:

Managed Income Fund (97859)
Fidelity Freedom Income Fund (0369)
Fidelity Retirement Money Market Portfolio (00630)
Fidelity Freedom 2000 Fund (00370)
Fidelity Government Income Fund (00054)
Fidelity Freedom 2005 Fund (01312)
PIMCO Total Return Fund (99474)
Fidelity Freedom 2010 Fund (00371)
Fidelity Puritan Fund (00004)
Fidelity Freedom 2015 Fund (01313)
Spartan U.S. Equity Index Fund (00650)
Fidelity Freedom 2020 Fund (00372)
American Funds Washington Mutual Investors Fund (93267)
Fidelity Freedom 2025 Fund (01314)
Harbor Capital Appreciation Fund (92171)
Fidelity Freedom 2030 Fund (00373)
Spartan Extended Market Index Fund (00398)
Fidelity Freedom 2035 Fund (01315)
TCW Galileo Value Added Fund (44975)
Fidelity Freedom 2040 Fund (00718)
Vanguard Explorer Fund – Admiral class (45377)
Dodge & Cox International Stock Fund (46960)

Any feedback here is good feedback for me. :)
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Author: ttu2k One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 19724 of 25612
Subject: Re: Looking For Feedback Date: 12/10/2005 10:56 AM
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I'll go ahead and give you some Foolish and Fuskie advice:

1. Figure out an investment strategy with which you are comfortable and find funds that match it.

Are you risk tolerant - can you stand the ups and downs of the market over the long-haul?

2. Figure out an asset allocation strategy and find funds that match it.

US, International, Small Cap, Mid Cap, Large Cap, etc.

Post that information, and I am positive you will receive the type of informative response you are seeking.

Just look at my previous post, and you will understand.

Just a hunch, but unless you are close to retirement, the funds listed from Managed Income Fund to Fidelity Freedom 2010 Fund are probably not what you are looking for. This includes all other funds listed as "Income" funds.

The Freedom 20xx Funds are funds that have the "appropriate" risk strategy for the targeted year of your retirement. As that year (say, 2040) approaches, risk is adjusted along the way. So, if you choose the 2040 fund (year 2040 as your targeted retirement), it will have a higher risk portfolio today than it will in, say, 2030 where it will generally move more to an income-based portfolio.

Funds I have had in the past and my thoughts (my target retirement is 2035):

Fidelity Puritan - fairly low-risk, won't beat the S&P, might track it.

American Funds Wash. Mutual Inv. - I was in this but moved out because it was underperforming the market.

Spartan - I liked this fund, as it was tracking fairly well at the time I had it.

When I initially started my 401(k), I was following some strategies that held the idea that you should have two funds - S&P 500 Index Fund, and a n Indexed Bond Fund - at a 60/40 mix. I went with a 75/25 mix.

Since then, I have grown to appreciate a portfolio that assumed more risk (small and mid caps), and also included an International fund.

But that's my preference. If you are new to 401(k), I'd start out with the S&P Index fund, and a targeted fund (Freedom 20xx) - mix it however you'd like. At the same time, I'd track other funds I was interested in btu didn't know enough about to see how well they did.

- ttu2k

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Author: foolazis Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 19726 of 25612
Subject: Re: Looking For Feedback Date: 12/10/2005 11:26 AM
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There are a couple of funds I recognize:

PIMCO Total Return Fund (VTTRX or VTRAX, depending on share class) is an excellent five-star bond fund. I have this one available in my 401(k), though I'm young enough now not to have a position in bonds.

Vanguard Explorer (VEXPX)is a decent four-star mid-cap growth fund which underperformed a few years ago, but has done well in its category the last 3 years. (0.57% expense ratio). I have a position in this fund in my own 401(k).

Dodge and Cox International Fund (DODFX) is a top-rated international value fund. It is in the top 1% of funds for its category for the 3 year returns. It has a low expense ration for an international fund (0.77%). Dodge and Cox is an excellent family of low expense funds with a strong value-oriented investment style. I have a poition in their stock fund (DODGX) and have been extremely happy with them. This would make an excellent fund for the foreign stock component of your asset allocation.

I see you have access to a couple of Fidelity's good, low cost index funds. These would make a good core portion of your portfolio, though I'm not personally familiar with Fidelity's funds.

Just my feedback on the funds I know about.

foolazis



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Author: PayingFool Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 19728 of 25612
Subject: Re: Looking For Feedback Date: 12/10/2005 1:18 PM
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PIMCO Total Return Fund (VTTRX or VTRAX, depending on share class) is an excellent five-star bond fund.


Actually, those would be PTTRX or PTRAX.

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Author: bighairymike Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 19730 of 25612
Subject: Re: Looking For Feedback Date: 12/10/2005 2:59 PM
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My suggestion is to set yourself up with a little spreadsheet with the following columns:

Fund Name
Style (eg Large Cap Value, Small Cap Growth, etc)
Investment Objective
Expense Ratio
Load (if any)
Manager Name and Tenure
Dividend Yield
One Year Performance
Five year Perfformance
Ten Year Performance
Morningstar Rating

Then get thee over to morninstar.com and fill out the spreadsheet for as many of your funds as you can find.

At the end of this exercise you will be much better informed and likely can pare the list of candidates down to a mere handful that are suitable to you...





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Author: foolazis Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 19731 of 25612
Subject: Re: Looking For Feedback Date: 12/10/2005 4:03 PM
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Actually, those would be PTTRX or PTRAX

My oopsie. Posted before looking. At least my typo didn't cost me $225 million dollars.

foolazis

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Author: Fuskie Big funky green star, 20000 posts Top Favorite Fools Old School Fool Ticker Guide SC1 Red Winner of the 2010 Rule Breakers Challenge Answer Team Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 19732 of 25612
Subject: Re: Looking For Feedback Date: 12/10/2005 4:30 PM
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I'll go ahead and give you some Foolish and Fuskie advice:

Wow, I didn't even open my mouth!

Fuskie
Who is not sure his advice deserves to be served up with such great company...

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Author: foolazis Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 19734 of 25612
Subject: Re: Looking For Feedback Date: 12/10/2005 5:39 PM
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Fuskie,

Your reputation precedes you! That can be good or bad, personally, I think its a good thing.

foolazis

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Author: ttu2k One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 19736 of 25612
Subject: Re: Looking For Feedback Date: 12/10/2005 11:45 PM
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Hey, I give credit where credit is due! Fuskie has a very Socratic approach causing you to think a little more about the question you are posing.

I asked a question similar to mrmarkymark, so I thought I'd go ahead and apply Fuskie's response to my question.

At any rate, the Fool has an outstanding, amicable community...hard to find on the Internet these days!

- ttu2k


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