Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev Thread | Next Thread
Author: jmrut Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 25242  
Subject: Need better results Date: 7/23/2012 8:02 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I have a 401k account that has barely changed values (except going downward) for the last 3 years. It seems stuck at around 100k. This account was set up when I worked for my last company. I left it invested there when I left but now I'm thinking there should be better options out there.

Currently it is at Fidelity. I have half in a BTC Lifepath 2025 account and the other half in INTECH LG CAP Growth.

The other options in the plan include:

Vanguard total stock
IVK Grth & Inc Inst
TCM SM MID CAP Grth
WM Blair Sm Cp Val I
Cap Guardian Intl
Dodge & Cox Intl Stk
Van Tot Intl Stk IS
PIM Total RT Inst
Van Tot BD Mkt Inst
PIM Real return Inst
Intereste income fund
several more lifepath funds

An an option to use Brokeragelink which I think allows you to pick individual stocks.

I'm 54 years old and expect to work another 13 years (at least).

This is probably totally unrealistic but I would like to double my money in the next 10 years. Does anyone have any suggestions? Should I leave it where it is? Move it to diff accounts in the same plan? Move it to a totally different plan?

Thanks,
Rut
Print the post Back To Top
Author: aj485 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 24925 of 25242
Subject: Re: Need better results Date: 7/23/2012 9:03 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
I have a 401k account that has barely changed values (except going downward) for the last 3 years. It seems stuck at around 100k. This account was set up when I worked for my last company. I left it invested there when I left but now I'm thinking there should be better options out there.

Currently it is at Fidelity. I have half in a BTC Lifepath 2025 account and the other half in INTECH LG CAP Growth.


Are you sure your timeframe is really 3 years - since mid-2009? Are you being charged fees in your account? If so, how large?

The reason I ask is that for the past 3 years, Intech Large Cap Growth has 16%+ annualized returns, net of advisory fees https://ww3.intechjanus.com/Janus/Intech/intech;jsessionid=b... and BlackRock Lifepath 2025 has 14%+ annualized returns since inception on 6/30/10 https://www2.blackrock.com/webcore/litService/search/getDocu... and the Fidelity Freedom 2025 Fund (Fideliety Freedom funds were the predecessor funds to the BlackRock Lifepath Funds in my Fidelity 401(k)) has 12%+ annualized returns for 3 years http://fundresearch.fidelity.com/mutual-funds/summary/315792...

So if you had your money in those funds for 3 years, you should be up at least 30% from 3 years ago (mid 2009) - so if your starting balance was $100k, you should be at least to $130k now.

On the other hand, if your starting point was actually mid-2008, or 4 years ago, then I wouldn't be surprised to see your investments fairly flat since then, as that was about when markets started crashing, and if you have left the money in those investments since then, you probably are about even right now, after a big drop in the latter part of 2008.

Alternatively, absent being charged signficant fees, if your timeframe really is 3 years and you've been actively managing this account by moving money from investment to investment, you might want to look at your investment strategies, rather than where the account is held. In this case, the movement of the money is likely what is causing the returns that you are getting.

AJ

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post Back To Top
Author: YewGuise Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 24926 of 25242
Subject: Re: Need better results Date: 7/23/2012 9:21 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
Even if you stay with the same funds, you should at least have Fidelity roll over the 401k to a traditional IRA. That way, at least going forward, you avoid your previous employer's administrative fees.

Print the post Back To Top
Author: mjolah Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 24927 of 25242
Subject: Re: Need better results Date: 7/23/2012 9:25 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I would disagree - possibly. In an IRA, while you probably have no admin fees, virtually everything you buy will be at retail (mutual funds). In the plan, they could (should) be institutional funds and priced much lower (offsetting any admin fees paid by the plan from participant accounts or earnings). Bottom line, look before you leap.

Print the post Back To Top
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 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 24928 of 25242
Subject: Re: Need better results Date: 7/23/2012 9:50 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I agree, look before you leep, but sometimes you get what you pay for and institutional finds, while lower in costs, are not always good investments. At the same time, there are plenty of low cost investments not available in the 401k, such as some ETFs or index mutual funds, that are excellent investments. That said, Fidelity is a good company with excellent online tools should OP choose to direct invest their retirement savings, though mutual funds should be restricted to the no-fee variety.

Fuskie
Who thinks there are are more options available than balancing returns and fees...

Print the post Back To Top
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: 24929 of 25242
Subject: Re: Need better results Date: 7/23/2012 11:44 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I have a 401k account that has barely changed values (except going downward) for the last 3 years.

You are not alone in this problem. The markets have done poorly since 2008. We thought the economy was recovering last year but then came the problems in Europe, which like the mortgage problems in the US will likely take up to 10 yrs to fully resolve.

So you must be patient and wait for better times and make the best choices you can in the meanwhile. There are always some stocks that do better than broad indexes in hard times. Those are the ones you need to seek out. I don't know any mutual funds that do that, but there may be some.

There is much to be said for picking your own stocks while you wait.

Print the post Back To Top
Author: jmrut Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 24930 of 25242
Subject: Re: Need better results Date: 7/23/2012 12:26 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Yes. I think my timeline is off. My money has been in several funds within this group over the last 20 years. It is just in the last 3-4 that I lost down from 120k to its current value of about 102k. It teeters between there and around 98k, never seeming to keep and build on any gains I do achieve.

Print the post Back To Top
Author: aj485 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 24931 of 25242
Subject: Re: Need better results Date: 7/23/2012 1:01 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 3
Yes. I think my timeline is off. My money has been in several funds within this group over the last 20 years. It is just in the last 3-4 that I lost down from 120k to its current value of about 102k. It teeters between there and around 98k, never seeming to keep and build on any gains I do achieve.

Considering that you are still ~$20k down from your peak, I would suggest that you might want examine your investing strategies, and why/when you move money from one investment to another.

For instance, go look at the moves that you made for the last 3 - 4 years. What happened to the investments you moved out of or into before and after you made the moves? Would you have been better off not making the moves at all, making them earlier or making them later? How could you have changed your strategy in order to make the move when it would have been more advantageous?

If you are trying to chase returns by moving money from a recent 'bad' performers to a recent 'good' performers, you are selling low and buying high. That's a mistake that many people make, often to the detriment of their account balances. If you are making that mistake, and don't change your investment strategy, you are unlikely reach your goal of doubling your money in the next 10 years, whether the money remains in the 401(k) or is moved to an IRA.

AJ

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev Thread | Next Thread
Advertisement