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Author: phooley Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75379  
Subject: Re: 401K - $$ allocation Date: 12/17/1999 10:28 PM
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What are typical/good percentage amounts to invest 401K dollars (ie: 10% foreign, small caps, etc). I have decided to put 10% in FBSCX (ASAF Founders Intl), 15% JOGBX (jANUS oVERSEAS GR), 25% JSCBX (Janus small cap gr.), 10% MARBX (Marisco Cap. Gr.), 40% JCGBX (Janus Cap. gr.). Any opinions would be appreciated!

We don't know your specifics -- age, other investments and savings, expected retirement date, marital status, etc. -- and we don't know which other funds/investment options are available to you within the 401(k) -- and especially, we do not know whether you will be eligible for an employer match.

But we can comment on the funds you have mentioned. I would suggest that you check them via www.morningstar.com .
Fund      Deferred           Expense
Symbol Sales Charge % Ratio %

JCGBX 6.00 2.20

JOGBX 6.00 2.60

JSCBX 6.00 2.20

FBSCX 6.00 2.60

MARBX 6.00 2.25
All these funds look (at first glance) to have been good performers, YTD. MARBX has large holdings of QualComm, which "inflates" its performance. I don't mean "artificially inflates" -- their gains are legitimate. It was obviously partly luck that put them into the stock. But they will have to keep selling QCOM as it goes up, limiting their profits from it, compared to what you could do if you started out with a similar $$ investment in QCOM. Guess that's just a ramble...

Morningstar doesn't have performance or risk ratings for any of these funds.

The expense ratios look high to me. I prefer mutual funds with expense ratios below 1%.

Probably, as long as you leave the funds invested with this fund family, you will be able to avoid the 6% deferred sales charge. Again, we don't know your other choices -- such as your employer's company itself? Bond funds? Money market, to allow some "bottom fishing" for Y2K?

The usual advice in a 401(k) is, when your situation permits, to maximize the employer match; this might mean contributing 6% or 8%, for example, of your salary to the 401(k). But if your employer is not matching your contributions, the high expense ratios of these funds would bother me -- they could make it hard for your account to appreciate properly. (An alternative for some of your funds might be a Roth IRA.)

BTW, I looked at some of your funds via Yahoo!, since Morningstar didn't have ratings; the ones I sampled have outperformed the S&P 500 Index in bull markets, and have underperformed the S&P in bear markets. (Not too surprising, or alarming -- just something to be aware of.)

BTW, TMF provides quotes for mutual funds as well as stocks -- but I haven't had much luck finding info on mutual funds here -- I rely on Morningstar, or Yahoo!, as well as the fund family's website.

TMF does have boards that perhaps would be of benefit to you -- one on 401(k)s, and at least one on mutual funds. Look for them via the "Board"/Find combination below.

Hope this helps!
Phooley
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