Here are my new 401k Options:Large Cap Value (John A. Levin & Co. Fund)Large Cap Growth (Dresdner RCM Fund)Waddell & Reed Advisors Accumulative FundMid Cap Value (Wellington Mgmt. Fund)Mid Cap Growth (Artisian Partners)Small Cap Value (Berger Fund)Small Cap Growth (Times Square)International Blend (Bank of Ireland)Global Value (Morgan Stanley Find)Core Bond FundS&P 500 Index FundGuaranteed Income FundIf I'm reading the Guides here on the Fool correctly the ONLY thing I should put my money in is th S&P 500 Index Fund right?This Money will not be touched Till I decide to retire.I put in (15%)$5,360.47 per year and the max in a IRA with IVE, IJJ, and IJS index funds (ISHARE) through Buy and Hold. Almost 34% of my income goes to investments. I want to not worry when I retire about living expenses, So much so I am trying to find ways to put in 25%+ to put as close to the allowed $11,000 into my 401(k)This $11,000 is it MY contributions or include my Employers as well?
Hello Dartel. As usual, what you decide to do...depends. I mean, looking at the investments you already have, how will your 401k's funds fit in with what you already have? What are you trying to acomplish with these funds? Are you trying to fill in the holes with a particular asset style you don't invest in yet? You mentioned the IShares you're already invested in, they are IVE- the value portion of the S&P 500, IJJ- the value portion of the S&P Midcap 400/BARRA index and IJS- the value portion of the S&P Small-cap 600/BARRA index. I see a trend leaning towards value in small, mid and large cap equities. So, if you invest in the S&P 500 index fund, you'll then further increase your allocation to the value stocks of the S&P 500, while adding the rest of the stocks in the S&P 500 that are classified as growth stocks. Make sure you understand how each investment plays with the others, so to speak.My move would be to research several of these funds to see if I could find some that wouldn't overlap the asset styles I already have, like a growth fund (but you may wish to avoid small-cap growth index funds, if that's what your option is, as this has historically been the worst equity class, as discussed here: http://www.efficientfrontier.com/ef/701/sg.htm and here: http://www.efficientfrontier.com/ef/499/scg.htm ), a foreign fund or a bond fund. These are just my opinions though.HTHBookm
My Intention was for my IRA to be a buffer and my 401(k) to be agressive aggresive agre..LOL got the picture? I wanted the 401 to be a Growth <High Risk> I guess to get all I can. But I am getting the impression fom the Fools writups that I should not do this that Index funds are my only real choice :-( yet I read in other places that I am young and should go High Risk I am 37 and want to insure my retirement years are payed for without me having to work if I deside not too
I had IVW in the IRA but when I did a compare graph on Quicken IVE, IJJ and IJS were MUCH better options so I sold the IVW my CSCO, SATC, BCON stocks and pooled it all into the IVE, IJJ, and IJS.. I am a novice and hoping to figure out what I am doing soonso I can set it and forget it till I retireSorry for the 2nd reply
Hello again Dartel:My Intention was for my IRA to be a buffer and my 401(k) to be agressive aggresive agre...Ok, got it. Sorry to the board members for posting this again, but here's something to think about regarding aggressive investments:http://boards.fool.com/Message.asp?mid=13489102But I am getting the impression fom the Fools writups that I should not do this that Index funds are my only real choiceIt's not that they're your only choice, but the odds of finding managed funds that will beat the market averages in the next decade or two is no small task. Add to that the countless studies that indicate past performance of mutual funds is not a useful tool in determining future performance. Then we can talk about how the average expense ratio for these other funds has been quoted as being from about 1.2% to 1.5%, compared to index funds which are about a third of that. There is also research that blames the underperformance of these fund most often on their high fees and expenses. I can only say that for myself, I tried the fund picking route, and I wasn't successful. Even with a subscription to Mutual Funds Magazine (if you can believe that). ;-)I am 37 and want to insure my retirement years are payed for without me having to work if I deside not tooThere a a bunch of online calculators that can help a little with this. kind of like a "if I put this much away and earn this much of a return for this many years, this is what I'll have for retirement" kind of thing. Here's the Fools version:http://www.calcbuilder.com/cgi-bin/calcs/SAV2.cgi/themotleyfoolHere are a few more:http://www.fool.com/calcs/calculators.htm?ref=PFinAgBottom line, if you remain consistent by adding a fixed percentage (like 10% or more) of money to your 401k and/or other retirement vehicles, and utilize one or a combination of Foolish investment strategies, you should accomplish this in 25 years or so. And depending on whether or not you've been saving for retirement for the past 5, 10 or 15 years, this can only help your cause.HTHBookm
S&P 500 Index 100% It shall be then hehe as I cant get an answer from Cigna on all the fees they will charge on the other stuff I can only assume they are to high so much for lots of money in retirement on my meager income LOL. Thanks for your help
yet I read in other places that I am young and should go High RiskDouble-check what those areas mean by "High Risk."The sites I read that talk of young people being able to take on more risk usually are referring to 80% to 100% equities (e.g., stock funds), as contrasted against less risky portfolios of 40% to 60% equities. And the equities suggested by those sites are broadly diversified funds, such as a "core fund" of large cap blend (the S&P500 Index funds and the Russell 3000 Index funds fit this category) and some spicing of other funds if desired, or they talk of asset allocation among large caps (majority), mid-caps (sometimes), small caps, and international, as well as some bond exposure.Yet, a number of younger people read "more risk" to mean risky, such as sector plays or greatly overweighted in small caps. It's one thing to have time to recover from mistakes after taking prudent risks, it is another to go out of one's way to take imprudent risks.
Thank you I understand. I have only been playing around with this for about 2 years. But after My Companies 401(k) with Aetna did so abysmal the past year (ONLY people who did not lose money every 1/4 were thos in a Quarenteed Income account) Last 1/4 I put in around $1375 and lost $2160 Not a good option but I do not see funding my Golden years with a 3%-5% promised return, I am hopeing for 9.5%-13% avg returns. All mine was in Fidelity Growth, and Scudder International. Well now we get to Swap to Cigna and I know nothing about thier fees or anything, They sent us Lovely pacages with Charts showing Brilliant returns.(Why am I not impressed) So based on these I picked the Following Large Cap Value (John A. Levin & Co. Fund) 20%Large Cap Growth (Dresdner RCM Fund) 20%Waddell & Reed Advisors Accumulative Fund 10%Mid Cap Value (Wellington Mgmt. Fund) 5%Mid Cap Growth (Artisian Partners) 5%Small Cap Value (Berger Fund) 5%Small Cap Growth (Times Square) 5%International Blend (Bank of Ireland) 8%Global Value (Morgan Stanley Find) 8%Core Bond Fund 14%S&P 500 Index Fund 0%Guaranteed Income Fund 0%Then got to reading here and got the Idea I should only Invest in theS&P 500 Index Fund 100%They mention other types of investing but always go back to the index fund :-( so I am more confused than ever and only have about 3 weeks to decide where my Money goes.Frustrated <not as Foolish as I should be> Fool
If I'm reading the Guides here on the Fool correctly the ONLY thing I should put my money in is th S&P 500 Index Fund right?That's a slight misread, last time I read them, they recommended good, low cost, funds. Since most people don't take the time to read the prospectus, the annual report or the Statement of Additional Information, or aren't regular readers of Morningstar.com then the Fool recommends 100% index, it's pretty much idiot-proof.And yes, I know that the Fool recommends only no-load funds, even though there's good load funds out there. I only look for no-loads myself, because I'm not about to pay 5.75% for my own research. Of course, I'd only buy funds from a fee-only advisor, so I'd still only get no-loads (unless the advisor was really, really, good).The only thing that I know that I don't want is the Guaranteed Income Fund, that usually means money markets or similar boring investments with an almost non-existent yield currently.*If* the funds are good, and relatively low-cost, then I'd spread it out as much as possible, with some in small-caps and some mid- and most in large-caps, a bit of global and international for spice and some bonds for filler.The exact percentages, I can't tell you, that depends on risk tolerance, age, and such. But remember, many large-caps and some smaller companies are in the S&P 500 (although it's mostly large-cap), so if you're in the S&P you can probably safely ignore the large-cap value and large-cap growth funds. But I'd still recommend a mix of the other types of funds.
If I'm reading the Guides here on the Fool correctly the ONLY thing I should put my money in is th S&P 500 Index Fund right?A strict fool would say that you should only invest in Index Funds if you are going to invest in mutual funds. But they would also suggest diversification. There are a number of different indicies that you can invest in. The S&P 500 is the biggest and best known, but it is not the only one. Most Fools are big fans of Vanguard, but they have a fairly high minimum (1000-3000 DOLLARS PER FUND.) But they would be a good place to see what kinds of index funds are available. There are others amongst us who like actively managed funds, but recognize that Index Funds should constitute the core of your investing.
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