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Subject:  Re: choose funds for 401k - help needed Date:  12/5/2005  12:52 AM
Author:  CABob Number:  13548 of 18062

You have a number of good funds and fund families to consider. I have a personal preference for Vanguard funds and I am a proponent of index funds so my recommendation is perhaps biased.
Since I assume this is a decision that will have to be made soon I would suggest you put 100% into the Vanguard Target Retirement 2045 fund. This can be changed later since changes in a 401k plan can be done at low cost without tax impact. This fund of funds provides exposure to stocks, both US and foreign as well as a bond allocation. This gets you started with your 401k and then you can take more time to develop a more comprehensive investment plan through some self education. Steps in doing your planning would include determining your basic asset allocation plan which would state your desired stock vs. bond allocations based on your age, risk tolerance, and personal considerations.
Then you should determine whether you want to use index funds or actively managed funds or perhaps a combination of the two. You should consider whether you want to keep the plan simple with a minimum number of funds or would like to have a fairly complex plan with a larger number of funds.
You may later decide to stay with the Target Retirement fund. I would not think this is a poor choice, but many choose to invest in additional fund to be able to maintain better control of their asset allocation.


Bob

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