American Funds Retirement
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Mildred Said:
What do you know about target date retirement funds (403b)?We Answered:
Target date retirement funds (also called lifecycle funds) are the financial world's equivalent of point-and-shoot cameras. They are very simple to use. All you do is choose a fund with a target date close to the year in which you plan to retire, and send in your money. The fund managers will invest your money in a diversified portfolio. Then, as you grow older, the fund's investment allocation will be gradually shifted to more conservative investments (like bonds) in order to lock in some of your investment gains. It's important to start locking in gains as you grow older, to provide a foundation for your retirement. Target date funds are good for people who don't want to spend a lot of time and effort choosing investments. A fund with a 2020 target date would be appropriate if you plan to retire some time around 2020, give or take a few years.Rhonda Said:
American funds 401k plan, where to place my percentage of investments?We Answered:
Just a general opinion...the international markets have been outperforming the U.S. for awhile and it should continue...so be sure to get a nice portion of your money into the Euro Pacific growth...maybe even 40% for awhile... then split 30/30 into some " caution"...the Am balanced...and the 2050 target ( I KNOW that's the least cautious of the targets, but they are conservative by design, so even that long-range fund will be fairly safe.)Once you're in ...keep an eye on your returns..on-line if possible or at least when they send you a quarterly report...don't expect windfalls, and don't panic with some losses ...but after 9 months or a year... maybe move your percentages around.
Jessie Said:
What are some good "American Funds" to invest into a ROTH IRAs for a couple who has 25+ years until retirementWe Answered:
I am partially in agreement with what the 1st responder stated about fund load at American Funds. But in the case of American Funds that load is counter balanced by their very good track record and their very low expense ratios, much lower than many no load funds. So lets get down to brass tacks. What are some good ones? The only way we can judge is based on past performance and based on risk. Future performance may not equal past performance so there is some risk that the criteria may be invalid. The same applies to risk.You do want to have a diversified portfolio. One option to consider is the Target Date 2035 retirement account. The coposition of that account will change as you approach retirement. It consists of a collection now of 16 different funds mostly growth funds 40% and growth and income funds 45%. As you approach retirement the composition will change toward equity income and bond funds so that it will approach more of a 50-50 mix.
The funds that I like in particular are the Income fund of America. It is a steady if not spectacular performer. Also the Capital Income Builder. The New World Fund is particularly doing well currently. This has considerable risk but the historical rewards have been excellent. The Capital World Growth and Income has somewhat less risk but is also an excellent performer.
It is my predilection that the majority of retirement money should be invested in funds like the Income fund and the Capital Income Builder, but that a portion of up to 30% should be invested funds like the Capital World Growth and New World Fund.
There is considerable speculation that the U S's time in the sun is rapidly approaching twilight as the sun move east and that the smart money will also move with the sun. American Funds does not have much exposure if any to this trend currently. The New World Fund does have 6% of its assets invested in India but only 1.8% invested in China. Actually their largest reported holdings are in Brazil 7.5%
Wesley Said:
Target Date Retirement Funds Expenses.....?We Answered:
Why not go to Vanguard and get a fund with a 0.2% expense ratio and no load? You can also look at Fidelity.Audrey Said:
Do American President enjoy lifelong retirement funds after his term?We Answered:
More than our veterans get.But those who work the hardest and give there life gets less to nothing, that is what America is about,the rich man gets richer.Adrian Said:
is selling american funds to buy chase strategic portfolio a good idea?We Answered:
No, chase strategic portfolio is new and has no performance history at all. The risk is too high. American Funds portfolio counselors who have more than 80 years of combined investing experience.