Mid Cap Growth Funds
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Ricky Said:
Which is the best investment option my 401K offers?We Answered:
I bet you must work for Lowes. Put a portion into Lowes for sure. Maybe 15-25%. There are two reasons to do so. 1. Shows management you are an investor in Lowes. 2. It is a good investment.The Vanguard Life Strategy Growth Fund is not a bad choice. It would not however be my 1st choice but not my last either. Maybe 25%.
Fidelity Equity-Income is a somewhat mediocre fund (not too bad and not too good) but reasonably sound with large cap holdings that pay dividends. You could do worse. Maybe 25%.
The T. Rowe Price Mid-Cap Growth fund is the best of the lot in my opinion. It is also closed to new investors. You are fortunate that you are able to invest in it as an option. 25%. It however will also be the most likely among the options to possibly suffer a significant loss in a bear market. If that prospect does not appeal to you, perhaps you should avoid it.
American Funds is a premier mutual fund company but does charge a significant sales charge on their class A shares. I do not know about the class R5. This fund is your only option for non-US investments. So despite the sales charge, it should be included in your portfolio to provide you with appropriate geographic diversity. Its holdings are solid large cap companies that are world class. 25%.
One of your responders suggested not putting more than 10% in any one investment. Generally, that is good advice for individual stocks, especially when considering an investment in Lowes stock. It does not apply to mutual funds to such an extent because by their nature of diverse investments. In your particular case a 25% contritubion to Lowes although it does not follow this guideline, would be appropriate because of the possible contribution to your career.
I am not particularly please with the selections you are being provided. Each of the companies that I mentioned above have significantly better offerings for 401k accounts. In particular for example the Vanguard Global Equity Fund would be a fine choice for any 401k account. I do not know how a company selects the funds to offer their employees. I sometimes believe that they are perhaps offered kickbacks to offer certain funds.
Maybe you should suggest to your management that the Vanguard Global Equity Fund would be a much better offering than most of the funds they are currently offering. If they should decide to do so in the future consider swithch the Euro-Pacific portion to that fund.
Debra Said:
Are these good investment elections for my 401(k)?We Answered:
Having no Pimco & no Gartmore are the keys at your age. With market high allocation is ok as is.Jennie Said:
What percentage should I invest in the following retirement funds for my 401k?We Answered:
Not sure what your goals are but if you're young like me then I'd go aggressive since you're not looking at preserving capital and could withstand the ups and downs over the long term. I'd go 25% in each.Vanguard Inst. Indx
Fidelity Sm Co
EuroPac Gwth
Wellington Midcap
You'll be almost completely into stocks but diversified on the companies. Large cap, mid cap and small cap....and it's always nice to have one international. Income and balanced funds and stable values have low rates of returns but preserve capital. Those are geared for near retirees. Keep in mind that inflation grows at about 4% a year so if your average rate of return is 4% or lower you're losing money because the interest does not make up for the cost of living and you still pay taxes on the earnings.
Janice Said:
Help me allocate my 401(k)?We Answered:
Your proposed allocation is what I would consider to be reasonable. You are still young (lucky devil). You should diversify just a little more broadly overseas in my opinion. I would suggest reducing the S&P 500 portion to 35%. The main problem is that you are way overweighted towards U S companies. When the rest of the world is where the economic growth is. Too bad none of your choices are foreign developing markets. I would like you to consider foreign small cap for about maybe 5-10% and some in mid cap growth. Growth funds are currently outperforming the rest of the market. They have lagged for several years.Derrick Said:
Value Line Rated top ten funds by market cap.?We Answered:
Go to your local public library.Jamie Said:
Which investment elections should I choose for my 401k?We Answered:
No stable value at all. No cash either. I own the Laudus - ok.Laudus 25%
Calamos 25%
Vanguard 25% low cost key
Victory 25%
May be a bit conservative but market high right now. Key is to look to long term.