Help me with 401K & election options.

OK, so I have a 401k that I have dedicated 25% of my income in. I only just learned from my old employer that my old 401k was being invested in the market and that is, like, kind of a requirement. My feelings on that are strong about that shit but that is not the point of the thread.

Well, it looks like I have to have an active role in my retirement fund and there is the matter of ellections.

I have the following options to chose from. With my old employer, I was using Vanguard, and they suck balls. I had less in my old 401k than what I contributed. I am interested in making money but one cent lost will cause me undue anguish. I would rather it just sit in my account like my credit union IRA. But we can't all have what we want so I *sigh*.

American Funds Cap Income BuilderR3 (RIRCX)
American Funds EuroPacific GrowthR3 (RERCX)
BlackRock Eqty Dividend A (MDDVX)
BlackRock Global Allocation Fund A (MDLOX)
BlackRock Long-Horizon Equity Fund A (MDEGX)
BlackRock Mid Cap Val Opp A (MDRFX)
BlackRock S&P 500 Index Instl (MASRX)
BlackRock Small Cap Growth Fund II A (MDSWX)
BlackRock Value Opportunities Fund A (MDSPX)
Calamos Growth Fund A (CVGRX)
Davis New York Venture Fund A (NYVTX)
Eagle Small Cap Growth Fund A (HRSCX)
Eaton Vance Atlanta Cap SMID-Cap Fund A (EAASX) B
Federated International Leaders A (FGFAX)
First Eagle Global Fund A (SGENX) R
First Eagle U.S. Value Fund A (FEVAX)
Franklin Growth Series Fund A (FKGRX)
Franklin High Income Fund A (FHAIX)
Goldman Sachs Government Income Fund A (GSGOX)
Ivy Global Natural Resources Y (IGNYX
LifePath Active 2015 Portfolios A (BAPBX)
LifePath Active 2020 Portfolios A (BAPCX)
LifePath Active 2025 Portfolios A (BAPDX)
LifePath Active 2030 Portfolios A (BAPEX)
LifePath Active 2035 Portfolios A (BAPGX)
LifePath Active 2040 Portfolios A (BAPHX)
LifePath Active 2045 Portfolios A (BAPJX)
LifePath Active 2050 Portfolios A (BAPKX)
Lord Abbett Fundamental Equity A (LDFVX)
MFS Growth Allocation Fund A (MAGWX) B
Oppenheimer Developing Markets Fund A (ODMAX)
PIMCO Total Return Fund A (PTTAX)
Ready Assets(7dayYield:0.00%) (MRAXX)
Thornburg International Value Fund R4 (THVRX)
Victory Diversified Stock Fund A (SRVEX)

B - Denotes fund has established blocking criteria. Blocking prevents you from making specific transactions and is designed to discourage frequent trading. Blocking is determined by each fund family. Click on the "B" indicator for details.

R - Denotes fund has established redemption fee criteria. Redemption fees are charged by a fund when shareholders redeem shares or transfer assets between funds within a specific timeframe (or holding period). These fees are imposed by Fund Families to discourage frequent trading and are generally used to defray costs associated with redemptions.
--- merged: Dec 18, 2012 at 11:29 PM ---
According to smart money they say I should divide my assets as thus:

Cash 20%
Bonds 19%
Small Caps 16%
Large Caps 30%
International Socks 15%

From the ellection options above, I have no idea which is which. I am reading the details to them one by one right now.

 

Vanguard doesn't suck balls any more or less than other investment companies.
If your investment choices lost money that's not Vanguard's fault.
If you really will go batshit over losing a cent then go with the govt. income fund.
I happen to like the PIMCO total return.
Honestly, you probably need to meet with an adviser. Your company probably has a retirement fund advisor.

 

They don't.

As far as going through the election choices one by one, man, that's tedious. I've only crossed out 3 and the ones that I've gone through I have no idea what they do. I'll probably just stay away from the ones that I don't understand.

 

Find an advisor, but make sure it's someone you're comfortable with. I actually deal often with a guy at my bank... he's free, but he's now more in tune with the market than I am. I don't always take his advice, and he pushes his banks funds, but will listen to me when I say I want something else. Even professional (for-hire) advisors have their own prejudices about funds, or deals with fund groups for business sent their way. If they are ethical, they'll tell you about that (saying they represent those groups). It might cost you a little for the advice, but comfort and trust are key.

Remember these are RETIREMENT savings. You don't need immediate, spectacular growth. Buying continuously, regularly will help you overcome dips in the market. If you buy 30 shares @ $10 one month, 15 shares @ $20 the next month, and 20 shares @ $15 the next month, all of the same fund, you've spent $900, and have $975. Yet if you look at the last 2 months, you would figure you've lost money, which is what far too many people do. Retirement is LONG-TERM planning (at least for most). Get the money out there where it's working for you; if necessary pay a professional for some advice; and if the idea of variations in value scare/upset you, DON'T look at it very often, and then only at the total value.

 

As you should snowy But as soon as you begin your career, start savings for your retirement in earnest. I have no doubt that you will.

I fear for the younger TFP members (which is most of the membership) that the rules for retirement preparation will be different than today. But many will find out too late. For starters, I have to believe we will all eventually pay more taxes than now. That will effect my generation as well. That will have a major impact on how much you will need for retirement. Your generation will also have to deal with the crap that my generation is leaving behind; a massive deficit, Medicare issues and the like. We have kicked the can down the road for far too long for it not to have some effect on the future. I don't believe anyone should count on the government's ability to take care of them at retirement. It will take self control to remember to save first to the extent of diminishing discretionary spending.

 

1. Why do you think this? Any data to support it?

Do not get into anything you wouldn't keep for 10 years

1. See what that would have done for you if you followed that advice in 2000: Buy-and-Forget Portfolio: 10 Stocks To Last The Decade | The Big Picture

Because, this is how it truly grows...it doesn't happen overnight, you're going to be waiting for a bit.

When and if you get a gain, don't touch the principle,

1. Actually taking gains off the table is a great thing to do. Sell some to make the position fit the desired percentage of your portfolio.

Reinvest a portion of your profit into another ....and so on.
It's just like the title of Warren B's bio, "The Snowball"...it slowly accumulates. (401K or yourself)

Me, I'm hoping now that things are different in my life, I'll finally be able to get that starting investment myself. We'll see.
I've got to make some magic happen.
But magic takes effort and thought, ask any magician. [/quote]

 

The "pros" running mutual funds often times aren't very pro at all. They can be expensive and often times have trouble meeting their benchmarks.
Why not use ETF's?

And you may think that list from 2000 were terrible but those were the chosen stocks from Fortune Magazine. In retrospect, yes, terrible, but not an unreasonable list for the time.
If you really want to buy and hold individual stocks you have to put in a lot of work. Listen to quarterly calls, read the annual reports etc. And be ready to move on at any point.

 

UPDATE: I picked at RANDOM! HA! And made $20.00 in the process.

BlackRock Global Allocation Fund A (MDLOX) 50%
BlackRock S&P 500 Index Instl (MASRX) 20%
Davis New York Venture Fund A (NYVTX) 10%
Eaton Vance Atlanta Cap SMID-Cap Fund A (EAASX) 5%
Goldman Sachs Government Income Fund A (GSGOX) 5%
Oppenheimer Developing Markets Fund A (ODMAX) 10%

As it turns out, because I had forgotten and just let the enrollment progress in limbo, they never actually did anything with the funds in the 401k. After which I joined mint.com and I needed to actually select election options to see any kind of progress and after doing so, one week later, my funds have grown ! I can't believe it! No one makes $20 within a week. It must have been a very good week for the stock market or dumb luck in my elections! Or rather a $20 signing up bonus. Most likely the bonus.

I have an appointment with a Merrill Lynch advisor Monday.

New Discussion question: Any one have any testimonials with investment firms like Fidelity, Folio, Merril Lynch, Goldman Sachs etc etc etc?

 

Don't worry about weekly/monthly gains, your quarterly statements should be when you sit down, look at 3 and 12 month returns, and decide whether to keep money where it is or move it around. Those funds look solid for the most part, given just the ones you chose I probably would have put 10% each in EAASX and GSGOX and ditched ODMAX, but I only see your portfolio growing long term. Random isn't a bad idea, I chose where to put 80% of my portfolio while extremely drunk, put high-risk funds in brackets, chose winners in each round by flipping a coin, and put 10% in the winner and 5% in the runner up, then asked my brother (who was also drunk) to pick where the last 5% went. My 12-month return has only dropped below 10% for one quarter.

 

http://finance.fortune.cnn.com/2013/01/24/buffett-hedge-fund-bet/

I put 80% of my retirement savings into S&P 500 Index Fund, 20% into a Bond fund. As I age it'll steadily grow towards higher percentage Bond. Final 5 years of work plan to shift everything into Bond for safety reasons.

The link shows how Buffett made a famous bet that after 10 years, an index fund will outperform any mutual fund with the idea that the lower cost of % fees would outpace even the best investors. After 5 years he pulled ahead and hasn't shown signs of slowing down.

 

1. Not prying but how much money are you bringing? Under $250K I doubt they are interested.
2. What are you hoping to have them do for you?

 

Nope. As long as you make 1¢ the greedy bastards want it. I am still earning just under 30k annually. I forgot to mention in the earlier post that legally you can only contribute a max of 17% of untaxed dues to your 401k. I supplement the other 8% from my paycheck which is usually taxed.

That 8% I need it to grow as fast as possible to 20k so I can buy a house as soon as I can. Ofcourse that will take some time. I do not have unrealistic expectations thinking that it will happen tomorrow.