I am wondering how to invest my 401K. My company offers different options, what the best way to research?

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added 3 months ago

I am wondering how to invest my 401K. My company offers different options, what is the best way to research?

Answers

CUWu answered a question in Financial Analysis.
872 points

CUWu answered 2 months ago …

While I do keep separate trading accounts for individual stock positions, I only hold a couple of high performing, closed end mutual funds in my 401k (and an index fund). I figure it's better to keep the retirement many in a basket of steadily growing stocks and in the hands of competent managers. Usually I just match the market or do a little bit better...rarely do I perform worse.

If I'm in your shoes I'd start off with morningstar.com for my mutual fund research.

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Oldman answered a question in Financial Analysis.
2547 points

Oldman answered 2 months ago …

CuWu's advice is good. I'd like to add a couple of other sites:

http://firecalc.com/index.php

and

http://fundadvice.com

and

http://retireplan.about.com

And finally...put your , and your company's match into money market, and once in a while buy whatever is currently below its 3 or 5 yr trend. In most company plans you get divs and CGs reinvested, automatically, when the funds have done well...and that's buying in at an increasing NAV...which is idiotic.

Learn to do asset allocation...because the type of invetment (small vs large, domestic vs foreign, value vs growth, commodity vs REIT, etc) will have more of an effect on your performance than the kind f company you keep ... over the long-term.

The only problem I have with M* is their limited view of holdings and their weighting of past performance, but certainly for company comparisons, they have a decent ranking system.

For a schema of whether to put any funds in at the moment, sign up for the free weekly e-mail from Ulli, who uses a trend-following system and shows the max drawdowns for many 401K and 403b funds at his web site, each Friday, based upon Thursdays close:

http://www.successful-invstment.com/index.html

Good luck

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alanj answered a question in Financial Analysis.
732 points

alanj answered 2 months ago …

Oldman mis-spelled the last link in his answer . Here is the correct link
http://www.successful-investment.com/index.html

If one of those options are ETF's I would consider using ETF's instead of mutual funds. The management fees on a mutual fund is about triple that of an ETF of similar make up. There are other things that make an ETF a better choice.

Do a profile of what kind of investment you are looking for. Are you looking for safety or aggressive, long term or are you more of a short term trader, index or sector? Then research and find out which one of those options you are given that most closely comes to what you are looking for.

If you need further help with your options, tell us what they are.

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