I just signed up for my company’s 401k program and the agent adviced me to go ahead and set-up a guided portfolio service that would be done by morningstar. The fee is .60%, is this worth it? I get a 10 day trial and after which I could cancel it and do it on my own. The services state it will do the following: Wealth forecasting, asset allocation, investment selection and asset management. Thanks!
okay, I’m 33 years old and here is the list of fund:
AIM small cap growth fund
AllianceBernstein International Value fund
American Century Gov. Money Market fund
American Century Inflation Adj. Bond
American century ultra
American Beacon small cap
Calvert Social investment equity
DWS Health care
Dreyfus midcap index
dreyfus small cap stock index
JP morgan capital growth
janus adviser forty
Janus growth and income
Oppenheimer capital appreciation
pioneer equity income
putnam global equity
sunamerica focused balanced strategy portfolio
sunamerica focused equity strategy portfolio
TRowe price science and tech
vanguard 500 index
vanguard total bond market index
wells fargo advantage govt. securities
There you go. Should I go for aggressive or moderate? thanks!
I’ve been doing my own for 25 years, now. One thing you DON’T do with a 401K is day-trade. Your 401k investments are very long-term. For my portfolio, sometimes it is a couple of years between changes in investments. For example, I moved stock funds to bond funds right after the hi-tech stock bust around 2000 (way before the Dow hit it’s low in the 7000s, and when that all settled out 2 years later, I moved back to stock funds.
Just get some high growth funds with good long-term track records and you should be fine. If you can maintain 10-13% over the long haul you are doing great. A money manager might be able to get you another 1% on top of that, but if it cost’s you 0.6% is it really worth the extra 0.4%?