Join Early Retirement Today
Thread Tools Search this Thread Display Modes
401k Investment Option
Old 09-21-2005, 10:05 AM   #1
Confused about dryer sheets
Join Date: Jul 2005
Posts: 3
401k Investment Option

My 401k plan (managed by Fidelity) offers a passively managed option that I am considering for the equity allocation (70% more or less) of my retirement funds. FWIW I am probably a year or 2 away from actually retiring.

The "fund" is described as a collective investment trust. The fund invests in Comerica Bank collective trusts advised by Munder Capital Mgmt. It is essentially a passively managed* index fund of all US and foreign companies traded as ADRs in the US with a market cap of $250 million based on market cap weighting. It has Avg Annual Total Returns (fees included) of 10.81 % since 1986. 1 yr 11.013 yr 11.07, 5yr -0.98, 10 yr 9.52
(Mar 2005 data)

Current composition of the fund is described as follows (editied somewhat):

63 % of the Fund's holdings are invested in US companies...
98% of all US stocks and REITS, similar to the Wilshire 5000.
Remaining 37% invested in companies incorporated outside US which are listed and traded as ADRs on US exchanges.
3500 total securities. Cover lg, med, sm stocks of US and 50 countries including some emerging markets...

My employer pays the management fees...brokerage fees and expenses are paid from fund assest and rolled into the price and returns.

This sounds pretty good to me as kind of a one size fits all, world stock market, low cost investment. Vanguard or similar combinations of low cost index funds are not available in my Company plan. This appears to me to achieve a similar result. My only worry is the amount of foreign exposure.

Is this a good retiree "one stop" stock portfolio choice? At the momnet I am spooked enough by both the stock and bond markets that I am in cash for the first time in 20 years. But I don't intend to stay there!



strap hanger is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!



Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
500 search phrases for 2006 dory36 Other topics 2 01-16-2007 07:00 AM
Roth 401k vs Traditional 401k keldon FIRE and Money 3 01-08-2007 12:25 PM
401K investment help Ibid Young Dreamers 9 09-02-2006 08:31 PM
Paying off Debt vs. 401(k) Contributions BigMoneyJim FIRE and Money 4 02-10-2003 10:06 AM


All times are GMT -6. The time now is 10:46 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.