Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Growth Fund of America as long term holding?
Old 10-29-2008, 01:04 PM   #1
Dryer sheet aficionado
 
Join Date: Jun 2005
Posts: 37
Growth Fund of America as long term holding?

What does everyone think about Growth Fund of America as a core/lone holding in a 401k? I pay no loads so the ER is decent at 0.65 especially given that the 500 index in the plan has as ER of 0.79 (Virtus). I plan on holding this fund alone as long as I am in the plan, unless better options are added. For background the plan also offers:
Keely Small Cap Value A
AIM Reit A
Thornberg International Value R3
Goldman Sachs Mid Cap Value A
Davis New York Venture R
Eaton Vance Large Cap Value R
Federated Kaufman R
Columbia Acorn A
Alliance Balanced A
AIM Global Equity A
Bond Fund of America R3
American Century Inflation-Adjusted Bond
John Hancock Strategic Income R
Wells Fargo Stable Value

Any advice is appreciated.

Thanks,

Dave
__________________

__________________
dougie790 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 Early-Retirement.org 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!

Old 10-29-2008, 10:45 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
It is a good longterm large cap growth holding to have. Since you own it in a 401K, there's not upfront load, so the ER is decent, at least in comparison to some of the other choices......

I saw the 401K has an R3 share for Bond Fund of America. That is a retirement class share that has higher ER. I would check to make sure you're not paying an upfront on GFA so you are not surprised.
__________________

__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
No Loads
Old 10-30-2008, 08:25 AM   #3
Dryer sheet aficionado
 
Join Date: Jun 2005
Posts: 37
No Loads

No, we do not pay any of the upfront loads in the plan. I looked at the bond fund of america, but the ER is just too high for a bond fund. Overall its a pretty crappy plan but the match is good so I am just sticking it all in GFA which has a good long term record, a good mix of domestic/international and some fixed income/cash. I hope it will continue its fine performance, allthough I know I am getting in towards the end of the line.

Thanks,

Dave
__________________
dougie790 is offline   Reply With Quote
Old 10-30-2008, 08:39 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Quote:
Originally Posted by dougie790 View Post
No, we do not pay any of the upfront loads in the plan. I looked at the bond fund of america, but the ER is just too high for a bond fund. Overall its a pretty crappy plan but the match is good so I am just sticking it all in GFA which has a good long term record, a good mix of domestic/international and some fixed income/cash. I hope it will continue its fine performance, allthough I know I am getting in towards the end of the line.

Thanks,

Dave
The reason Bond Fund of America has a high ER is they are using R3 shares, whose ER is like a C share would be, I don't know why they did that. Davis New York Venture and Columbia Acorn are also some decent choices in that plan. GFA is not a true large cap growth fund, it's an all-cap........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 10-30-2008, 09:00 AM   #5
Dryer sheet aficionado
 
Join Date: Jun 2005
Posts: 37
The thing I like about GFA is that it is all cap. Davis is a great fund but the R class has too high an ER for them to hold BRK, AIG, AXP, and others for the next thirty years. I can do that myself at much lower expense. Acorn looked ok but I really wanted something more of a value play.
__________________
dougie790 is offline   Reply With Quote
Chris Davis
Old 10-30-2008, 09:02 AM   #6
Dryer sheet aficionado
 
Join Date: Jun 2005
Posts: 37
Chris Davis

Chris Davis, while he is a great manager, is too much like his dad in that they love financial stocks a bit too much. I do not think this is a really good time to be caught in them, especially at the prices he probably paid for them.
__________________
dougie790 is offline   Reply With Quote
Old 10-30-2008, 10:35 AM   #7
Thinks s/he gets paid by the post
 
Join Date: Nov 2007
Posts: 1,052
The reason R3 shares are being used is because it's cheaper for the company.
NYVTX (New York Venture) is a great growth fund as well. I own quite a bit for myself. However, it looks like in the recent downturn, Growth Fund of America didn't suffer as badly. JMO
__________________
Art G is offline   Reply With Quote
GFA vs. 500 Index
Old 10-30-2008, 01:00 PM   #8
Dryer sheet aficionado
 
Join Date: Jun 2005
Posts: 37
GFA vs. 500 Index

Given that GFA has a lower ER (0.65 vs 0.79) than the index fund in my plan (Virtus Index Fund), is there any advantage to switching over to the index fund instead of GFA?
__________________
dougie790 is offline   Reply With Quote
Old 10-30-2008, 01:39 PM   #9
Thinks s/he gets paid by the post
 
Join Date: Nov 2007
Posts: 1,052
People on this board won't make fun of you.
__________________
Art G is offline   Reply With Quote
Old 10-30-2008, 01:43 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Quote:
Originally Posted by dougie790 View Post
Given that GFA has a lower ER (0.65 vs 0.79) than the index fund in my plan (Virtus Index Fund), is there any advantage to switching over to the index fund instead of GFA?
No...........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Art
Old 10-30-2008, 02:14 PM   #11
Dryer sheet aficionado
 
Join Date: Jun 2005
Posts: 37
Art

Art,
Why would anyone make fun of me? I know there is a bias towards Vanguard and there should be when it comes to mutual funds, but even Mr. Bogle has mentioned that American Funds is an outstanding fund company (well without the load). I think my money is in good hands but in times like these I think it is natural to explore all options available.
__________________
dougie790 is offline   Reply With Quote
Old 10-30-2008, 02:28 PM   #12
Thinks s/he gets paid by the post
 
Join Date: Nov 2007
Posts: 1,052
Sorry Dougie, inside joke. Many people around here seem to think an index fund is the only way to go. I'm behind your choice all the way. That's where a goodly portion of my retirement dollars are.
__________________

__________________
Art G is offline   Reply With Quote
Reply


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
Vanguard Long Term Tax Exempt Insured Fund lawman FIRE and Money 2 09-24-2008 04:16 PM
Vanguard US Growth Fund......... FinanceDude FIRE and Money 9 08-05-2008 11:26 PM
Are you still holding short-term bond? Spanky FIRE and Money 11 11-21-2005 08:11 PM
A growth fund........ roger FIRE and Money 2 04-24-2004 04:10 PM
Question for Ted on Long Term Fixed Income Holding Cut-Throat FIRE and Money 19 01-14-2004 07:54 AM

 

 
All times are GMT -6. The time now is 02:10 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.