The best mutual funds for your 401k

If your company-sponsored retirement plan offers one of these great long-term funds -- some of which are otherwise closed to new investors -- take advantage of it.

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Dec 21, 2013 8:24AM

The best mutual funds for your 401K?  These are some good ones but everyone should do their own homework.  And look looooong term and not the new best thing.  If your plan offers the Oakmark Funds you will be in very, very good hands.  Last year voted the best fund family for 10 year returns.  DFA (Dimensional) is another "best" for a fund family and not mentioned here.  Do not overlook if available.  One last one for the long term is Sequoia (SEQUX).  This would be a #1 pick for part of any portfolio.  Chart it compared to Contra since 1970.  Contra is a great fund but it's no Sequoia.

Of the 5 listed I own only Vanguard, sure and steady and that is what it is all about.    

Dec 21, 2013 9:57AM

If you're plan offers you a brokerage account within your 401 k plan, that's the way to shed the mutual funds. No more fees, which in the long run will save you thousands. NOBODY will manage your money better than yourself. DIVERSIFY into many sectors, and preferably quality companies that pay out dividends. Reinvest those dividends every payout period into more shares of the company you are investing in. Let those shares compound over time, and watch your 401 k climb over time.

  Usually you have a one time trade fee when you buy shares and sell, whether you buy a few shares, or a thousand shares. The fees usually range between $5-10 a trade. Better than dishing out fees to the mutual funds to manage your money. The SEC has tried to get the mutual fund companies to disclose how much they are gauging you for, but it is still not in plain black and white. The mutual fund companies are getting rich off  the average worker. In a bad market, they still make money off of you, whether your fund is making money or not.

 I ditched the mutual in my 401 k plan, and I actively manage my own account. now. Sure it takes some due diligence, but after seeing my 401 k lose half in 2008, I decided I can do just as well. Like I said before, NOBODY will manage your own money better than you will.  Most peoples excuse is I don't understand stocks or the markets. Well, quit playing around, and teach yourself. It's your future that's at stake. Mutual funds are a basket of stocks, so just buy stocks in companies you understand, preferably ones that pay nice dividends, and either reinvest into more shares, or use that money from the dividends, into buying a different companies stock. The power of compounding over time will propel your 401 k, and you will save $$$ over time from not paying the mutual fund fees.

  Now if only the SEC would get the mutual fund companies to truly disclose how much you are paying them every year. Then there would be a lot less mutual fund companies to chose from, as lots more people will start to actively manage their own accounts. It's not rocket science. Of course the mutual fund companies want you to think like it is, as they only care about taking your money in fees.

Dec 21, 2013 3:48PM
There are great funds in most MF groups both load and no-load family funds.....just depends on your situation and how much money you have to invest. If you need help deciding then pay a reputable fund manager a one time fee for advice. 
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