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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VIDEO ON MSN MONEY

47Comments
Jan 3, 2014 12:36PM
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Why would you list funds that are closed to new investors, such as T Rowe Price New Horizons and T Rowe Price Mid Cap Growth?  How is that helpful to an investor looking for new opportunities?
Dec 17, 2013 3:20PM
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Only one of these funds is a true keeper, the T. Rowe Price New Horizons.  It is performing in the top 2% for its fund category over the last 5 and 10 years. 

 

The Vanguard 500 Index is a average performer at best over the past 10 years.  Only performing in the top 34% for its fund category.

 

The remaining funds look good over the 10 year period but have very average performance in recent years.  Looking to the future with these fund, I think you can do better. 

Jan 3, 2014 4:26AM
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As a rule of thumb. Any Mutual Fund recommended by the media is must likely an advertising campaign endorsed by someone with an interest stake or complete ignorance as to what really matters. For instance I see the bottom liners talk about % but that is not what you get in the end. Mutual Funds remember... Please take into consideration a few things. Costs and Taxes. As well as the fact you can reduce the costs and eliminate the taxes if you know what you are doing or someone who knows.
Jan 3, 2014 11:55AM
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As one of those nasty government workers I can tell you there is no giant pension. I am matched 5% of my pay but only if I put 5% in. This is all an investment. We have to choose from the 5 options of where/how we want to invest. The days of an actual pension is over for the average government employee. Only our fine representatives in Washington have fat pensions. Or free insurance for that matter. I'm aware that I might have a better opportunity to build a retirement than some private sector people but only if I am wise about how I invest. The same as everyone else.
Jan 3, 2014 8:27AM
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No big whoop here. pretty silly stuff really....what if your company offers all or two/three/or 4 of them? If you look at the top 25 holdings in say the S&P 500 index and then the say the Fidelty Contrafund  for instance you are going to find many of the same stocks. There goes you diversification. The chances of one company offering all of these funds is just about Nil....anyway.  But you definitely need all of them in order to get broad exposure to the markets.

Here is a little for instance....he mentions, goog, msft, ge, appl as holdings in a couple of the funds. Well, if someone happens to pick those two funds...you are f'ed when the word deversifiication comes up. So many time I talk to people who say..."I'm fullly diversified, I own 5/6/7 or 8 mutual funds." And many times, more often than not really, several of the top 20 holdings in two or more funds will include several of the SAME stocks. Not only that, but additionally, if they are holding many of the same stocks in the top 20 list, that SHOULD tell you that if one tanks so will the other(s) holding the same issues or issues in the same sector.

Jan 3, 2014 12:58PM
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Netflix - The same company they said would not survive - is now on the recommended list.  Just goes to show how much they really know.
Jan 3, 2014 11:14AM
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I have money in vanguards small cap and mid caps. both have performed well. 30% range.
Dec 17, 2013 2:28PM
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Buying a fund now ? Well you have to start sometime I guess- and I hope that you're looking at a long term strategy when assessing these. A semi-annual review of them is also prudent to stay on track with your own goals & risk.

 

This is just one 'tool in the toolbox'; combine them with other investments for a well diversified portfolio. Hard assets such as real estate, whether residential or commercial, are wonderful cash flow vehicles. You'd be wise to invest in these in your own community, helping to build a strong business community that doesn't necessarily rely on market fluctuations.

Jan 3, 2014 1:09PM
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Fidelity?  They took a few hundred thousand dollars of my retirement and siphoned off almost all my savings in fees and in-house "investments" where the brokerage gets big commissions to invest in failing companies, leaving the fund holders poorer while they get richer.

A pox upon all brokers, bankers and the lawyers who serve them!

Jan 10, 2014 10:07PM
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History is NOT a promise or even a possibility of future gains, especially when fund is closed. Do real professionals write these ??
Jan 3, 2014 10:12AM
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Interesting article for MSN. I would have thought they would have been pushing for everyone to get a government job, and subsequent government pension, or get on the dole. I must admit, having a left leaning "news" organization push 401k's is little laughable.
Jan 13, 2014 1:48PM
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Usually the funds that are close to many investors can be accessed through specialized ways of entry....check with your broker. If they can't get there check with another firm.....there are ways and they may cost you a little extra.
Jan 3, 2014 1:17PM
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Best investment in America in 2014: 

Colorado - Tourism.
North Dakota - Disaster Recovery
Large cities near the ocean - Disaster Supplies
Large cities away from the ocean - Real Estate
Utah - Gay-Friendly Wedding Planner, Florists


Dec 17, 2013 1:19PM
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I just bought another rental house. 20% down. Over a 20% ROI after expenses. It's not as passive as a mutual fund, but the returns are phenomenal.
Dec 17, 2013 11:47AM
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It  has become obvious that Tapering is a fraud manipulated by Wall Street to rip off 401ks etc
Jan 3, 2014 1:37PM
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So, are still pretending that 401-Ks are a great way to save for your retirement?  If so, you haven't been paying attention.
Jan 13, 2014 8:57AM
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It's amazing how many industry trolls still come to these pages trying to influence the conversation with a simple thumbs down. A few of them respond with a lie or two.

 

Just like FOX channel bloggers who have up to 100 profiles to use so they can dispute every one calling them out for their lies!

 

 

Dec 17, 2013 3:05PM
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  The Bernie Madoff aggressive Mad Money Index Fund did not seem to make the top ten, for the ones that had this fund in the past, Auf Wiedersehen and don't let the door hit you in the Phallus like so many experienced.
Dec 17, 2013 12:42PM
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We were able to finish up yesterday, not 174 but we take the 129....This morning is a different story, as you may imagine manipulators came out swinging; at 1050 hrs they called to accelerate the selling so down we go....Long way to go....Be cautious, they will try to bring us down big before tomorrow's Fed notes....And again, remember, its not what the Fed says, its how these crooks interpret what he says....Hang in there...More later.
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