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Conference nyoss1::market_investing

Title:Market Investing
Moderator:2155::michaud
Created:Thu Jan 23 1992
Last Modified:Thu Jun 05 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:1060
Total number of notes:10477

965.0. "Comments on this 401k plan" by MNATUR::LISTON () Fri Jan 12 1996 13:20

    The company my wife works for is establishing a 401K plan for them.  
    They will match contributions dollar for dollar up to 3% of the 
    employees salary.  The plan is outsourced to a third party who is
    providing the following choices for investing:

	o  contributions of 1% to 15% of salary

	o  8 selections -
							 Type
							------
	   *  State Street Bank Govt. Money Market	Income
	   *  State Street Bank Yield Plus		Income
	   *  State Street Bank S&P 500 Index		Equity Index
	   *  State Street Bank Agressive Equity	Large Cap Growty
	   *  Fidelity Advisor Growth Opportunities	LT Cap Growth
	   *  Fidelity Advisor Overseas			LT Cap Growth (Intl)
	   *  The George Putnam Fund of Boston		Bal Growth & Income
	   *  Putnam OTC Emerging Growth		Small Cap Growth

	o  contribution rates and allocations can be changed on a quarterly
	   basis (like our old 401K plan)


    I'm looking for feedback on the selections being provided.  The 
    administrators gave them a presentation yesterday and have stated that
    selections must be submitted by next Tuesday so I'm short on time for
    any detailed research.

    The first 4 are provided and managed by a local Boston bank, and are not
    tracked via the local papers.  My wife is in her mid 30's so the funds
    will be invested for quite some time.  

    Thanks,
    Kevin
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965.1Can't loseWMODEV::GERARDI_BAmerica's PSGFri Jan 12 1996 13:3617
    So,
    
    At best, you have an 100% match, at worst you have 16.666% match.
    I don't think you can lose here.  Personally, I would stay with
    the more aggressive funds, due to the fact that you have the
    cushion of the company's input.  As to looking for funds that
    are tracked in the paper, if that's important, go for it.  One
    of the most important factors in investing is the sleep factor.
    If you want to know how you are doing at any moment, of which I
    am one, then stick with the funds that are reported.
    
    
    good luck,
    
    
    Bart
    
965.2try Morningstar reportsTLE::RICEFri Jan 12 1996 14:3721
    If you can find a copy of Morningstar Mutual Fund report,
    you can accomplish a quick review of these funds in short
    order. Check Morningstar's ratings, and the 3/5 yr yields.
    The report is one condensed page on each fund, so a quick
    review can be done quickly.
    
    I think you're in MK. If so, Amherst library has the MS reports.
    Probably many other local libraries carry it.
    
    I think at least some of the Putnum funds have good track records, 
    although I don't know about these two. I've never followed the Fidelity 
    Advisor group, or State St.
    
    After checking the MS report for the funds, you may have eliminated
    one or more. Then with the remaining you can distribute the
    contributions over a few different fund types. Over time, as
    you read more about the specific funds, you can always make
    adjustments. Picking the perfect fund isn't as important as
    getting the savings started.
    
    -Chip
965.3KAHALA::CODYFri Jan 12 1996 14:394
    If you have an AOL account you can get the Mornignstar ratings from
    there.
    
    Pj
965.4SOLVIT::CHENFri Jan 12 1996 15:595
    I am not familiar with all these funds. But, some of them are certainly
    loaded funds. Did the companies waive the loads for her company? This
    may be another factor for you to consider.
    
    Mike
965.5PADC::KOLLINGKarenFri Jan 12 1996 17:023
    Aren't they required to give you prospectuses for these
    funds?
    
965.6PADC::KOLLINGKarenFri Jan 12 1996 17:473
    http://www.ai.mit.edu/stocks/mf.html has graphs for the last four
    funds (for the George Putnam fund look under Putnam).
    
965.7More infoMNATUR::LISTONFri Jan 12 1996 18:4011
    RE: .4 (fund loads)

    Yes, the loads have been waived

    RE: .5 (prospectus)

    They provided here with prospectus for the Putnum and Fidelity funds, 
    but nothing for the State Street funds.  I asked where the State Street
    info was and my wife indicated that they were not given any.