Comments on: Review Your 401(k) Fund Fees http://www.myretirementblog.com/review-your-401k-fund-fees.html Retire happy, healthy and wise. Tue, 07 Feb 2012 11:13:49 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Mike http://www.myretirementblog.com/review-your-401k-fund-fees.html/comment-page-1#comment-68735 Mike Fri, 02 Sep 2011 14:20:59 +0000 http://www.myretirementblog.com/?p=557#comment-68735 The writer of this article has made a huge mistake. Just because you have 500 stocks in the S&P 500 does not mean you have diversity. Those 500 stocks are all from one asset class ~ large cap. By adding in the proper mix of other asset classes you can actually increase your return while reducing your risk. Although I agree that you want to be aware of fees, and minimize them as much as possible, I would not invest in only 2 funds because it was cheaper or easier. That is foolish. You will give up much more in return and have a great deal more volatility in your portfolio because you will lack many other asset categories. Asset classes such as small cap, small cap value, international (both large and small), emerging markets, and many others are an important part of the diversity equation. Being lazy is a great way to lose money and add a great deal of risk to your portfolio! The writer of this article has made a huge mistake. Just because you have 500 stocks in the S&P 500 does not mean you have diversity. Those 500 stocks are all from one asset class ~ large cap. By adding in the proper mix of other asset classes you can actually increase your return while reducing your risk.

Although I agree that you want to be aware of fees, and minimize them as much as possible, I would not invest in only 2 funds because it was cheaper or easier. That is foolish. You will give up much more in return and have a great deal more volatility in your portfolio because you will lack many other asset categories. Asset classes such as small cap, small cap value, international (both large and small), emerging markets, and many others are an important part of the diversity equation.

Being lazy is a great way to lose money and add a great deal of risk to your portfolio!

]]> By: retirehappy http://www.myretirementblog.com/review-your-401k-fund-fees.html/comment-page-1#comment-68242 retirehappy Fri, 17 Apr 2009 12:26:56 +0000 http://www.myretirementblog.com/?p=557#comment-68242 An index isn't automatically diverse, it's more diverse than a handful of funds but not necessarily diverse. The Dow has more blue chips, the Nasdaq has more tech, etc. An index isn’t automatically diverse, it’s more diverse than a handful of funds but not necessarily diverse. The Dow has more blue chips, the Nasdaq has more tech, etc.

]]> By: fern http://www.myretirementblog.com/review-your-401k-fund-fees.html/comment-page-1#comment-68241 fern Fri, 10 Apr 2009 16:46:18 +0000 http://www.myretirementblog.com/?p=557#comment-68241 as a fellow TRP investor, i recently did some consolidating of my own, consolidating 2 TRP small cap IRA funds into a Vanguard small cap index fund. I also took a portion of my TRP bond index fund and put it into a Vanguard TIPS fund. I also decided to move 2 401k funds into index funds as well. My ultimate goal is to have all my money in index funds. Not all quite done it yet. as a fellow TRP investor, i recently did some consolidating of my own, consolidating 2 TRP small cap IRA funds into a Vanguard small cap index fund. I also took a portion of my TRP bond index fund and put it into a Vanguard TIPS fund.

I also decided to move 2 401k funds into index funds as well.

My ultimate goal is to have all my money in index funds. Not all quite done it yet.

]]> By: Lev http://www.myretirementblog.com/review-your-401k-fund-fees.html/comment-page-1#comment-68240 Lev Fri, 10 Apr 2009 15:52:23 +0000 http://www.myretirementblog.com/?p=557#comment-68240 > It?s not as diverse Why? What can be more diverse than an index fund? Lev > It?s not as diverse

Why? What can be more diverse than an index fund?

Lev

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