MUTUAL FUND "KEYWORDS"
Anyone who has even a casual acquaintance with searching the Internet knows about keywords. Those are the words you type into a search engine like Yahoo! or Google so that you can find whatever information you are looking for. Type in the correct keywords and the information you need is usually right there.
Lately I’ve received a lot of e-mail asking me how best to follow the Successful Investing plan recommendations in a 401k or 403b retirement account. Most likely in these limited-choice plans, you won’t have access to my preferred investment options, exchange traded funds (ETFs). You will probably have access to only a few diversified domestic and international stock funds, and maybe if you’re really fortunate a few sector funds and some company stock.
Here’s a representative question I received just the other day from one of my subscribers; "Doug, how do I know which mutual funds to choose from? My 401k plan has several options, but none of the funds you’re recommending are available to me? How do I know which funds fit best with your plan?"
Well, the answer to this question and similar questions about how to choose the right mutual fund in your 401k or 403b is just as easy as searching the Internet. All you have to do is know your mutual fund "keywords."
Let’s go over what kind of keywords you are likely to find in a typical 401k or 403b. If you were to look at your 401k options, I’m sure most of you have a selection of stock funds with something like the following descriptions: "large cap," "small cap," "mid cap" and "international."
Within the description of each of the mutual funds, there will likely be keywords such as "growth" and "value." These keywords describe the type of companies and the investment style that the managers of these mutual funds use to direct their stock selections.
In most 401ks, you will also likely have a bond fund option and a balanced fund option. The bond funds and the balanced funds will usually contain the following keywords: "income" and "equity and income." There will also undoubtedly be a fund option described as "capital preservation" or simply, "money."
In my Successful Investing service I give subscribers specific buy and sell recommendations, but I also tell them how to position their assets properly in a limited-choice, 401k-type plan.
One of the ways we do this is by using these mutual fund "keywords," as they can be employed as a guide to help subscribers match up the kind of mutual funds we are recommending with the kind of mutual funds that are available in their specific accounts.
A new feature we’ve added just this month to Successful Investing is what we call our "401k Model Portfolio."
We know your choices are limited in a 401k or 403b retirement account, and that often makes it impossible to invest in many of our recommended sector ETFs. So, for those of you out there who are currently only investing through a 401k-type plan, we’ve now added something specifically for you.
Would you like to discover how to maximize your 401k dollars? Would you like to learn how to profit in the market regardless of its direction? Then I invite you to click on the link below and find out more about my Successful Investing service: