ROTH account and 401K help

[DaShen]

I will be talking with some people I know who are good with money, but I have just opened up retirement deferrment fund, similar to a 401k. Also I plan on opening up a Roth account. I already have an IRA, but it is small and isn't Roth.

Question 1: Should I open with Oppenheimer or American Funds for the Roth? Oppenheimer is a bigger Investment company, but I heard American Funds is good, too. I am leaning towards Oppenheimer.

Question 2: This is for my deffered comp retirement fund. Right now, I am about 40% in Mid-cap, 20% in Vanguard Wellington, 10% International Small Cap, 10% Templeton Global, 20% Sit Small. I am usually not an aggressive investor, but I was thinking of being aggressive the first couple of years, and spreading the percentages over the next two years into more consevative equity. Good idea? Should I rethink a few of the equity I am currently invested in?

Question 3: What should I invest in my Roth account?

Any worthwhile ideas? Again, I am going to mull over this for a few weeks with other people I actually know (my uncle is a wise investor), but I wanted your opinion on the matter.

 

[DaShen]

Seriously, no one?

Oh well, I probably would take any advice with a grain of salt anyways.

 

[tfinch2]

Put it all on red.

 

[kranky]

Tell us why your choices are between Oppenheimer and American Funds.

 

[DaShen]

Originally posted by: kranky
Tell us why your choices are between Oppenheimer and American Funds.

Oppenheimer has more investment choices, but because it is a big investment fund the returns are more than likely lower margins. The one thing is I am sure it is stable.

American Funds is a small investment firm, but looks stable, and better margins. Plus my financial consultant for my portfolio said it was good. Although she invests in Oppenheimer herself.

 

[JS80]

Originally posted by: tfinch2
Put it all on red.

I say all on black.

 

[JS80]

Originally posted by: DaShen

Originally posted by: kranky
Tell us why your choices are between Oppenheimer and American Funds.

Oppenheimer has more investment choices, but because it is a big investment fund the returns are more than likely lower margins. The one thing is I am sure it is stable.

American Funds is a small investment firm, but looks stable, and better margins. Plus my financial consultant for my portfolio said it was good. Although she invests in Oppenheimer herself.

tsk tsk tsk

 

[puffff]

Originally posted by: JS80

Originally posted by: tfinch2
Put it all on red.

I say all on black.

i'll put a few dollars on 0 and 00. that way, at least one of us will win.

 

[DaShen]

Originally posted by: JS80

Originally posted by: DaShen

Originally posted by: kranky
Tell us why your choices are between Oppenheimer and American Funds.

Oppenheimer has more investment choices, but because it is a big investment fund the returns are more than likely lower margins. The one thing is I am sure it is stable.

American Funds is a small investment firm, but looks stable, and better margins. Plus my financial consultant for my portfolio said it was good. Although she invests in Oppenheimer herself.

tsk tsk tsk

Hahahaha, yeah, that is why I am leaning towards Oppenheimer.

I will be asking some people later this week. Oh well, I guess all ATOTers are too young to know the difference.

 

[kranky]

I'm biased towards fund families which have low fees, like Vanguard. I don't know what American Funds or Oppenheimer charges, but I am pretty confident it's a lot more than Vanguard.

Carefully research the account fees, the initial sales charge (load), the ongoing expense ratio and 12b1 fees. Do this before you commit to a particular company, because the ones with high fees are likely to charge you another fee if you move your money somewhere else.

 

[GeneValgene]

Originally posted by: kranky
I'm biased towards fund families which have low fees, like Vanguard. I don't know what American Funds or Oppenheimer charges, but I am pretty confident it's a lot more than Vanguard.

Carefully research the account fees, the initial sales charge (load), the ongoing expense ratio and 12b1 fees. Do this before you commit to a particular company, because the ones with high fees are likely to charge you another fee if you move your money somewhere else.

i use vanguard too. is there a reason why you are going conservative after just two years? if you are just starting, i would be very aggressive, and place at least 80% in stocks, and less than 20% in fixed income. my assumption is that you're not going to be retiring for another 30 years or so

 

[DaShen]

Originally posted by: GeneValgene

Originally posted by: kranky
I'm biased towards fund families which have low fees, like Vanguard. I don't know what American Funds or Oppenheimer charges, but I am pretty confident it's a lot more than Vanguard.

Carefully research the account fees, the initial sales charge (load), the ongoing expense ratio and 12b1 fees. Do this before you commit to a particular company, because the ones with high fees are likely to charge you another fee if you move your money somewhere else.

i use vanguard too. is there a reason why you are going conservative after just two years? if you are just starting, i would be very aggressive, and place at least 80% in stocks, and less than 20% in fixed income. my assumption is that you're not going to be retiring for another 30 years or so

How aggressive should I be though?

 

[GeneValgene]

Originally posted by: DaShen

Originally posted by: GeneValgene

Originally posted by: kranky
I'm biased towards fund families which have low fees, like Vanguard. I don't know what American Funds or Oppenheimer charges, but I am pretty confident it's a lot more than Vanguard.

Carefully research the account fees, the initial sales charge (load), the ongoing expense ratio and 12b1 fees. Do this before you commit to a particular company, because the ones with high fees are likely to charge you another fee if you move your money somewhere else.

i use vanguard too. is there a reason why you are going conservative after just two years? if you are just starting, i would be very aggressive, and place at least 80% in stocks, and less than 20% in fixed income. my assumption is that you're not going to be retiring for another 30 years or so

How aggressive should I be though?

very very...especially if you are just starting, you want to be as aggressive as possible in both your retirement accounts (401K and your roth ira). you shouldn't be afraid of wide swings in the market, because this money isn't coming out for another 30 years (and it's a no-no to touch it before then). you can gradually move your money to more conservative funds as you approach retirement

 

[DaShen]

Originally posted by: GeneValgene

Originally posted by: DaShen

Originally posted by: GeneValgene

Originally posted by: kranky
I'm biased towards fund families which have low fees, like Vanguard. I don't know what American Funds or Oppenheimer charges, but I am pretty confident it's a lot more than Vanguard.

Carefully research the account fees, the initial sales charge (load), the ongoing expense ratio and 12b1 fees. Do this before you commit to a particular company, because the ones with high fees are likely to charge you another fee if you move your money somewhere else.

i use vanguard too. is there a reason why you are going conservative after just two years? if you are just starting, i would be very aggressive, and place at least 80% in stocks, and less than 20% in fixed income. my assumption is that you're not going to be retiring for another 30 years or so

How aggressive should I be though?

very very...especially if you are just starting, you want to be as aggressive as possible in both your retirement accounts (401K and your roth ira). you shouldn't be afraid of wide swings in the market, because this money isn't coming out for another 30 years (and it's a no-no to touch it before then). you can gradually move your money to more conservative funds as you approach retirement

Any specific equities and funds or stocks I should invest in?

 

[DaShen]

Anybody else, thanks.

 

[austin316]

Originally posted by: DaShen
I will be talking with some people I know who are good with money, but I have just opened up retirement deferrment fund, similar to a 401k. Also I plan on opening up a Roth account. I already have an IRA, but it is small and isn't Roth.

Question 1: Should I open with Oppenheimer or American Funds for the Roth? Oppenheimer is a bigger Investment company, but I heard American Funds is good, too. I am leaning towards Oppenheimer.

Question 2: This is for my deffered comp retirement fund. Right now, I am about 40% in Mid-cap, 20% in Vanguard Wellington, 10% International Small Cap, 10% Templeton Global, 20% Sit Small. I am usually not an aggressive investor, but I was thinking of being aggressive the first couple of years, and spreading the percentages over the next two years into more consevative equity. Good idea? Should I rethink a few of the equity I am currently invested in?

Question 3: What should I invest in my Roth account?

Any worthwhile ideas? Again, I am going to mull over this for a few weeks with other people I actually know (my uncle is a wise investor), but I wanted your opinion on the matter.

Go with either Fidelity or Vanguard and roll all your money for your Roth into either of the funds where you just select your retirement date. I would also suggest if you retire in 2030, to be more agressive and choose the 2035 fund, since these funds are not very agressive. Then, read up online about what no-load or low-cost funds are available and invest in those.

 

[alrocky]

1. Oppenheimer, American, and Franklin Templeton are all LOAD fund families which means (unless it's waived thru your employer) you're losing 5.75% of your money right away. Their Expense Ratios are nothing to brag about either. Sit Small Cap (SSMBX) ER = 1.5%:thumbsdown: Vanguard Wellington (VWELX) ER = .29% :thumbsup: I'd shy away from LOAD families and high ERs. Look at the previously Fidelity, Vanguard or T. Rowe Price if they are available thru work and for your ROTH IRA.

2. What are the fund ticker symbols for your mid-cap, International Small Cap, and Templeton Global? 40% in Mid-cap is a bit odd. Which 1 of the 4 Templeton Global do you have?

Being 80/20 Stocks/Bonds is considered aggressive. Being aggressive for only the "first couple of years" really doesn't make much sense. If you really want to be aggressive invest more money for retirement. Which means max out your 401k (assuming good fund choices available there) and max out your ROTH IRA every year ($4000 for year 2005 and $4000 for year 2006), and additional investments into a taxable account.

3. Your ROTH fund choices should be considered inconjunction with your 401k picks and the two combined/viewed as one portfolio. Suggest you consider Fidelity, Vanguard or T. Rowe Price for your ROTH IRA.

Oppenheimer has more investment choices, but because it is a big investment fund the returns are more than likely lower margins. The one thing is I am sure it is stable. American Funds is a small investment firm, but looks stable, and better margins.

What do you mean by stable and better margins?

 

[OulOat]

Originally posted by: alrocky
1. Oppenheimer, American, and Franklin Templeton are all LOAD fund families which means (unless it's waived thru your employer) you're losing 5.75% of your money right away. Their Expense Ratios are nothing to brag about either. Sit Small Cap (SSMBX) ER = 1.5%:thumbsdown: Vanguard Wellington (VWELX) ER = .29% :thumbsup: I'd shy away from LOAD families and high ERs. Look at the previously Fidelity, Vanguard or T. Rowe Price if they are available thru work and for your ROTH IRA.

I've read that American Growth and American Europacific are loaded on both sides, but I haven't seen anything deducted in my 401k contributions. But in any case, those two American funds are, and having been, doing well, so OP may want to consider them.

 

[alrocky]

Originally posted by: OulOat
I've read that American Growth and American Europacific are loaded on both sides, but I haven't seen anything deducted in my 401k contributions. But in any case, those two American funds are, and having been, doing well, so OP may want to consider them.

Morningstar.com and the prospectus on the AmericanFunds site shows that Class A shares have a 5.75 sales charge but no backend fee (for purchases under $1 million). Class B and Class C have no front end charge but a 5% and 1% redemption sales charge respectively. The Class A shares have a moderate ER but the Class B and C shares hover round 1.5 for both funds. :thumbsdown: 12b-1 fee .25% :thumbsdown: EuroPacific is a Morningstar.com Analyst "Pick". :thumbsup:

If the amount going into your funds on your 401k statement equals the amount deducted from your paycheck then the front end load has been waived because you are making purchases thru your employer.