Posted: 5/18/2008 9:14:03 AM EDT
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I need to increase the amount of bonds I own to balance my investments. Right now I'm too heavily invested in stocks because the new 401k does not offer a no load bond fund, so I had to move everything into stocks. My brokerage with my IRA has no transaction fee funds. Unfortunately Vanguard is not one of them. I'm looking at either a LB Bond index fund with a slightly higher ER than vanguard or an ultra short US gov bond fund with a .5 ER. The LB index seems to pay a better return, but I noticed there is a fairly large percentage of mortgage pass through certificates. I'm a little worried about future sub prime fall out. Am I correct to be worried about this? The two funds I'm looking at are TWUSX and DBMIX |
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Thanks, I've decided on the DBMIX fund. You wouldn't believe the expenses and sales loads on some of the funds in my new 401k. A couple funds had 5.75% front loads and really high management fees. My company got bought so they are merging our 401k with theirs. They picked the funds your money will transfer to depending on the type of fund you already own. Some people are going to get hit with some big sales loads just on the transfer. It sucks because we used to have such a good 401k with Fidelity. Now it's some insurance company running it. They have a fund called the stable value fund which is supposed to be an equivalent to the fidelity money market. The stable value fund costs $2000 for every 10k invested over 10 years and hasn't paid more than 3% ever. It also has a 5.75% front load. What a rip off. 
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I'd contribute no more than 6% to your 401k (to get the match) and put everything else in an IRA on your own. Sorry your plan sucks. |
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