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Posted: 1/25/2014 6:38:18 AM EDT
Hello everyone,

I need some help with my retirement, I want to make sure I am getting the most out of my money. I currently have a pension set up through my employer that I have a little bit of money in. I don't really know a lot about all the different funds that are offered to me.

Right now, most of my contributions go into a multi cap which in the last year has earned around 22%. I have notice that theres other categories (large, mid, and small cap) that have earned more over the past year, from 30% to 40%. I have some time till I retire, I'm only 29, so would it be smart for me to transfer into one of these other fund? Should I just go with the one that has had the biggest return? Any help would be appreciated. Thank you.

Cody
Link Posted: 1/25/2014 6:49:31 AM EDT
I suggest looking into these two books:

common sense

Boglehead guide
Link Posted: 1/25/2014 7:13:41 AM EDT
A. Do a search for the "couch potato " portfolio.
B. As a general rule " Index Funds" out perform 85% of all other managed funds in the market.
C. Chasing earnings. Buying into funds when they announce higher earnings is a fool's errand. See B.
D. Read 'Investing for Dummies'.
E. Pray that all of the doomsayers out there are wrong, and the total fuckheads in charge don't implode the economy in our lifetimes.
F. See E. When you find a good recipe for serving gold let me know. In the mean time........brass, ammo, powder, bullets and primers will always have trade value.
G. Go for the gusto, live sensibly well, drink, play golf, shoot lots of guns, get laid, teach kids to shoot, and to know history.

Good luck!
Link Posted: 1/25/2014 10:18:51 AM EDT
I like BEQGX.  I have stuck with that one for awhile in my Roth IRA.
Link Posted: 1/25/2014 11:16:00 AM EDT
To expand on my initial suggestion of what books to read I would also suggest that you look into Vanguard Funds ... they offer excellent performance and low fees.
Link Posted: 1/25/2014 11:24:42 AM EDT
Chasing sectors or funds that performed well the previous year, is dang near the same fools errand as buying into equities after they announce good earnings report.  You are following a herd each time you do that.

Nobody can predict the future.  The best anyone can do is try to learn from what has happened in the past.
Link Posted: 1/25/2014 3:42:10 PM EDT
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By Bohr_Adam:
Chasing sectors or funds that performed well the previous year, is dang near the same fools errand as buying into equities after they announce good earnings report.  You are following a herd each time you do that.  Nobody can predict the future.  The best anyone can do is try to learn from what has happened in the past.
View Quote


to wit:
http://www.callan.com/research/download/?file=periodic%2ffree%2f757.pdf

ar-jedi
Link Posted: 1/27/2014 5:31:15 PM EDT
[Last Edit: 1/27/2014 5:31:40 PM EDT by hicap]
i would go small and mid cap growth index funds,  they will beat the S&P 500 over time
Link Posted: 1/27/2014 6:55:19 PM EDT
"Past performance is not an indicator of future performance."

That is a disclaimer you will find on every mutual fund out there.  Don't chase the largest returns.  If you're going to follow a traditional investing strategy then this is what you should do:

Diversify you mutual fund holdings.  International equity, commodity, fixed income, etc.  Steer clear of a lot of actively managed funds or if you do choose active management, make sure the fees are low.  Also, add some fixed income to your portfolio.  At your age, probably no more than 20-25%.  That's what we're told by financial advisers to do right?
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