Comments on: The 401K Maximum- How to Get Maximum 401K Value http://401kmaximum.org/401kmaximum/the-401k-maximum-how-to-get-maximum-401k-value#utm_source=rss&utm_medium=rss&utm_campaign=the-401k-maximum-how-to-get-maximum-401k-value 401K Contribution Limits and Other Personal Finance Tips to Maximize Your 401K Wed, 16 Jun 2010 05:58:01 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Fern LaRocca CFP® http://401kmaximum.org/401kmaximum/the-401k-maximum-how-to-get-maximum-401k-value/comment-page-1#comment-26 Fern LaRocca CFP® Wed, 16 Dec 2009 20:57:41 +0000 http://401kmaximum.org/?p=257#comment-26 Good for you- finding an asset allocation and sticking with it! Target date and life stage funds are coming out to satisfy our laziness around picking an asset allocation. Studies are coming out that they are low return performers and they also have high fees. Pay yourself and stick with a mix of no-load, index, and Exchange traded Funds. Good for you- finding an asset allocation and sticking with it!
Target date and life stage funds are coming out to satisfy our laziness around picking an asset allocation. Studies are coming out that they are low return performers and they also have high fees. Pay yourself and stick with a mix of no-load, index, and Exchange traded Funds.

]]> By: Mike Stankavich http://401kmaximum.org/401kmaximum/the-401k-maximum-how-to-get-maximum-401k-value/comment-page-1#comment-24 Mike Stankavich Tue, 15 Dec 2009 13:05:59 +0000 http://401kmaximum.org/?p=257#comment-24 Fern, you're absolutely right - market timing has been proven not to work over and over and over again. There will always be a few people who get it right by chance, and they are often the ones that end up in the headlines. But it just doesn't work consistently, and you do indeed end up costing yourself over time. There are a lot of good guidelines for asset allocation out there. A lot of them consider the risk and volatility of the investment class versus your age. I used to do that, but recently I decided to shift to a more balanced allocation and stick with it. Another approach that works well for those folks who don't want to try to understand asset allocation is to use a life stage mutual fund. Life stage funds are set up for a target retirement year, and gradually shift their allocation from aggressive growth to conservative capital preservation as the target retirement year approaches. Fern, you’re absolutely right – market timing has been proven not to work over and over and over again. There will always be a few people who get it right by chance, and they are often the ones that end up in the headlines. But it just doesn’t work consistently, and you do indeed end up costing yourself over time.

There are a lot of good guidelines for asset allocation out there. A lot of them consider the risk and volatility of the investment class versus your age. I used to do that, but recently I decided to shift to a more balanced allocation and stick with it.

Another approach that works well for those folks who don’t want to try to understand asset allocation is to use a life stage mutual fund. Life stage funds are set up for a target retirement year, and gradually shift their allocation from aggressive growth to conservative capital preservation as the target retirement year approaches.

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