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Getting started - picking fund companies
boatmanea 05-03-2008, 5:13 PM | Post #2514363 |  20 Replies
0  

Hello all,

This is my first post, so please don't hold it against me. I am an investment newbie - married, 2 young kids, 35 years old with nothing invested and like all of us, worried about my investment future. I've just separated from the ilitary, started a new job with a state employer, and have limited choices for their ORP (Optional Retirement Plan). I'll be putting in about 16K (matched) yearly. I need to select one of their Fund families before I can get started.

I've gone through Morningstar.com, Fool.com, the Yahoo Finance board and there is plenty of advice about everything else. So, here are my options: AIG (VALIC), Fidelity, ING, Lincoln National, Metropolitan Life, and TIAA-CREF. I've looked at 1/3/5 year fund family performance and everything looks very silimar. I've looked at individual funds and they are all over the map. I've got limited time to make a decision and the amount of information out there is extremely overwhelming. I've also spoken to representatives from each company and each of them has 'the best' amount of options (of course.)

What I am asking for is for opinions on which company might be a better choice and why, over the long term. I'm not looking for overnight success, golden tickets, or any other market 'magic' - I believe in investing in the long term, hopefully with reasonable returns for a nice retirement. Thank you for your time.

-EB

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EB
oildog 05-14-2008, 3:59 PM | Post #2517826
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I think your portfolio has far too many funds.  When people talk about "not putting your eggs in one basket," it is in reference to securities, not mutual funds.  Generally, mutual funds are already widely diversified across a large number of securities, so there is no need to hold a large number of funds (unless you are allocating to specialty funds like FSDAX).  If anything, holding a large number of active funds makes it more likely that your portfolio will perform like a market index fund, but with higher fees. 

For any new investor, my advice is to use low-cost index funds.   FFNOX is an excellent option.  You could allocate most of your assets to that fund and make adjustments on the margins by adding foreign; bonds; small-caps etc. as you see fit. 

Best,
Oildog

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Funds to consider!
oppeg 05-14-2008, 4:19 PM | Post #2517831
1  

I would look at these funds before I made a final discussion.

Large Cap: STRGX,FDFFX,JARTX,JORNX.

International: HAINX/HIINX,GIGSX,JAOSX

Mid Caps: CGMFX,FLVCX/FLVIX,HFTFX

Small Caps:HRVIX,STSCX,RYVFX ( better thanRYVPX)

 I would go with maybe 4 large cap funds,3 International,3 Mid caps and 2 Small caps for a total of 12 funds.

Only an opinion for what it's worth.Good luck.

Ron

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Re: Getting started - picking fund companies
Bigmac4me 05-14-2008, 6:30 PM | Post #2517873
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boatmanea,

I also work for the UT System as well and currently have my investements with Fidelity.  In addition to your ORP contributions, you should also be eligible to contribute additional pretax dollars via the TSA through Fidelity as well.  The contribution limits to the TSA are the same as those for and IRA. 

I agree with oildog that you chose too many funds.  Talk to the rep, and hopefully they can work out an investment plan with you based on your goals.  If not, seek some additional advice, although you probably do not have too much time before you have to decide.

 Paul

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Re: Getting started - picking fund companies
boatmanea 05-14-2008, 6:53 PM | Post #2517881
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I figured that I was going a little overboard as I thought about all the funds on my drive home. I think I'll knock it down to 10 to 12 total.

 As far as other places to invest, we're certainly looking at other options, but want to get the 403b started and see where we sit financialy before I begin contributing to other areas (IRA, TSA< etc...)

 Thanks all! I really appreciate your comments!

 -EB

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Re: Getting started - picking fund companies
boatmanea 05-15-2008, 9:45 PM | Post #2518338
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Allright, here's the final cut. Thank you very much to all of you who've spent time commenting and providing your opinions and critiques. It was very much appreciated and helpful. I'll be sending this in to the portfolio manager Monday.

Large cap
15% ICSLX MainStay ICAP Select Equity Portfolio
15% FVDFX Fidelity Value Discovery
15% NBPTX Neuberger Berman Partners - Trust Class
15% JAMRX Janus Research
Foreign/Emerging markets
10% LZEMX Lazard Emerging Markets - Institutional Class
10% VHGEX Vanguard Global Equity
Mid cap
10% FLVCX Fidelity Leveraged Company Stock
Small cap
5% RYVPX Royce Value Plus - Service Class
Specialty
5% FNARX Fidelity Select Natural Resources

-EB

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