Just my two cents, but a 1.86% return in investment for managed accounts is pretty grim, especially when you look at the net. With my 401K's target date accounts, when you subtract the fees (2 to 3+ percenet) there's actually a really significant net loss. Thanks but no thanks, I'll keep managing my own.
Peggyof CA7:20PM February 23, 2010
When you invest in either a 401K or an IRA you now have some good hard data on how these investments did in both the dot-com collapse early in the last decade and the financial meltdown we are still suffering through. You can easily see how these funds did by looking up the performance on Morningstar or even MSN.
Make sure you are diversified among the asset classes to soften these downdrafts. My 401k suffered about a 28% hit but because I didn't sell I recovered a great deal of that by simply waiting it out. If you sell at the bottom you always lose.
Target date mutual funds are all over the lot as far as asset allocation goes, you have to understand what they invest in before giving them your money. The more conservative ones will not give you great returns but they will not suffer calamatous losses either.
Don't chase returns. Save as much as you can and invest it wisely - 90 day return figures have nothing to do with investing wisely.
Bobof MA1:30PM February 16, 2010
Working for a full service brokerage in Mutual Funds, I would STRONGLY NOT RECOMMEND Target Date Mutual Funds. During the past financial meltdown crisis, I have watched target date mutual funds probably loose the most value in retirement accounts. Sure, these funds promised alot, but I have yet to find the analyst who can accurately reallocate a persons retirement funds based on target dates.
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Peggy of CA 7:20PM February 23, 2010
Bob of MA 1:30PM February 16, 2010
dw of MO 1:53PM February 09, 2010