I'm looking to invest in Federated Kaufmann K (KAUFX) fund is this a good choice ? for roth ira,40k to invest

Question

which fund with t.rowe and vanguard would be good choice also ? looking for long term (45 year old) . how much can one expect to pay yearly to these funds ? ( fees, expense ratio )

Answer 1

Has a rock solid record. It would be a good investment. But I would not place all of my marbles into that one bag. This is a mid cap growth fund. Find also a couple of other funds in other segments of the market. Maybe a small cap fund such as PENNX, maybe a large cap fund such as ones offered by Fidelity, and maybe a foreign developed market fund.

It is best to have a well diversified portfolio, especially for retirement funds.

Answer 2

The fund is rated well, has decent returns, active management...just a little high on expenses ( but nothing to abandon it for)...all in all it should be a nice addition to a retirement account.
If you're only 45, when you look into T.Rowe and Vanguard, get just a little more aggressive and look at some global or international funds ... also consider some kind of real estate fund..(they'll be in commercial/ income areas...solid for years)
Ten or fifteen percent in those types of funds should boost your returns nicely for a few years....then get conservative at 53-55...
Always keep your eye on things, though...check those quarterly reports...or keep up on-line.
At finance/yahoo you can put any fund symbol in the "quotes" box and get some decent info on them...performance, holdings, etc.

Answer 3

The Kaufman fund is a good choice, but... it's 1.95% expense ratio (which includes a 0.50% 12b-1 fee) is rather high. But its returns for 1,3,5, & 10 years beats the growth funds from T.R.P & Vanguard. If you are willing to look at value or blend funds, T. Rowe Price has a Mid-Cap Value fund (TRMCX) and Vanguard has Mid Capitalzation Index (VIMSX) a blend fund, and Selected Value Fund (VASVX).
Fund Returns 1yr 3yr 5yr 10yr expense ratio
KAUFX 14.1 14.0 12.7 10.9 1.95%
TRMCX 19.3 16.0 15.2 14.2 0.82%
VIMSX 14.0 16.7 13.5 N/A 0.22%
VASVX 22.4 16.9 14.9 10.2 0.44%

Disclosure: I own shares in TRMCX.

Answer 4

right it relatively is one ingredient to recollect with reference to the Roth IRA account. there is by no potential any tax on it the place as there is on your 401k. This turns into significant whilst pondering your asset combination. income producing investments are taxed on the whole tax cost as would be your 401k. for this reason it relatively is wise to take a place a minimum of a few of your 401k in income producing sources--bonds, LPs, REITs. The income from each and each of those is taxed on the whole tax cost besides. Now simply by fact the Roth IRA is by no potential taxed, it is likewise smart to place those forms of sources into the Roth IRA additionally. and additionally fairness investments. What you missed to indicate are investments exterior of those 2 autos. in case you have some, they might desire to be investments which would be taxed on the capital beneficial components cost--fairness investments. relatively, till you're in the optimal tax bracket it relatively is wise to have portion of your fairness investments exterior of a 401k. via doing so the entire tax bill would be decreased, incredibly in case you're an prolonged term investor. in case you have the least hankering to take a place a number of you funds in gold and silver those relatively could be interior of a Roth IRA. the two are taxed as collectibles in any different case. yet another ingredient to contemplate in regard to the 401k is that for the duration of years yet to come the tax cost might desire to truly be larger, perchance a lot larger, than it presently is. on account which you relatively have not have been given any determination of putting non-mutual fund investments interior of a 401k different than for perchance corporation inventory, it relatively does make experience to take a place Roth IRA funds in corporation shares particularly than mutual funds. yet be careful. it relatively is rather tempting for many to take a position with their Roth IRA account incredibly short term identifying to purchase and advertising which in any different case may be taxed on the whole tax cost. which would be a stable thank you to shrink that cost of the Roth account. Be in basic terms slightly careful. make investments in the likes of MCD, WMT, JNJ, BDX, KO, and so on. or maybe ETP with its 8% dividend or PAA with its 7.5% dividend. and don't make investments it in fewer than 5 distinctive companies.