Is it worth having a guided portfolio services w my 401k??

Question

Hi,
I just signed up for my company's 401k program and the agent adviced me to go ahead and set-up a guided portfolio service that would be done by morningstar. The fee is .60%, is this worth it? I get a 10 day trial and after which I could cancel it and do it on my own. The services state it will do the following: Wealth forecasting, asset allocation, investment selection and asset management. Thanks!

okay, I'm 33 years old and here is the list of fund:
AIM small cap growth fund
AllianceBernstein International Value fund
American Century Gov. Money Market fund
American Century Inflation Adj. Bond
American century ultra
American Beacon small cap
Calvert Social investment equity
DWS Health care
Dreyfus midcap index
dreyfus small cap stock index
JP morgan capital growth
janus adviser forty
Janus growth and income
Munder balanced
Mutual shares
Oppenheimer capital appreciation
pioneer equity income
putnam global equity
putnam international
sunamerica focused balanced strategy portfolio
sunamerica focused equity strategy portfolio
TRowe price science and tech
vanguard 500 index
vanguard total bond market index
wells fargo advantage govt. securities

There you go. Should I go for aggressive or moderate? thanks!

Answer 1

I've been doing my own for 25 years, now. One thing you DON'T do with a 401K is day-trade. Your 401k investments are very long-term. For my portfolio, sometimes it is a couple of years between changes in investments. For example, I moved stock funds to bond funds right after the hi-tech stock bust around 2000 (way before the Dow hit it's low in the 7000s, and when that all settled out 2 years later, I moved back to stock funds.

Just get some high growth funds with good long-term track records and you should be fine. If you can maintain 10-13% over the long haul you are doing great. A money manager might be able to get you another 1% on top of that, but if it cost's you 0.6% is it really worth the extra 0.4%?

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Answer 2

sure, and as a lot as you may have the funds for. Why? because it lowers the taxes you're paying now. So, a 2% contribution will easily bring about a below 2% relief on your take-homestead. In some circumstances, it might nicely be a threat to fantastically a lot enhance your take-homestead by using putting funds right into a 401(ok). Now, there are options, including a Roth IRA or classic IRA. it really is better relies upon on your situation, yet they're options in the adventure that your organization's 401(ok) application has too restricted funding options. yet when this technique promises sturdy options that be perfect for you, then do not trouble about the shortcoming of adventure. concentration on the very shown reality that you're putting funds away and that you're deferring taxes (with any luck to a time once you'd be at a decrease fee). rather, the excuse of no longer contributing because there is not any adventure is only undeniable stupid. It makes no experience, except they could communicate about a better functional option. And, no, no longer having a retirement fund isn't a sturdy determination.

Answer 3

Not at all worth it. How many options do they give you? If you do the %s right up front no need to pay that much every year. Would add up over time. Tell me your age via answers + the options and would be glad to give solid %s for nothing. Have done it for many others.

Answer 4

Buy yourself the book "Common Sense on Mutual Funds" by John Bogle. It will explain everything you need to know about mutual funds and how small fees (.60%) will cut into YOUR profits.

Answer 5

Morningstar is good, but I don't think it's something worth paying for on your part. If you want to see any Morningstar reports the agent should run them for you. Seems a little shady to me that someone wants you to pay for it.

Answer 6

No.

I will help you for FREE.

I am a Portfolio Manager.