How should I invest in my 401k? These are the options given to me?

Question

Black Rock Basic Value Fund B

Black Rock Balanced Capital Fund B

Black Rock Global Allocation Fund B

BlackRock Value Opportunities Fund B

BlackRock Fundamental Growth Fund B

Merill Lynch Retirement Preservation Trust fund

Answer 1

How you should invest depends on how much risk you can tolerate. I've gone to a couple of different financial planner folks in the last couple of years and they say the same thing.

Basically, if you can afford more risk, be more aggressive in your investment strategies. If you can't, be more conservative. I've been told that the younger you are, the more aggressive you should be. Also, if you are close to retirement, be more conservative, as you have less time to recover from a loss. Other considerations are children and other dependents.

I've been advised to use the rate of return as a measure of risk. So the higher the return the greater the risk.

I did not look at each of the funds you mentioned, simply because I do not know any of the details of your situation.  You will have to look at the details of each fund and decide based on your circumstances.

Answer 2

wow... they don't really care about you and your needs...

To my mind the best way to invest money is to invest in someone's business. It's safer and more profitable. I have invested in good business and now I am getting guaranteed 40% annual interest.

NOTE: I don't need your money.

I wish you success in your investments!

Answer 3

I looked at a few of the funds and they stink. You can go to Yahoo Finance, then investments, mutual funds and then funds by family and look at the Black Rock funds. I don't know what the Merill Lynch fund is since Merill isn't listed.

The Black Rock Global Allocation Fund had pretty good performance and is well diversified but carries a 1.84% expense ratio which is a rip off. Anything over 1% is shameful and abusive. I would put the minimum amount to get the maximum match by your company and then put the rest into a Vanguard IRA or Roth. Their Vanguard Star Fund is similar and has an expense ratio of about 1/4 of the Black Rock Fund.

401k Administrators are supposed to act in behalf of the employees. These choices indicate that your 401k Administrator is either ignorant or is making deals that benefit the company not the employees. e.g.Black Rock might be giving the company a piece of the 1.84% or other benefit. You should send a professional letter to your Administrator requesting better and more inexpensive choices for example index funds and target date funds.

Answer 4

ALWAY'S INVEST IN A 401K, YOU CAN'T GO WRONG.