I have $200,000.00 in 401k.I invest in Putnam stable fund.I make $9000 ayear.Any other investment makes more?

Question

I have $200,000.00 in 401k.I invest in Putnam stable fund.I make $9000 ayear.Any other investment makes more?

Answer 1

I am not aware of a Putnam fund called the  Stable Fund.   4.5% annual return is nothing to brag about but in today's market it is nothing to sneeze at either.  Is Putnam funds the only alternative you have in your 401k?  In general Putnam is not one of the better mutual fund companies.  Their expense ratio is too high and their management of their funds leave something to be desired.  Over a period of about 5 to 10 years you should expect a return of about 8% annually or in this particular case about $16,000 rather than $9000 but the fact that your are invested in "Stable" rather than "Conservative"  will limit your returns.

Investments with more risk generally do tend to yield more over a longer period of time but may or may not depending on who is managing them.

I do have to tell you though that if all you are netting is 4.5% you are not keeping up with inflation, which is a shame.

Answer 2

Thats less than 5%  You could make more than that in a CD at any bank with that size deposit

Answer 3

Take about $ 50,000. of that...buy about 2500 shares of Harvest Energy Trust ..( a Canadian Energy company )... your MONTHLY dividend will be $ 750. or $ 9000. annually...

getting the same return for one quarter of the investment.

( Priceless )

Answer 4

You only make 9k a year?  Jesus!

Answer 5

your talking about 200k i would look somewhere else than yahoo answers to answer a question about that much money i would request your banker or someone with credibility

Answer 6

"Stable funds" are normally the most conservative, lowest-risk choice available to most 401ks, and so they often also have the lowest return.  So by picking it, you have traded off low returns for the lower risk.

Since we don't know your age, time to retirement, or anything else, we can't really speak to whether this makes sense in your particular situation.

However, even when I am 85 I really doubt I would put all my money into a stable fund or anything else quite that extremely conservative.  For one thing, the returns may not even keep up with inflation.  

Why don't you read up on appropriate asset allocations by looking at some sites like William Berstein's http://www.efficientfrontier.com/aa/inde... or some of these other introductory sites:

http://en.wikipedia.org/wiki/Asset_alloc...

http://www.sec.gov/investor/pubs/assetal...