[NA]Motley Fool

[mscard88]

If you want to make money in the markets but not play in the markets, buy index funds (preferably from Vanguard or similar no load, low expense index funds) and hold them. Data from multiple credible studies proves that even the best actively managed mutual funds WILL NOT beat the indexes over time. If time is shorter (i.e. approaching retirement) then perhaps an active strategy makes more sense, but that all depends on your financial situation and your personal goals.

If you have some extra cash and want to play in the markets, you better have an intimate knowledge of what you’re doing unless you like to lose money. If you’re relying on Fool or Cramer or similar media celebrities to pick your stocks, you’re probably better of in a mutual fund.

As to company 401k plans, most of the ones I’ve seen lately have been lackluster. My last company put everything in a target date fund which I could not change; the only reason I contributed was to get the company match. My current company doesn’t match, so I pay the taxes now and put that money in a brokerage account instead. That may or may not be the best answer for everyone.

Just my opinion.


JKG

I agree. As soon as I retired I transferred my 401K to various Vanguard funds. Company tried to get me to leave my $$$ in the company funds and I said nope.

 

[Matthew]

I agree. As soon as I retired I transferred my 401K to various Vanguard funds. Company tried to get me to leave my $$$ in the company funds and I said nope.

There are reasons to leave funds in a 401k after you move on (the "Age 55 Rule"), it all depends and make sure it's on your terms.

 

[mscard88]

There are reasons to leave funds in a 401k after you move on (ethe "Age 55 Rule"), it all depends and make sure it's on your terms.

No cost/taxes/penalty to transfer to Vanguard so I have more control and better choices where I want my money to work. 55 nothing to do with it in my case.