Any investment gurus out there, I’d like to know which one would provide higher ‘return on investment’, long-term? Any advice would be appreciated. Thank you.

 

  • Uncle D 11:57 am on February 8, 2010

    I think you may mean money in a 401K or an IRA?
    Most 401K’s have options to invest in mutual funds. often the funds are not very good. In an Ira you can choose what funds you wish to invest.

    There are two schools of thought selecting the best mutual fund. In one school the best mutual fund is the one with the best manager. The other school believes index funds are the best choice. Research shows that index funds outperform 80% of domestic stock funds. This percentage goes down as you get into international funds sector funds, and particularly emerging market funds. In the case of many 401K’s, or 403B’s your choices are very limited. In those cases an index fund is the best choice. If you have a self directed IRA, a lot of choices in your 401K, or investing outside of a retirement plan then I don’t think and index fund is the best choice.

  • Yorky 11:58 am on February 8, 2010

    A 401k is not an investment, it is a tax entity and its return is based on the investments made in it.