Author Topic: American Funds - Seeking the Forum's Ideas  (Read 2520 times)

Farmgirl

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American Funds - Seeking the Forum's Ideas
« on: November 13, 2014, 07:55:32 AM »
My employer started a 401k plan.  I contribute 3% and he contributes 3%.  All pre-tax.  Does anyone have any experience with American Funds (that's my only investment option).   They have an Amcap R2 fund that is all stock.  I'm 56 and will be working at least 2 more years (when the farm will be paid off).  It's a piddley amount of money, but I'd like to do what is best.

Seeking the Forum's sage advice.




wtjbatman

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Re: American Funds - Seeking the Forum's Ideas
« Reply #1 on: November 13, 2014, 08:24:32 AM »
We need a list of the funds in your 401k. Their names, ticker symbols, and expense ratios.

ltt

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Re: American Funds - Seeking the Forum's Ideas
« Reply #2 on: November 15, 2014, 02:54:34 PM »
I have an American Fund--Washington Mutual.  It was suggested to me by a banker years ago when I was rolling over some 401K money.  It was that and Franklin Templeton, so I split the money.  The AF Wash Mutual I have routinely added money to over the years, and it has paid a dividend consistently on a quarterly basis which I've reinvested. If you do some research, I think you will find out it is a decent fund.

Frankies Girl

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Re: American Funds - Seeking the Forum's Ideas
« Reply #3 on: November 15, 2014, 03:05:53 PM »
I had a 401k through them many moons ago... high expense ratio funds that also were front loaded. Do post what funds are available to you so we can at least help you pick the best available.

lhamo

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Re: American Funds - Seeking the Forum's Ideas
« Reply #4 on: November 15, 2014, 04:45:10 PM »
My DH is stuck with American Funds -- though thankfully he doesn't have to pay horrible fees as the organization/its founder invest enough to get them waived.  A few years ago they started a Target Retirement Fund option, so we moved most of his account into that.  Still have a bit in Europacific-American and Washington Mutual as well. 

The_Dude

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Re: American Funds - Seeking the Forum's Ideas
« Reply #5 on: November 15, 2014, 08:15:35 PM »
Depends on the share class of the funds.  There are a lot of different share classes and some of the retirement ones available in 401k plans don't charge a load and have lower expense ratios.

They are not nearly as cheap as an index fund but some of the retirement share classes have some of the lowest fees in the industry for actively managed funds.

hodedofome

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Re: American Funds - Seeking the Forum's Ideas
« Reply #6 on: November 15, 2014, 08:50:44 PM »
The R shares are much better than A shares if you can get them. You could do a lot worse than R class American Funds. I'm stuck with them at my work as well but the track records over long periods of time aren't horrible.

ClaycordJCA

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Re: American Funds - Seeking the Forum's Ideas
« Reply #7 on: November 15, 2014, 09:17:23 PM »
I suggest looking on Morningstar.com. They report past performance through their star ratings (no guarantee of future return) and their opinion on potential future performance by rating a fund as gold, silver, bronze or neutral.   Not all funds are rated, however, but checking is at least a start.

Joel

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Re: American Funds - Seeking the Forum's Ideas
« Reply #8 on: November 16, 2014, 01:10:24 AM »
Is this a simple IRA? If so, I would check to see if it's a plan where you can use a different company. I just helped my dad move his company simple IRA to vanguard. He just talked to his office manager and had to complete a few forms. Saving him 6% sales charges and 2% expense ratios immediately.