Can some one please help me choose the best retirement fund for my 401K.?

Question

MetLife Stable Value
PIMCO Total Return/Inst
Vanguard Target Retirement Inc.Trust II #
Vanguard Target Retirement 2005 Trust II #
Vanguard Target Retirement 2010 Trust II
Vanguard Target Retirement 2015 Trust II
Vanguard Target Retirement 2020 Trust II
Vanguard Target Retirement 2025 Trust II #
Vanguard Target Retirement 2030 Trust II #
Vanguard Target Retirement 2035 Trust II #
Vanguard Target Retirement 2040 Trust II
Vanguard Target Retirement 2045 Trust II
Vanguard Target Retirement 2050 Trust II
American Century Value Instl
Vanguard Instl Index 500 #
American Funds New Economy R6 #
T. Rowe Price Mid-Cap Value #
T. Rowe Price Mid-Cap Growth #
T. Rowe Price Small-Cap Value Fund
BlackRock Small Cap Growth Eq/Instl
American Funds EuroPacific Growth R6 #
Lowe's Companies, Inc. Common Stock

Answer 1

Do not overload on company stock (Lowe's).



I was an American Century Value investor for a while. American Century has been a decent mutual fund company in the past.



T. Rowe Price Small-Cap Value is an excellent suggestion: over the last several decades, small caps outperform and in particular small cap value.



I would probably invest most of the money in an S&P 500 index fund--I'm guessing the Vanguard Instl Index 500 # is one of these.

Answer 2

I agree that it would be helpful to know more about you. You could EDIT your question to add info about age, investing experience, risk tolerance.



Your plan has some good choices. Vanguard, T. Row Price and Pimco are absolutely top notch firms. The are no really bad choices.



Rather than choosing one fund, I suggest that you diversify a bit. It is also important for you to start to understand the choices.



MetLife Stable Value - A stable value fund invests in GICs (Guaranteed Investment Contracts), typically issued by insurance companies. Probably paying about 3% per year, which is fairly good in today's low rate environment. This is the safest option.



Pimco Total Return - This is a bond fund, perhaps the best available. If interest rates rise sharply, this fund will fare poorly. Otherwise, it should do fairly well.



Vanguard Target Retirement - These funds are a mix of stocks and bonds. The later the date, the higher the % in stocks. The idea is that the younger you are, the more time you have to benefit from riskier investments.



Vanguard 500 - Mimics the performance of the S&P 500, large well known US stocks.



American Funds EuroPacific - This is the only selection that is international. Investing some funds in currencies and markets outside the US is a great way to diversify.



The following mix is fairly conservative because markets are a bit crazy right now.



Vanguard 500: 30%

EuroPacific : 20%

Pimco: 30%

Stable Value: 20% <- If you want to be safer, this is the one to increase.

Answer 3

It would help if we knew a little bit more about you, like how old you are.



If it was me and I was 35 years old (I'm not but wish I was) in this current environment, I would say that all the stock funds are essentially the same and there is not much reason to think that any of them will beat Vanguard Index 500 over the long term. John Bogle will bet on it. I wouldn't invest in Lowes common stock unless there is a big discount on it. I personally do not like "Target" funds because more goes on in my life needing rebalancing then just my age. I probably wouldn't use a target fund as a bond fund, but I would think about it.



I would always but some money in stocks say 35% in Vanguard 500. Pimco is a great fund so 45%. The remainder in Metlife which I presume is for cash but I'm too lazy to look it up.