Best 401K Investment Companies That You Should Know About
Retirement is one aspect of our lives that needs to be thoroughly planned so that we can lead a smooth and peaceful life when unemployed with no bumps. So, it is important that one starts saving up right from the time one is employed and saves up a part of his income. One such retirement plan is the 401k which helps you save your income and comes along with certain benefits.
However, there are various types of 401k plans available in the market and it is important for one to carefully choose a plan that would meet their needs and requirements and fit them perfectly. The best choice of mutual funds for 401k plans would be the ones with low expense ratios, with funds which are actively managed, and good long-term track records. Here are some of the best 401k investment companies:
- Vanguard 500 Index (VFINX): This company has an expense ratio of about 0.14% which would mean about $14 for every $10,000 invested annually. The minimum initial investment required would be $3,000. It would be a smart choice to make to choose this company as it is a low-cost, passively managed stock fund and invest in about 500 of the biggest companies in the US.
- American Funds Growth Fund of America (AGTHX): This company has an expense ratio of 0.66% and requires its clients to make a minimum initial investment of $250. This would be a smart choice to make for investors who would prefer an actively managed large-cap stock funds. AGTHX has a very balanced portfolio with stock in large-cap U.S. stocks and 10% also allocated in foreign stocks.
- Dodge & Cox Stock (DODGX): The expense ratio of this company is 0.52% and it requires its clients to make a minimum initial investment of about $2,500. This company works smartly by working a team management approach that invests in currently unappreciated large-cap stocks which would see an exponential growth in the near future. This strategy has worked quite well for the company to attain recent top holdings.
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