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What is American Funds and my 401k choice

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It’s 401k enrollment time, because of my recent job change. I have lived life without 401k contribution for several months now, although I tried to keep up with buying mutual fund Scottrade IRA account. But I found this IRA thing is not as easy my good old 401k account. Couple reasons:

1) Automatic payroll deduction and investment in 401k vs. manually deposit/buy fund in IRA;

2) Dollar average cost (DCA) for the investments (mutual funds) in 401k, vs. picking the best time to buy mutual fund cheap (not easy to time the market);

3) Choosing from about 10 mutual funds vs. choosing from thousands of mutual fund Scottrade offers (a daunting task, which I talked a bit in my earlier post).

Anyway, here is the new mutual funds and their respective weight I chose for my new 401k plan.

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Bounce back in my old 401k

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I did not do anything with my 401k when I left my old employer about one year ago. The past year was also a year of hugh up and downs. I managed not to do anything with it in the past year: no re-balance, no jump in and jump out, no rollover to IRA, and no withdrawl either. Here is the record in past year.

One Year
10-09-2008 to 10-08-2009: +16.90%

half year
03-09-2009 to 10-08-2009: +65.80%

01-01-2009 to 10-08-2009: +26.10%

Current asset allocation (100% equity)
39% US large cap, 23% US small cap, 30% Non-US developed market, 5% Non-US emerging market, 3% company stock.

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