I don’t have to work these days. Besides reading the Peter Lynch’s book, checking out Crocs and Heelys in the stores, I also had a little time to review how I did with my 401K and taxable stock account. The good news is my 401K is getting a 18% gain, and for the first time in 3 years, I did not lose money in stocks. Of course for 401K one year’s gain does not mean too much, because we are looking at 20 or 30 years down the line. But I think I did one thing right: allocate my 55% contributions to value fund, and 30% to international (value) fund. In year 2006 international fund was a big winner partially due to the weakness of dollar. And from my observation value fund outperformed index fund and growth fund in most cases. For the year 2007 I will boost the international value fund to 35% for the reasons I mentioned above. This way I am putting 60% in the value funds. The following are the mutual funds in my 401K account.
Fund Name Fund Symbol Price as of Average Annual Return
12/29/2006 1-Year 5-Year
Royce Total Return Serv* RYTFX 6394 $13.61 13.53% na
Vanguard 500 Index Fund VFINX 0040 $130.59 15.64% 6.07%
Vanguard Explorer Fund VEXPX 0024 $74.71 9.70% 8.21%
Vanguard Windsor II Fun* VWNFX 0073 $34.75 18.25% 10.12%
Vanguard Intl Value Fun* VTRIX 0046 $ 40.34 27.37% 17.21%