From Cynthia Scott of OMC Financial Services:
Points to consider when investing in a 401k/403b
**New rules that go into effect this year will disclose fees associated with both plans for employers and employees
**Fees can affect performance by reducing the fund’s return
**Asset allocation is one of the most important decisions in choosing an investment in your plan, i.e., stocks, bonds, international, etc.
**Who manages the fund and how long they have managed it is extremely important. Use outside sources such as Morningstar or call the mutual fund company directly to determine who the manager is.
**The fund manager who has a proven track record is more important than the fee; be aware that funds, such as international and small cap ones, may have higher fees than other funds but still should be included
**Avoid making investment decisions based upon more than a 5 year performance return; the manager who managed the fund may not still be there
**Do not invest based upon age; avoid target funds
