[JAque]

Hi George:

Thanks for response but let me clarify some of your statements:

"The point to stategy is to minimize luck, unless you are especially shrewd you can only do this through diversification and expense reduction.
1) As to GM ,Hughes and stocks it is not a good idea to own more than 4% of any particular stock.

As part of the mutual fund portfolio, I have the option to buy those 2 stocks. However this only on one of the 401K plans. This plan have a number funds to invest as well. I own a little stock in GMH.

2) I do not suggest you invest in a mutual that charges more than 1% as expenses.

I don not believe I pay for any of the funds as this is part of the benefit


3) I suggest you stick to index funds like vanguard and TIAA-cref.

I have 4x 401K plans . Each plan offers a family of funds, I can only pick within the group of that particular family and plan. However, one of my 401K plans offers TIAA-cref.


4) I suggest you include bond funds in your mix.

I have between 25 to 30 % invested in bonds across all 4 401K plans.

5) Assuming your salary is paid in US dollars you should consider some foreign bond funds just in case the president decides to get involved in foreign military adventures or run up deficits.
I do not have any of this.. I will give it a thought..!! good idea


6) If you are involved in the auto business I suggest you lean twards investing outside the auto business so that just incase the US auto business does not work out you will have something to fall back on, while if the US auto business is successfull you have you job.

I am in the auto business but the 401K plans have families of funds like fidelity, TIAA-cref., Cigna, etc. The only Auto related stuff are those 2 stocks I mentioned before



7) If you are infact shrewd and have the time to devote to it you can violate all these rules, but remember smarter people than you have failed to acheive investment success.


This is my point that when you are fixed within a family of funds where you cannot buy individual stocks, there isn’t much opportunity for a strategy other than diversity within the family available in the plan.

My question is there a way to investigate this mutual funds families and predict which one will perform better ? For example, in one of my 401K plans I have the options for Fidelity funds only (may be 15 of them), how do I pick the right 2 or 3 funds??

thanks

JAque