Wednesday, January 16, 2008

Redirected Future 401k Contributions

I have my 401k invested in 3 different mutual funds. I have only been contributing to a 401k for about 3 months but decided that one of the funds was not what I wanted to be in. When looking at that funds past returns I noticed it hasn't really done well for the past 10 years. There are better options out there. I decided to stop contributing to this fund and start contributing to a fund called Dividend Income. This fund returned 17.09% for 2007 and has averaged a return of 15.63% since the funds inception.

I chose this new fund not only because of the average returns but because of the strategy of dividend investing. I recently read a book about the powers of dividend investing and feel it is a good strategy to imploy. I don't have enough money to put the strategy to work for myself so I figure this is the next best alternative.

The other two funds I contribute to did well for 2007 and in the past. I will continue to contribute to them.

We recieved an email at work today saying the 401k quarterly statements were mailed out two days ago so I will post a review once my statement is recieved.

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