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Is it worth having a guided portfolio services w my 401k??


I just signed up for my company's 401k program and the agent adviced me to go ahead and set-up a guided portfolio service that would be done by morningstar. The fee is .60%, is this worth it? I get a 10 day trial and after which I could cancel it and do it on my own. The services state it will do the following: Wealth forecasting, asset allocation, investment selection and asset management. Thanks!


okay, I'm 33 years old and here is the list of fund:

AIM small cap growth fund

AllianceBernstein International Value fund

American Century Gov. Money Market fund

American Century Inflation Adj. Bond

American century ultra

American Beacon small cap

Calvert Social investment equity

DWS Health care

Dreyfus midcap index

dreyfus small cap stock index

JP morgan capital growth

janus adviser forty

Janus growth and income

Munder balanced

Mutual shares

Oppenheimer capital appreciation

pioneer equity income

putnam global equity

putnam international

sunamerica focused balanced strategy portfolio

sunamerica focused equity strategy portfolio

TRowe price science and tech

vanguard 500 index

vanguard total bond market index

wells fargo advantage govt. securities

There you go. Should I go for aggressive or moderate? thanks!

6 Answers

  • 1 decade ago
    Favorite Answer

    I've been doing my own for 25 years, now. One thing you DON'T do with a 401K is day-trade. Your 401k investments are very long-term. For my portfolio, sometimes it is a couple of years between changes in investments. For example, I moved stock funds to bond funds right after the hi-tech stock bust around 2000 (way before the Dow hit it's low in the 7000s, and when that all settled out 2 years later, I moved back to stock funds.

    Just get some high growth funds with good long-term track records and you should be fine. If you can maintain 10-13% over the long haul you are doing great. A money manager might be able to get you another 1% on top of that, but if it cost's you 0.6% is it really worth the extra 0.4%?


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  • Erika
    Lv 4
    3 years ago

    sure, and as a lot as you may have the funds for. Why? because it lowers the taxes you're paying now. So, a 2% contribution will easily bring about a below 2% relief on your take-homestead. In some circumstances, it might nicely be a threat to fantastically a lot enhance your take-homestead by using putting funds right into a 401(ok). Now, there are options, including a Roth IRA or classic IRA. it really is better relies upon on your situation, yet they're options in the adventure that your organization's 401(ok) application has too restricted funding options. yet when this technique promises sturdy options that be perfect for you, then do not trouble about the shortcoming of adventure. concentration on the very shown reality that you're putting funds away and that you're deferring taxes (with any luck to a time once you'd be at a decrease fee). rather, the excuse of no longer contributing because there is not any adventure is only undeniable stupid. It makes no experience, except they could communicate about a better functional option. And, no, no longer having a retirement fund isn't a sturdy determination.

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  • 1 decade ago

    Not at all worth it. How many options do they give you? If you do the %s right up front no need to pay that much every year. Would add up over time. Tell me your age via answers + the options and would be glad to give solid %s for nothing. Have done it for many others.

    Source(s): Degree in Finance + 27 yrs investing
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  • 1 decade ago

    Buy yourself the book "Common Sense on Mutual Funds" by John Bogle. It will explain everything you need to know about mutual funds and how small fees (.60%) will cut into YOUR profits.

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  • kl??
    Lv 5
    1 decade ago

    Morningstar is good, but I don't think it's something worth paying for on your part. If you want to see any Morningstar reports the agent should run them for you. Seems a little shady to me that someone wants you to pay for it.

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  • Anonymous
    1 decade ago


    I will help you for FREE.

    I am a Portfolio Manager.

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