My 401k is Very Diversified

November 22, 2011 by Thomas Mullooly

Or is it?

So many times I’ll meet a new client and they will tell me, “Even though my retirement account at work is totally diversified, I still lost money. Why?”

Was it REALLY diversified?

In this video, I show you how there is so much over-lap among large cap mutual funds in 401k accounts. It’s pretty sobering when I show clients how many of the same names appear over and over in MOST of their large cap funds. Some of the investments mentioned here include the Vanguard Institutional Index fund (VIIIX), the T Rowe Price Equity Income fund (PREIX), the Fidelity magellan fund (FMAGX), the Eaton Vance large Cap fund (EILVX).

Now, any time we are mentioning specific investments in a post or video, I think it is important to mention the following:
Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment or investment strategy will be profitable or equal to past performance levels.

All investment strategies have the potential for profit or loss. Changes in investment strategies, contributions, or withdrawals may materially alter the performance of your portfolio. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for an investor’s portfolio.

I mean, that just makes sense, right? Oh, and something else:

If you are relying on a blog post for specific investment advice, you are making a huge mistake. Please speak with an investment adviser before making ANY investment decisions.
If you do not have an investment adviser, we encourage you to contact Mullooly Asset Management at 732-223-9000, or through our website. Under no circumstances should the content discussed here to be considered specific investment advice.

Finally, you also need to know that none of the names mentioned in this video are (or have been) specific recommendations of Mullooly Asset Management. The investments mentioned in this video (and all videos) were suggested by clients, who asked me to analyze the chart for a particular investment. if you would like us to analyze an investment for you, feel free to contact us.

About Thomas Mullooly

Thomas Mullooly is owner and founder of Mullooly Asset Management, Inc. In 2002 Tom opened Mullooly Asset Management, a fee-only investment advisory firm. As an investment advisor, and not a broker, Tom works strictly for his clients. With the help of point and figure charting, Tom builds a realistic game plan for clients.