Best 401(k) Funds From Vanguard
Kiplinger's Personal Finance|January 2021
Use our guide to the most popular actively managed offerings for retirement accounts.
By Nellie S. Huang
Best 401(k) Funds From Vanguard

MORE THAN 100 MILLION

Americans invest through a workplace retirement savings plan, such as a 401(k). The bull market in stocks that ended its 11 year run in early 2020, only to resume in record time, has helped fatten many 401(k) account balances. On top of that, Americans are saving more. In 2019, they put 7.3% of their annual salary in 401(k) plans, up from 6.4% in 2018, not including any employer match, according to the most recent data available from the Plan Sponsor Council of America, a trade group that represents employers. When you add employer contributions, which average roughly 4% of annual pay, 401(k) investors are hitting at least the low end of the savings goal that many experts recommend—10% to 15% of your annual pay per year.

But how you invest your 401(k) savings can make a difference in your retirement readiness, too. If you had made a $10,000 investment a decade ago in Vanguard Primecap fund, for example, despite recent poor performance, it would be worth nearly $39,000 today. A similar investment in Vanguard Windsor, however, would be worth $26,900. More important, 401(k) investments should align appropriately with your time horizon and tolerance for risk, says Dave Stinnett, head of Vanguard’s strategic retirement consulting department, which helps plan sponsors design good 401(k) programs.

Every year, to help readers make good investment choices in their 401(k), we scrutinize the country’s 100 most-popular mutual funds in workplace retirement savings plans, a list that comes courtesy of BrightScope, a financial data firm that rates 401(k) plans.

Bu hikaye Kiplinger's Personal Finance dergisinin January 2021 sayısından alınmıştır.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

Bu hikaye Kiplinger's Personal Finance dergisinin January 2021 sayısından alınmıştır.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

KIPLINGER'S PERSONAL FINANCE DERGISINDEN DAHA FAZLA HIKAYETümünü görüntüle
FREE HELP FOR COLLEGEBOUND STUDENTS
Kiplinger's Personal Finance

FREE HELP FOR COLLEGEBOUND STUDENTS

This program’s mentors assist applicants as they fill out the FAFSA, write essays and more.

time-read
2 dak  |
December 2024
WHAT YOU SHOULD KNOW ABOUT SPOUSAL IRAS
Kiplinger's Personal Finance

WHAT YOU SHOULD KNOW ABOUT SPOUSAL IRAS

You typically need earned income to contribute to an individual retirement account, but a spousal IRA provides an important exception to this rule.

time-read
2 dak  |
December 2024
SELLING SHARES? HERE'S HOW TO MINIMIZE TAXES ON YOUR GAINS
Kiplinger's Personal Finance

SELLING SHARES? HERE'S HOW TO MINIMIZE TAXES ON YOUR GAINS

ET'S say you've been regularly buying shares in a booming tech company over the past few years, but now you want to start taking some of those profits, perhaps to rebalance your portfolio.

time-read
5 dak  |
December 2024
Strategies for Novice Investors
Kiplinger's Personal Finance

Strategies for Novice Investors

AS part of a lifes kills program for young, single mothers, I was asked to teach a class on how to get on top of your finances.

time-read
3 dak  |
December 2024
ANSWERS TO YOUR 529 PLAN QUESTIONS
Kiplinger's Personal Finance

ANSWERS TO YOUR 529 PLAN QUESTIONS

Thanks to recent policy changes, families have more options for what to do with money sitting in these tax-advantaged accounts.

time-read
6 dak  |
December 2024
Rate-Cut Winners and Losers
Kiplinger's Personal Finance

Rate-Cut Winners and Losers

NOW that the Federal Reserve has cracked the interest rate ice, the next development will be to separate winners from losers.

time-read
2 dak  |
December 2024
SHOULD YOU BUY THESE RED-HOT FUNDS?
Kiplinger's Personal Finance

SHOULD YOU BUY THESE RED-HOT FUNDS?

Covered-call ETFs are popular but come with plenty of caveats.

time-read
6 dak  |
December 2024
DIVIDEND STOCKS ARE READY TO REBOUND
Kiplinger's Personal Finance

DIVIDEND STOCKS ARE READY TO REBOUND

Our favorite dividend payers are poised to benefit as falling interest rates lure investors back.

time-read
10+ dak  |
December 2024
IS A 55+ COMMUNITY RIGHT FOR YOU?
Kiplinger's Personal Finance

IS A 55+ COMMUNITY RIGHT FOR YOU?

These age-restricted developments appeal to older adults seeking abundant amenities and an active lifestyle.

time-read
8 dak  |
December 2024
AT LONG LAST, RATES ARE DROPPING
Kiplinger's Personal Finance

AT LONG LAST, RATES ARE DROPPING

Consider these portfolio moves now that the Federal Reserve has cut its benchmark interest rate.

time-read
4 dak  |
December 2024