Share this Page URL

Chapter 12. Looking for Mr. Goodfund > Understanding the Funds in Your 401(k) P... - Pg. 118

Looking for Mr. Goodfund 118 Understanding the Funds in Your 401(k) Plan Step one in our discovery process is to separate the funds in your 401(k) plan into the primary investment categories of safety, income, and growth. You do this by reading the various prospec- tuses of the funds in your plan. If you cannot find a prospectus or your funds do not have prospec- tuses (sometimes funds that are not sold to the public do not have prospectuses), look for the fund's trust agreement. If you cannot find either one, make like Jack Webb from the TV series Dragnet and ask the plan administrator for "just the facts"--fund fact sheets, that is. For What It's Worth Unless you're an insomniac, prospectuses do not make for great reading. There's lots of great stuff in them, but it's tough wading through the technical lingo to find what you're looking for. If you do not want to read the prospectus, ask for something called a fund fact sheet. This one-page, two-sided, very detailed document summarizes almost everything you need to know about the fund. Almost all mutual funds provide fund fact sheets. But, like everything else in life, some fact sheets are great, filled with color and easy to read, while others are not much more than advertisements for the fund. You be the judge. Find 'em and read 'em. You'll be glad you did.