Changed 401k Investment Elections

November 29th, 2006 Living Off Dividends Posted in personal finance | 4 Comments »

Today I changed the funds selection in my previous employer’s 401k. I was investing about 30% in Global funds, 15% in financial funds, 30% in world wide health, 10% tech, and the remaining 15% in small, mid and large cap funds. I moved the 15% in financial over to global funds.

In my current job, where I’ve boosted the 401k through a high contribution[currently 30% of income which I'll change from the 1st of Jan] I changed it to 60% global and international funds, 10% value income funds and the rest a mix of small, mid & large-cap funds.

Its not that I don’t have much faith in the US economy[which I don't], but rather that I feel even if foreign stocks will do slightly better. I do feel that the US dollar will drop another 20-30% over the next few years which will boost the returns on global funds.

If I had to choose US companies, I’d stick to multi-nationals like Unilever, P&G and Walmart which have a large amount of foreign income and pay out dividends. Can’t see myself investing in stocks that don’t pay out dividends. I tried that once in 2000 and lost my shirt!

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