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How to Apply The 401(k) FormulaTM to Your 401(k)


As you have seen, The 401(k) FormulaTM uses four investment indexes as proxies for mutual funds. Following the formula requires that you select the appropriate funds from your 401(k) fund menu as substitutes for the investment indexes. Here are some guidelines:

Fixed Income                    
The 401(k) FormulaTM
 Your 401(k)
Barclays Capital Aggregate Bond Index A conservative bond fund. No stable value funds, no high-yield funds allowed.
 
Stocks                         
The 401(k) FormulaTM
 Your 401(k)
S&P 500 Index S&P 500 Index fund, large-cap growth fund, Blue Chip fund.
 
S&P MidCap 400 Index A small-cap or mid-cap fund.
 
NASDAQ 100 An aggressive growth fund, a technology fund or an emerging markets fund will work.

When you subscribe, we will go over these issues in your first consultation and identify which funds you should use to follow The 401(k) FormulaTM.