AMERICAN FUNDS ARE POPULAR CHOICES for retirement savers. Eight of the firm’s stock funds and six of its target-date portfolios land among the 100 most popular 401(k) funds, a list compiled by BrightScope, a financial data firm that rates workplace retirement plans. In this article, the fourth in a series, we analyze those offerings. (For our view on Vanguard funds, see “Best 401(k) Funds From Vanguard,” Jan.; for our take on Fidelity funds, see “Best 401(k) Funds From Fidelity,” Feb.; and see our T. Rowe Price roundup, “Best 401(k) Funds From T. Rowe Price,” in the March issue.)
The firm behind American Funds, Capital Group, needs some introduction because it has a particular approach. Each fund is run by multiple managers, from as few as two to more than a dozen. But each individual runs his or her own slice of the fund’s assets independently. And each one owns a personal chunk of shares in the fund, in keeping with the firm’s culture.
Below, we review the American Funds Target Date Retirement funds as a group, and eight actively managed funds individually, and rate them “buy,” “sell” or “hold.” All data, including symbols, refer to the share class that’s most accessible to the average investor, in this case Class A. Your 401(k) plan may offer an institutional share class, which may charge a lower expense ratio. All returns are as of February 5.
AMERICAN FUNDS TARGET-DATE RETIREMENT FUNDS: BUY
These target-date funds are fine choices for investors who want an expert to handle their retirement investments. You choose the fund with the year that’s closest to when you plan to retire; American Funds does the rest.
This story is from the April 2021 edition of Kiplinger's Personal Finance.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the April 2021 edition of Kiplinger's Personal Finance.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
A SOLID YEAR FOR THE KIPLINGER 25
All but one of our favorite actively managed, no-load mutual funds gained ground as markets recovered.
YOUR VACATION HOME COULD PROVIDE TAX-FREE INCOME
If you plan to rent out your vacation home, it's important to understand how your proceeds will be taxed.
IT'S NOT YOUR IMAGINATION: YOUR CEREAL BOX IS SHRINKING
To avoid raising prices, some manufacturers are reducing the size of common grocery items. Here’s how to fight back.
SHOULD YOU WORRY ABOUT BEING LAID OFF? IT DEPENDS ON YOUR INDUSTRY
Downsizing has hit certain sectors. But cutbacks may be slowing, and some companies are expanding.
How identity thieves are exploiting your trust
Con artists themselves are disguising as well-known brands to steal your money and personal information.
CUT THE COST OF YOUR WIRELESS BILL
AT&T, T-Mobile and Verizon dominate the market, but smaller outfits offer similar network coverage at lower prices.
MAKING HOME ENERGY MORE AFFORDABLE
Households in need can get energy-efficiency upgrades, help with utility bills and more from this nonprofit.
A HEAD START FOR SAVERS
The Saver's Credit is designed to help low- and middleincome taxpayers contribute to a retirement account.
Say I Love You With a Money Date
To nurture a lasting bond with your partner, meet regularly to talk about money.
Plan for Your Own Elder Care
AFTER I wrote a series of columns in 2022 about elder care planning for family members, I received a number of responses like this one: “What about married couples who have no children or whose family members don’t live nearby?” wrote one reader. “Or a single individual with no close relatives? How should these people plan for their own elder care?”
