Frustration with the 401k, and 403b

History shows us that longterm investment in capital markets leads to excellent gains. With that in mind an inumerable amount of vehicles have arisen to help people to get a piece of the pie. With the increase in retirement accounts over the past quarter century there is more and more money being managed by the "professionals". The way this money gets into their grasps disgusts me.

If you have a retirement account through your work you have probably noticed that there is quite a discrepancy between the number of investment options available when you open the finance section as compared to the investment options offered by your company. In my 403b at work I have less than 2 dozen funds from which I can choose to place my retirement funds.* If it weren't for the company match I would forgo the whole thing. Contrary to popular belief I do not believe that tax savings is the do all end all for my future.

I currently have all my 403b in two funds. I have the majority of that money in the Vanguard 500 index fund (very different than an actively managed fund) and the rest is in an international fund for the sheer sake of diversification, though I may liquidate that fund in time.

At least my account offers the Vanguard fund otherwise I'd be throwing darts. I don't have the faintest idea how to evaluate a mutual fund. Mutual funds own hundreds to thousands of individual stocks. They all have their stated goals, but in the end it all boils down to maximizing profits while maintaining principle. How do I compare one to another? Each fund touts (or hides as it were) it's return over the past 1, 5, 10, and 15 years for those who have been around that long, but they all seem to be written on paper with the watermark: "Past performance does not guarantee future results". Why would I put so much money into a fund that is managed by a person or persons whose methods of investment are foreign to me. If I want to invest in a man I'll be putting my money in Berkshire (in fact I do have a significant portion of my non-tax-deferred account in Berkshire).

For the time being I will stick with my Vanguard non-managed retirement account and put the rest of my money in my Zecco account where I can buy Nike and Harley (currently trading at 5 times earnings) as I please after evaluating the balance sheet, earnings and current price. I may even read up on the CEO and majority stock owners if it fits in my schedule.

*I do have a personal choice options that apparently allows me to buy stocks and funds not offered in my plan, but as of this writing I have not been able to talk with anyone who can elaborate on the fees and procedures to do so.