Friday, March 30, 2012

Red Hat 401k Plan PSDS Scan 12-31-2011


The Red Hat 401k Plan options are mostly from Fidelity the Plan trustee. The Balanced portfolio invested less than 5% of Plan assets in any equity option including company stock RHT. The stock has a nice 5yr APR over 12% but is very volatile which reduced the 5yr average return from 25% to 12% as volatility always does. Volatile growth company stock in a 401k is a difficult issue for those nearing retirement. The Balanced portfolio invested only 3.1% of the portfolio in RHT. This 401k has above average investment options that produced only average returns the last 5 years. I have no information on the employee portfolio.

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