Bucky and other 401K playas...

[LJ3]

If you had a small 401k that you started with a new job, which of these funds would you choose to try and get a really good boost for 10 years? these are all offered thru Fidelity

2992

[Hombre]

I don't see Bitcoin as an option!

[Buckrub]

I'm going to assume you are 45 y/o. Maybe close. That puts you retiring at year 2035 or so.

So, just put your money for now in Freedom 2035 fund.....and KEEP putting money in it every paycheck. If later you want to become a more educated investor, you can add some other funds based on what the market is doing at that time. But that one will be as safe as you can get (nothing is SAFE) and adjust your balance automatically over the years.

When you are 59.5 y/o, immediately convert (no cost for this) 100% of your 401k to an IRA, or as much as they'll let you. Keep putting money into the same IRA, and when your account is big enough, move it over to the IRA (same firm). IRA has 5,000 choices, your 401k has about 20. By then you'll be a smarter investor.

[BarryBobPosthole]

I've had good luck with the Fidelity 2020 products, which depending on what company you work for might be labeled 'ABC2020'. I think it prolly pretty close to the same mix as the Its not a world beater but its been consistent. And Bucky gives good advice: put the max your company will match and fuggetaboutit.

BKB

[Buckrub]

If you can POSSIBLY afford it, in addition to your 401k, also go buy a separate ROTH IRA in addition to the 401k. Figure out what the max you can put in it. You can then decide what fund to invest in, but that same fund is available. They are called Target Funds. They Target your retirement year, or close, and adjust more conservative as you get older. Not a panacea, but good investment if you are not savvy on where to put it.

Then when you are 59.5, you will already have an IRA ready to roll your 401k into. You can put both of them in the SAME fund in fact. Or into almost anything.

A man that is 30 years old, and who invests 10-15% of his income into an IRA, and invests even semi-wisely............will someday be able to retire at 50-55 years old and be comfortable. But so few do it. I didn't. Now that I know how to do it, it's too late.

[Hombre]

LJ Didn't you recently get a new job? I think you can move your old 401 into a Roth now and have more options......Bucky would probably know whether that is a good move or whether you can..but I'm think it is a yes to both.

[jb]

Can't help you on any of your choices, mine are in different funds, but what I can tell you is you're smart to put away as much as you can that will be matched by your employer.
I started to invest back when I was 25, around here the education system allowed you to invest a certain amount of your income in TSA's, the money you invested was taken out of your pay before taxes and you were taxed on what was left, schools never matched your investment but the before tax thing worked out pretty good.
So after 44 years of modest growth and keeping my hands off it, it has grown nicely.
Now that I'm nearing 70 I'm forced to withdraw a certain % each year and start to pay taxes on the amount, but because we don't need the money it'll go right back into some sort of investment. I'll let my adviser figure that one out.
Bottom line is put as much as you can afford into some good funds, mix it between different funds for growth and as you age switch to growth and income. You'll be happy you did.

[Arty]

LJ, you might want to check with your HR dept - or person, or whoever an see if your company provides any 3rd party investment counseling/advice.
My company just started offering for its employees (free for a year, paid by the company) a company called Financial Engines. You sign up with them, give them access to your 401k, tell them your target retirement date, and they invest it from there.
I signed up for it, and I guess they are doing ok so far. They move the funds ALOT. Prolly once a month or every 45 days. Not all of it, but parts of it.
So far this calender year, my growth is outpacing everyone else at work that I talk to that DIDNT sign up for it.

At the end of the year when it is no longer free, the fee is maxed out at like $25 a month or something, depending on the balance of your 401k, and there is no obligation/ fee to stop using them.

In summary, I can't answer your question. ;)

[Buckrub]

Paying someone to manage your investments is usually 2% a year. That's a HUGE cost!! If you need it, buy it. But most of you are too smart to need it long term. It's not rocket science or I'd be broke.

For 1%, I'll guarantee you 10%. Try that with any bank you know.

[LJ3]

Sorry, I shoulda given more info. I already have a decent chunk in my old 401k with mass mutual. I may or may not do something with that. I'm considering this smaller one with the new job something to "play" with to see if I can take more risk and make in to something more quickly.

I haven't thought about moving my old 401k to something else but I don't know squat about that. Guess I should consult a professional for that move.

[jb]

Bucky, there is a difference between an Advisor and a Manager. Advisor helps me make decisions based on his knowledge, he still lets me make the choices, he collects his fees from the different funds in sort of a commission, a Manager charges a certain fee to manage your funds, in some cases his knowledge of what makes money and when to move your investment around will offset his fees vs. just leaving your money alone in a conservative fund.
We use an Advisor for most of our funds, wife is using a Manager for one of her funds and to be honest, he's made more money for her than we've made through our Advisor
I don't even dream of doing it myself, I don't have the time nor do I want to do the research to mess with our investment, the same way I don't want to be my own doctor or dentist either, even if it would save me a few bucks.

[Hombre]

I'm interested in someone managing my money. I started when I was around 20 and put somewhere around 15% in yearly. Quite frankly its gotten to the point where I don't feel comfortable with my knowledge, and its less about making more than it is about protecting against the down swings. So, any advice on the financial planner part is appreciated.

[BarryBobPosthole]

Most banks offer financial advisers as a service, Hombre. If you like your bank you might just listen to them to see if you like what they have to offer. You can tell if they're just pimping their products to make commission or if they really have your interest in mind. If they're smart and want you as a long term customer they'll offer some pretty sound advice and then its up to you if you want to take it or not. I prefer that, honestly, to the financial 'manager' type of service.

BKB

[Arty]

One thing I like about the service I signed up for through work. The offered free advice on my wife's IRA.
I sent them what we were invested in, and they sent back a 3 page plan (based on target retirent age) for free.
We haven't had time to double check their research on the funds, but they also sent a forecasted growth plan based on current invested vs their suggested. Based on that.... We need to change it, and fast!

So far I'm really happy having an expert that actually knows what they are doing, do the work for me.

And it's not on commission, so I'm not worried about a wild card trying to make a pile of money while I drown.