Let's talk 401K's.....

[Common]

My employer offers various options, not really sure what to pick out. I will put no more than 5k$ a year into it and would like to know which is the best option out there.

On the plan of offers, I see mostly different Fidelity investment options, few Morgan Stanley and two Invesco....


What do you have?

 

[03Sssnake]

Morgan Stanley has a great rating, quite a bit better than the others you mentioned. I had a 401K when I was at Dell, believe it was managed by Hewitt, they did right by me. The company I currently work at is new and planning on 401K eventually. How much of your contribution will your company match?

BrightScope | 401k Plan Ratings, Financial Advisor Pages, Better Data for Financial Decisions

 

[moddestmike]

My employer offers various options, not really sure what to pick out. I will put no more than 5k$ a year into it and would like to know which is the best option out there.

On the plan of offers, I see mostly different Fidelity investment options, few Morgan Stanley and two Invesco....


What do you have?

Honestly, you want to call your companies rep. They should be readily available to consult you depending on how aggressive you want to be with allocations. Alternatively you could research each one once signed up. Fidelity had a really good breakdown and description of each investment option for members of their services. Also look at past history/performance.

Also, be sure and contribute the maximum being that your company should match up to 100% of the first 6% contributed. Mine also matches 50% from %6-8%.

 

[bam]

I have a 100% of 6% match plan through Fidelity. They've been very helpful answering my contribution/investment question.

 

[Common]

Thanks for the input guys, my company will only put in a thousand towards it every year. As great it would be to have them match it, I am more interested in saving and the fact that its pre tax money.

 

[65fastback2+2]

if you're under 30, you can go with one of the lower risk options, 30-40 go with a medium risk, and over 40 go higher risk

 

[verbal]

if you're under 30, you can go with one of the lower risk options, 30-40 go with a medium risk, and over 40 go higher risk

Don't you mean the other way around?

I have my 401K through Vanguard. They have age based funds that gradually change as you progress to retirement. Their performance has never been very good though.

 

[crew_dawg16]

I pay something like 0.3% to have it managed for me by Hewitt.

 

[Matts00GT]

if you're under 30, you can go with one of the lower risk options, 30-40 go with a medium risk, and over 40 go higher risk

You're backwards. You take risks in your younger years as you'll have enough time left to work and recover vs. being older and being nearer to retirement.

 

[BrunotheBoxer]

if you're under 30, you can go with one of the lower risk options, 30-40 go with a medium risk, and over 40 go higher risk

This post is exactly why I go on car forums for financial advice. :rolling:

 

[PureStang]

I have my 401K through Vanguard. They have age based funds that gradually change as you progress to retirement. Their performance has never been very good though.

This is who i have my 401k and IRA through. Haven't really looked into anyone else only because my mom and my aunt work for vanguard.

 

[61mmstang94]

if you're under 30, you can go with one of the lower risk options, 30-40 go with a medium risk, and over 40 go higher risk

Gotta love Internet forum advice.

Honestly there could be some good advice, too. But the best advice was to talk about this to your company.

 

[VenomousDSG]

if you're under 30, you can go with one of the lower risk options, 30-40 go with a medium risk, and over 40 go higher risk

LMFAO, because people really want to take risks with their life savings when they're older and need it that money! Makes sense.

 

[Common]

Gotta love Internet forum advice.

Honestly there could be some good advice, too. But the best advice was to talk about this to your company.

I work with people that are at least 10-15 years older, so asking coworkers would have felt little awkward. I was hoping crowd here is mostly in mid 20s like me and has more advice.

LMFAO, because people really want to take risks with their life savings when they're older and need it that money! Makes sense.

I thought he was being funny and throwing me a curveball on that one....

 

[Ass Eyes]

You need to provide way more info in order for us to provide meaningful help. What's your age? Risk tolerance? Retirement age? Income? Other investments?

 

[Njc0las]

if you're under 30, you can go with one of the lower risk options, 30-40 go with a medium risk, and over 40 go higher risk

wtf??

i have a 100% of 6% match plan through fidelity. They've been very helpful answering my contribution/investment question.

+1

 

[PowerWheels]

You need to provide way more info in order for us to provide meaningful help. What's your age? Risk tolerance? Retirement age? Income? Other investments?

This guys right, you may not want to post it here, but in order to give you a decent answer this is a minimum.

I'd do some reading on asset allocation if I where you.

Check out this file from http://www.merriman.com/bestofmerriman/finetuning/

 

[wurd2]

if you're under 30, you can go with one of the lower risk options, 30-40 go with a medium risk, and over 40 go higher risk

:beer:

.

 

[Common]

Age 27, I can afford to put 5k away on this comfortably. No debt, can take some risk. Have other income as well. My income can vary and has been, from 50's as high as 80s...

My concern or question is, where is a safest bet to stash away 5k a year on a 401k plan if you are 27 and can take medium type risk?

I also have another retirement plan(real estate rental income), as well as whole life insurance.

 

[Hmbre97]

It's all going to depend on your company and the funds available. My employer uses Vanguard for our 401k's and we only have about 20-25 different funds available to invest in. I believe there is a way to convert over to a Roth IRA and then you can invest that as you see fit but I'm not a financial guy by any means and may be way off base.

My current 401k has some good performing funds from Janus which have been pretty solid performers for me. It's nice getting that 6% match also.