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401k

Put however much your company matches (usually 3-6%), into a long term blend (more stocks, less bonds) fund.
 
match 50% on the 1st 6%

Goldman Sachs Short Duration Gov't fund
" Core Fixed income fund
" Core US Equity fund
" Core small cap equity

American Century Balanced fund

MFS Value fund
" mid-cap growth fund
" new discovery fund

Fidelity Adv. Equity growth fund
" Diversified international

T. Rowe Price Retirement income
" retirement 2010
" 2020
" 2030
" 2040
 
Originally posted by: edro
Put 6% into T. Rowe Price Retirement 2040. (if you are going to retire around the year 2040)
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how much should i contribute? just the 6% so i get the full benefirt from my employer matching? should i put all of it into that 1 fund?
 
The 2040 is a good fund like edro says. If you have no debt put as much as you can. Minimum you should put in is the 6% (since you'll get the match). The 2040 diversifies for you, so yes, you can put it all in there for now
 
I put in the max of 10% allowed from my company, they are matching it 100% upto the first 3%.

Total contribution 13% towards my 401K.
 
Originally posted by: Cal166
I put in the max of 10% allowed from my company, they are matching it 100% upto the first 3%.

Total contribution 13% towards my 401K.
Click to expand...
In many cases, you are throwing a ton of money away. Why? Since company sponsored 401Ks usually have massive fees. Thus your extra 7% that you put in is subject to these massive fees. You'd be much better off putting in 3%, getting your companies 3% match, and then investing that remaining 7% in low fee accounts on your own.
 
Originally posted by: pontifex
Originally posted by: edro
Put 6% into T. Rowe Price Retirement 2040. (if you are going to retire around the year 2040)
Click to expand...

how much should i contribute? just the 6% so i get the full benefirt from my employer matching? should i put all of it into that 1 fund?
Click to expand...
How much you contribute is up to you, but you should put in at least the 6% to get the matching.

The information your company sent you should have had a chart of something like 1-, 3-, and 5-year returns on each of the funds and a general idea of the risk associated with each of the funds. Look at the returns and risks and maybe split up your 6% (or whatever) among whatever your feel comfortable.

I have about 30% of my money going into something that's probably similar to the Fidelity diviersified international growth fund you have listed. It's returning over 35% in the 1-3 year terms, but I imagine it's less stable than the T. Rowe Price options you have listed... but I'll be working for at least 25 more years, and I think the risk is worth it for now.

Good luck!
 
Fidelity Diversified Internation has been a stellar performer. Of course, doesn't guarantee future performance, but so far has done very well.
 
Originally posted by: dullard
Originally posted by: Cal166
I put in the max of 10% allowed from my company, they are matching it 100% upto the first 3%.

Total contribution 13% towards my 401K.
Click to expand...
In many cases, you are throwing a ton of money away. Why? Since company sponsored 401Ks usually have massive fees. Thus your extra 7% that you put in is subject to these massive fees. You'd be much better off putting in 3%, getting your companies 3% match, and then investing that remaining 7% in low fee accounts on your own.
Click to expand...

I don't know about most companies, but my company doesn't charge any fees. The funds themselves do, but they charge those fees no matter how you get the investment in their funds. Also, you want to max out your contributions if you can afford it to take full advantage of tax deferment.
 
Originally posted by: DaveSimmons
Originally posted by: PandaBear
how much is your company matching?
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... and what are the fund choices? stock index funds are the safest, bonds and money market are for if you are 50 or older.
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Since the life expectancy of a 50-year-old is about 35 years, it's way to early to get into bonds and money markets. Some of the money, yes, but the vast majority should still be in stocks. Otherwise, inflation will eat you alive.
 
Originally posted by: Midlander
I don't know about most companies, but my company doesn't charge any fees. The funds themselves do, but they charge those fees no matter how you get the investment in their funds. Also, you want to max out your contributions if you can afford it to take full advantage of tax deferment.
Click to expand...
You are talking ~5% fee if you do it through your company vs ~1% fee if you do it yourself in many cases. When your company set up the 401k, it got free advice. And now you pay for that advice with higher fees.

Tax deferment CAN be beneficial (it may hurt in many conceivable cases). You can easily max it out yourself without going through your company's plan.

 
there are no real risky options you have and since you are younger i would go with what they consider 'high risk' as none of them really are. i currently have 40% of my 401k in fid diversified international.
 
Originally posted by: dullard
Originally posted by: Midlander
I don't know about most companies, but my company doesn't charge any fees. The funds themselves do, but they charge those fees no matter how you get the investment in their funds. Also, you want to max out your contributions if you can afford it to take full advantage of tax deferment.
Click to expand...
You are talking ~5% fee if you do it through your company vs ~1% fee if you do it yourself in many cases. When your company set up the 401k, it got free advice. And now you pay for that advice with higher fees.

Tax deferment CAN be beneficial (it may hurt in many conceivable cases). You can easily max it out yourself without going through your company's plan.
Click to expand...

Maybe this is the difference between large and small companies. My company (very large--Fortune 25) set up everything through Fidelity. The annual fees by the funds are exactly the same ones everyone else pays.

I can see where fees would be higher for small companies with much smaller total 401k investments.
 
Originally posted by: Midlander
Maybe this is the difference between large and small companies. My company (very large--Fortune 25) set up everything through Fidelity. The annual fees by the funds are exactly the same ones everyone else pays.
Click to expand...
I did keep specifying "in many cases". There are only a handful of Fortune 25 companies and millions of companies without the financial clout to bargain for cheap investments.

And it isn't the annual fee I'm talking about, it is the up-front or selling fee (which does diminish as the company gets larger, so a Fortune 25 company would be at the cheapest possible level).

I'm just trying to give general advice on a forum (advice that applies to most but not all). Details and specifics of course will change from person to person.
 
Originally posted by: dullard
Originally posted by: Midlander
Maybe this is the difference between large and small companies. My company (very large--Fortune 25) set up everything through Fidelity. The annual fees by the funds are exactly the same ones everyone else pays.
Click to expand...
I did keep specifying "in many cases". There are only a handful of Fortune 25 companies and millions of companies without the financial clout to bargain for cheap investments.

And it isn't the annual fee I'm talking about, it is the up-front or selling fee (which does diminish as the company gets larger, so a Fortune 25 company would be at the cheapest possible level).

I'm just trying to give general advice on a forum (advice that applies to most but not all). Details and specifics of course will change from person to person.
Click to expand...

I've never been with a company, or know any friends who have been with a company, that charges a fee outside of the normal mutual fund fees... and even then we're talking like MICROSCOPIC fees (.25%-.95%). Then again, most of us work at Fortune 500 companies.
 
As far as I know our 401K fees are in line with external Fidelity investment fees although our investment choices are somewhat limited. It may be a good idea to put money in an IRA as well, especially if you want other investment choices, but you can only contribute a limited amount, I believe $5K.
 
how do I find out how much do the funds charge my (my 401k account).
i have been contributing the max ($15k/yr) through my employer......
 
Originally posted by: Azurik
I've never been with a company, or know any friends who have been with a company, that charges a fee outside of the normal mutual fund fees... and even then we're talking like MICROSCOPIC fees (.25%-.95%). Then again, most of us work at Fortune 500 companies.
Click to expand...
Most companies don't list the fees in a way that I can link to easilly. So here is one that I did find in a simple search:
American Funds: Fees for investments <$1,000,000 (total for company) range from 1.5% to 5.75%.

Other companies are similar. Of course if you are in a Fortune 500 company, the total invested is well in excess of $1M. That is not the general case though, many people don't work in companies that large.
 
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