How do you choose a 401k plan?

[zylander]

My girlfriends company is offering her a 401k plan and she asked me to do some research for her as she knows nothing about it, only problem is I know about the same. She was given a list of websites for various funds;

Alger Fund
American Heritage Fund
Victory Funds
Allianz Funds
Mainstay/Cap Funds
Blackrock Investor Services

For the average person who knows nothing about stocks or investments, how do you choose the right 401k plan and how do you determine how much to put into the plan each pay check?

Also, what kind of securities do 401k plans have?

 

[sactoking]

Usually, your employer chooses the 401(k) provider and all you can do is choose among a very limited selection of funds that provider offers.

 

[Greenman]

Figure which one lost the least over the last two years.

 

[spidey07]

If she calls up her plan provider they will be more than happy to send her tons of planning information explaining everything and best practices.

 

[Special K]

Go to the Bogleheads forum. Start by reading the introduction post here:

link

After that, you should read 1 or more of the books mentioned in that list, such as The Boglehead's Guide to Investing.

Once you have a basic understanding of investing, post the specifics of your plan in the forum, and the people there would be more than happy to help.

 

[oiprocs]

In Russia, 401k plan chooses you!