401k
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- doggydoggdog
Any tips?
I have an opportunity to contribute through work and they match up to a certain percentage.
- _niko2
don't bother, we'll all be dead soon, have some fun while you're here.
:)
- monNom0
Take the money!
But be aware that you'll probably have a limited selection of mutual funds to choose from with extremely shitty management fees. You are getting free money, so don't let that bother you too much. Don't contribute to employer sponsored accounts more than they will match. Instead, set up your own self-directed account and buy low-cost ETFs like vanguard. This gets rid of the 2-3% per year that gets chiseled off by mutual fund company's management fees. That small percentage adds up over time, especially on down years.
A good strategy is 60% equities, 40% bonds and other 'safe' stuff. Usually when equities go down, bonds go up. Then you sell some bonds and buy some equities to get back to 60/40, maybe once a year. This might just be 2 funds; IE an equities(stocks) fund that maybe tracks the S&P, and a bond fund that combines government and corporate bonds.
Finally: they are all crooks.
- bonds = junk.shapesalad
- +1 This is basically standard advice and is perfect for long term, sustainable investing.nb
- Key point: Let’s say they match up to $6000, if you don’t take the match you’re throwing away a free $6000nb
- 40% bonds is pretty damn conservative. Unless you are nearing retirement, I wouldn't keep anywhere near that in bonds, especially w the returns recently.formed
- Put it in an S&P ETF/mutual fund. Sit back and check again in a decade.formed
- the 40% bond strategy is to have some money to buy when stocks are cheap. And to take some gains off the table in case you need to cash out in a down mktmonNom