Someone school me on roth IRAs though
401k
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this is what i been confused about. so i can choose how to specifically invest my 401k money? as in stocks n shyt? i need to learn this stuff but i havent had time since im studying up on some other work related stuff to try n get a promotion
They have different portfolios, the younger you are the more agressive portfolio you pick as youd have time to recoup any potentially loss and they have the highest ROI, someone who is older wouldnt benefit as due to the risk they may not recoup losses before they retire.
Is it company-sponsored? Who are you with (Fidelity, Vanguard, Merill-Lynch, etc.). My company is with Fidelity, and it's self-directed, although you can sign up for a managed account with them. I get a list of mutual funds, decide whether I want to be conservative, balanced or go for aggressive growth, and it gives me a mix of stock/bond options to choose from.
The higher the percentage of stocks in your portfolio, the higher the risk.
I don't think you can invest in individual stocks in a 401K unless somethin' has changed.
You have a choice of mutual funds, bonds & maybe other safe stuff. The mutual funds is where most of your choices are. Some focus on large, mid or small cap indexes. Some focus on growth, core or value. Some are similar to the S&P 500 index. What mutual funds are available depend on your plan, but most have similar options, just different brands of funds.
Bonds are typically limited to short & long term.
How much you have in mutal funds (& what type) vs bonds determines your risk & money makin' potential. The more you have in stocks via mutual funds, the higher the risk/reward.
Aren't there annuities you can take out on behalf of Whole Life policies?
I'm probably confusing several different things here but I remember studying something about that when I was getting my insurance license.
i got fidelity. i chose balanced because i wasnt sure what i was looking at but i should probably change it to aggressive
Yeah I know what you are saying, and there is a LOT that goes into that. I don't assume to be the most knowledgeable yet, although there better options then 401 k but if you are being matched by your company by all means continue, it's free money. It's important to have a few diversified options to invest money in, even if stock market related.
read this article early this morning and can vouch for the reputation and high fiduciary quality of a couple of companies therein.
as always, stay on top of your money and do you own studying and due diligence.
Vanguard tops mutual fund survey with $291bn in new business
David Oakley, Investment Correspondent
Tim Buckley, chief investment officer at Vanguard
Vanguard was the world’s most popular investment group last year as it attracted more new business than any other asset manager in the $29tn global mutual fund industry.
In contrast, Pimco languished at the bottom of the table as the Californian asset manager suffered the worst performance in 2014, in terms of outflows, of the 3,164 groups tracked by Morningstar, the data provider.
Pimco was knocked as investors lost confidence in its high-profile flagship bond fund. It was also hit by the sudden departure of co-founder Bill Gross, who quit in September to take up a role at Janus Capital.
Vanguard enjoyed $291bn in new business last year, a fifth of the industry’s net inflows, while Pimco suffered outflows of $175bn, by far the worst performance.
Vanguard’s popularity and Pimco’s problems highlight the growing popularity of passive investment funds, which track an index and charge much lower fees than active investment funds.
Vanguard has $2tn in tracker funds and $450bn in global exchange traded funds, making it one of the world’s biggest providers of these products. Pimco is an active manager, which aims to select investments that outperform the broader market.
Other big providers of passive investments, BlackRock and State Street Global Advisors, also attracted billions of dollars in new business last year. BlackRock enjoyed $178bn in estimated net inflows, the second-best performer, and State Street attracted $42bn in new business, the fifth-best performer in terms of flows in the mutual fund market, which includes open-end funds, money market funds and ETFs.
Tim Buckley, chief investment officer at Vanguard, said: “The success of our business is down to cutting our fees to the bone. Active fund managers find it difficult to compete with us because they charge high fees, which is why many underperform the market.”
Other big active managers, Aberdeen Asset Management, Europe’s biggest independent investment group, and Fidelity saw big outflows. Aberdeen recorded the second-worst performance with outflows of $13.5bn, while Fidelity recorded the third-worst with outflows of $11.4bn.
http://www.ft.com/intl/cms/s/0/55b87a46-be96-11e4-a341-00144feab7de.html#axzz3TFqogSLw
as always, stay on top of your money and do you own studying and due diligence.
Vanguard tops mutual fund survey with $291bn in new business
David Oakley, Investment Correspondent
Tim Buckley, chief investment officer at Vanguard
Vanguard was the world’s most popular investment group last year as it attracted more new business than any other asset manager in the $29tn global mutual fund industry.
In contrast, Pimco languished at the bottom of the table as the Californian asset manager suffered the worst performance in 2014, in terms of outflows, of the 3,164 groups tracked by Morningstar, the data provider.
Pimco was knocked as investors lost confidence in its high-profile flagship bond fund. It was also hit by the sudden departure of co-founder Bill Gross, who quit in September to take up a role at Janus Capital.
Vanguard enjoyed $291bn in new business last year, a fifth of the industry’s net inflows, while Pimco suffered outflows of $175bn, by far the worst performance.
Vanguard’s popularity and Pimco’s problems highlight the growing popularity of passive investment funds, which track an index and charge much lower fees than active investment funds.
Vanguard has $2tn in tracker funds and $450bn in global exchange traded funds, making it one of the world’s biggest providers of these products. Pimco is an active manager, which aims to select investments that outperform the broader market.
Other big providers of passive investments, BlackRock and State Street Global Advisors, also attracted billions of dollars in new business last year. BlackRock enjoyed $178bn in estimated net inflows, the second-best performer, and State Street attracted $42bn in new business, the fifth-best performer in terms of flows in the mutual fund market, which includes open-end funds, money market funds and ETFs.
Tim Buckley, chief investment officer at Vanguard, said: “The success of our business is down to cutting our fees to the bone. Active fund managers find it difficult to compete with us because they charge high fees, which is why many underperform the market.”
Other big active managers, Aberdeen Asset Management, Europe’s biggest independent investment group, and Fidelity saw big outflows. Aberdeen recorded the second-worst performance with outflows of $13.5bn, while Fidelity recorded the third-worst with outflows of $11.4bn.
http://www.ft.com/intl/cms/s/0/55b87a46-be96-11e4-a341-00144feab7de.html#axzz3TFqogSLw
dora_da_destroyer
Master Baker
lol, same here. my other jobs had no 401k match so i never had one before.i only have 2 years at this job so mine is still
this thread reminds me i need to re-balance my portfolio, they have one fund i wanted to invest in, but didn't. i saw the returns last year, i missed out...
i also need to open an IRA, but i'm just not that meticulous to curate my own portfolio...i definitely need someone who's better with the whole investing piece to compliment me.
lol, same here. my other jobs had no 401k match so i never had one before.
this thread reminds me i need to re-balance my portfolio, they have one fund i wanted to invest in, but didn't. i saw the returns last year, i missed out...
i also need to open an IRA, but i'm just not that meticulous to curate my own portfolio...i definitely need someone who's better with the whole investing piece to compliment me.
this is the first job ive ever had one in so i have 0 knowledge about it. i just knew its good to contribute so i did. i have a lot to learn tho so ima read up on this.
dora_da_destroyer
Master Baker
this...if you're single, young, and have the means to buy, get a multi family, no reason for SFH when you can have someone else paying part or all of your mortgage without having to rent rooms in your own spot to others, condos are also ridiculous (in some cities) due to the crazy HOA's that often don't provide you with much