What should I look for when I set up my 401k?

Alvin

Superstar
Joined
Dec 16, 2015
Messages
19,054
Reputation
734
Daps
24,711
Vanguard sent me something in the mail, I was wondering should I go with them or go through my employer (Robert Half Technology)
 

KING WILL

Superstar
Joined
Jun 14, 2018
Messages
8,208
Reputation
1,250
Daps
21,824
Vanguard is the bigger brand, but they all more than likely hold similar funds.

Like some ETF's that covers the entire Market, or Blue Chip Companies, or the Tech, or Medical sectors. Some can cover Companies that only offer dividends.

Other selections are based on when you are planning to retire. For instance, if you are set to retire 40 years from now, your plan will start of very aggressive(for growth) and the closer you get to retirement it shifts from aggressive investments, to safer investments (for stability).

Research both the best you can, but personally I would go w/ VG cuz I can be more certain that VG will still be standing 30-40 years from now, when its time for me to collect.
 

Alvin

Superstar
Joined
Dec 16, 2015
Messages
19,054
Reputation
734
Daps
24,711
Vanguard is the bigger brand, but they all more than likely hold similar funds.

Like some ETF's that covers the entire Market, or Blue Chip Companies, or the Tech, or Medical sectors. Some can cover Companies that only offer dividends.

Other selections are based on when you are planning to retire. For instance, if you are set to retire 40 years from now, your plan will start of very aggressive(for growth) and the closer you get to retirement it shifts from aggressive investments, to safer investments (for stability).

Research both the best you can, but personally I would go w/ VG cuz I can be more certain that VG will still be standing 30-40 years from now, when its time for me to collect.
let's say I go with a company that closes in 10 years. What happens to the money I put in?
 

KING WILL

Superstar
Joined
Jun 14, 2018
Messages
8,208
Reputation
1,250
Daps
21,824
Heres VG statement:


Your investments are held separately from Vanguard's own investments and are therefore not part of our balance sheet. All funds are registered in a nominee account and held in accordance with FCA rules. All money we hold for you is held in trust accounts with an authorised bank in accordance with FCA rules.

The segregation of your funds and money from Vanguard's own assets means that, in the unlikely event of Vanguard becoming insolvent, an insolvency practitioner would be able to identify assets held by investors and make sure they are returned to them as quickly as possible or transferred to another provider.
 

phcitywarrior

Superstar
Supporter
Joined
Nov 19, 2016
Messages
12,464
Reputation
4,465
Daps
30,406
Reppin
Naija / DMV
Question for y'all, I'm looking to change jobs in the next 3-4 months. Does it make sense for me to start investing into my current companies' 401k plan even if I know I'll be dipping in a few months?

I kind BSed by not setting up a 401k the moment I started working here straight out of college. It's been 18 months and I could have come up something decent if I was even just putting away $200 a month (lack of foresight on my part.)
 

Truefan31

Superstar
Joined
Jan 9, 2016
Messages
4,409
Reputation
660
Daps
13,112
Vanguard sent me something in the mail, I was wondering should I go with them or go through my employer (Robert Half Technology)

Vanguard is a great company imo for retirement planning, there's others as well (Fidelity is a good one too imo). What company does your employer use?

Anyway in general some things to look for are how diverse are the fund options you have, and what are the expense ratios. Does your employer offer a match with your contributions? If so, that's the best way, since it's basically free money.

See if you have an option for a Roth 401k. You fund it w/after tax dollars, but the growth you receive is tax free, which will be great when you are older and are ready to withdraw.
 

Truefan31

Superstar
Joined
Jan 9, 2016
Messages
4,409
Reputation
660
Daps
13,112
Question for y'all, I'm looking to change jobs in the next 3-4 months. Does it make sense for me to start investing into my current companies' 401k plan even if I know I'll be dipping in a few months?

I kind BSed by not setting up a 401k the moment I started working here straight out of college. It's been 18 months and I could have come up something decent if I was even just putting away $200 a month (lack of foresight on my part.)

yes still contribute to your 401k even if you change jobs. If/when you leave and move jobs, you have options. You can either let it sit in that account and keep using them, or you can do a rollover to your current 401k w/your new job. Honestly which one is best is really determined by mostly which 401k plan is better. If the old one is better, there's no harm in leaving your money in there.

If the new one is better, then do the rollover. Make sure it's a direct rollover, that the funds from the plan go directly to the new plan. This will avoid any taxes/fees.
 

chineebai

Superstar
Joined
May 11, 2012
Messages
10,243
Reputation
866
Daps
27,491
Reppin
NULL
You can't set up your own 401k it is only through an employer unless you own your own business..you can set up an IRA which is similar but the limit is a lot less.

Or just buy into vtsax, unbeatable fees and covers like 3500 stocks so very diversified. I have both IRA and 401k
 

GetSomeMoney

All Star
Supporter
Joined
May 11, 2012
Messages
3,418
Reputation
1,335
Daps
10,838
Question for y'all, I'm looking to change jobs in the next 3-4 months. Does it make sense for me to start investing into my current companies' 401k plan even if I know I'll be dipping in a few months?

I kind BSed by not setting up a 401k the moment I started working here straight out of college. It's been 18 months and I could have come up something decent if I was even just putting away $200 a month (lack of foresight on my part.)
If they match, CONTRIBUTE, that's free money you would be leaving out there. If they don't and you only plan to contribute 200 dollars a month, go for a Roth IRA, investing on your own will always provide you better options and lower fees typically. The 401K has a higher contribution limit but again if a company doesn't match, contribute to the Roth IRA first and if you want to invest more, put the rest in the 401K.
 
Top