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Post by smalltowngirlie on Jul 31, 2014 19:16:17 GMT
How do you decide how to invest in your 401(k) plan. I am eligible for my company's plan and don't know what to do.
I am 47 and I know that I can move up in this company, they have said that from right from the beginning. (Yes I am interviewing at another place, but I was not looking for something and obviously if I get that job I will be leaving current one)
So, how do I decide what to invest in, how aggressive should I be?
I will do my best to answer questions, but I know nothing about this.
Thanks, Becky
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Deleted
Posts: 0
Oct 7, 2024 0:24:44 GMT
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Post by Deleted on Jul 31, 2014 19:20:40 GMT
Does your company match? At the very least, you will want to contribute up to their matching point - i.e. if they match 4%, you should contribute 4% (We are so, so lucky that DH's company matches almost 10%. It hurts to set aside 10% of DH's take home pay (because we have a Roth 401(k) but it's like throwing money away if we don't.)
There are lots of retirement calculators, but a lot depends on your income and how much you need to have available at retirement. Conventional wisdom is about 15%, but if you haven't been saving for retirement up to this point, you are behind.
You still have plenty of time to be rather aggressive.
It might be worth it to find a financial planner who will work with you on an hourly basis to help you select and/or monitor your options within what your company offers.
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Post by kimpossible on Jul 31, 2014 19:23:39 GMT
Many 401k plans have "investment or retirement advisors" that are part of the plan. Usually you have to call them up to go over your options.
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Post by ChicagoKTS on Jul 31, 2014 19:31:43 GMT
Fortunately my employer has many choices including a set of predesigned plans based on the decade you plan to retire. Thus if you plan to retire 20 years from now you could choose the 2030 plan. The plan managers choose what they consider an appropriate investment mix for someone to retire in that decade. It helps takes the pressure off in trying to decide what mix of investments to choose on your own. I don't know if you have that sort of option but if you do that might be a good place to start until you can figure it out on your own or talk to an investment advisor.
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Post by annabella on Jul 31, 2014 20:15:15 GMT
My company has a consultant you can call personally to discuss how you should invest. When I worked for a larger company HR held information meetings. I invest at every job I work at, no matter how long I think I'm going to be there. When I leave the company I roll over my investment to one big plot I have elsewhere.
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Post by scraphappy57 on Jul 31, 2014 20:18:20 GMT
We have always done the max of what the employer will match.
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SabrinaP
Pearl Clutcher
Busy Teacher Pea
Posts: 4,408
Location: Dallas Texas
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Jun 26, 2014 12:16:22 GMT
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Post by SabrinaP on Jul 31, 2014 20:20:14 GMT
If your company matches, try to at least put in that amount. Free money!
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Post by christine58 on Jul 31, 2014 20:39:59 GMT
I have a 403 (b) plan as a public employee..I meet with a financial planner and that person helps me. I have mine split into three different "groups".
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Post by mom2jnk on Jul 31, 2014 22:01:56 GMT
Your first step needs to be contacting your company's HR department to get some more information regarding your options. Find out who manages their plan, what funds are available to you in that plan and then, most importantly, you need to find out if your company will match any of your contributions to the plan. Your company's HR rep should have a package of information readily available for you. Do you know what family of funds are offered in your plan?
When you have some more information on your plan's specific options, come back and post some more details. The most important thing is not to delay getting started!
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Post by ladytrisha on Jul 31, 2014 23:09:58 GMT
We've done 10% thru my husband for years - they matched 50% up to 6% match. The last several years, they upped it to a 100% match up to 10%. It's worth the slogging away when we get the letter each January and see DH's contribution with a matching one next to it. I'm finally, finally at a job with a 401(k) They do a 50% match up to 6%, but I've also set a 1% increase each year that goes into effect 1/1 up to when it reaches 10%. All I can tell you is that it adds up quickly which is really great to watch. Some here allocate their annual bonus to go 100% into their 401(k) - I'm hoping to be able to do that soon. I'm still adjusting to the fact I get these things! Considering your age, I'd contribute at the very least the amount up to what they match so if they will match up to 6%, do the 6%. It's free money. Hubby and I have always been fairly conservative, but we're still very stock heavy. Remember - don't look everyday at how your funds are doing. It's a rollercoaster and it can send some people reeling because they've lost X amount -- you haven't lost a thing until you sell or take your $$ out.
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Post by ntsf on Jul 31, 2014 23:33:21 GMT
it is often recommended not to invest much into your company stock--not putting all eggs in one basket
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Post by smalltowngirlie on Aug 1, 2014 3:58:44 GMT
They will match up 15% . If I stay at this job we will have to see if I can set aside that much. I juts got a small raise so it won't be too big of a difference, and DH just got a job that pays pretty well. Thanks for the tips.
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