I am 25 and my employer offered me the 401k, the only thing is that I am not too familiar with bond, stocks. I need help in deciding what fund will be most beneficial for me. I know i have to diversify my portfolio..but i really need help.
2007-01-23 00:34:23 · 5 answers · asked by Lolita S 1 in Business & Finance ➔ Investing
This will be a better choise
Enjoy a guaranteed Fixed Return
Average Investment Return – 20% per calendar month
300% Returns in 450days
Frequency of Payments: Every 30 calendar days
More Income for Financial Consultants
Built USD78 million fund within 6 months of global launching
Expected to hit USD1 Billion by 2007
Principal guaranteed by Swiss Mutual Fund(1948)
Great financial facilities...Try to register to see either its work with you or not...Please send me and email to meezila1979@yahoo.com.my...100% Satisfaction Guarantee
register here.... http://www.swisscash.biz/mykam1564301
2007-01-23 07:54:56 · answer #1 · answered by matt 1 · 0⤊ 0⤋
Define beneficial...can you handle extreme ups and downs? If so then weight more heavily to the stock funds or as one other poster said 100% in the S&P 500. Over time that will perform at about 12% per year which will give you a nice return.
However, this is where he and I differ. As you get older (late 40's to early 50's)....you DO need to diversify. The problem with not diversifying is that if you get hit with a series of negative returns during the time frame that you're ready to retire at you may not be able to recover.
That's the problem with those that are non-diversifiers...they don't take into consideration that there are ups and downs in the market and sometimes people have more downs then up. The market's 12% return is over a period of almost 100 years...but in between there are long long long periods where it didn't come close to that number. And that some people are unfortunate to have more downs then up during their 40 year work career. And they are double blasted by hitting a recession at the tail end. Better to accept lower expectations of the returns, invest wisely, and start diversifying towards the tail end....you don't wake up at age 55 and immediately diversify...but moving it over annually a bit at a time isn't a bad thing.
2007-01-24 15:24:25 · answer #2 · answered by digdowndeepnseattle 6 · 0⤊ 0⤋
Well, I'm a bit of a maverick but I have "everything" in stocks. I don't believe in "asset allocation". That is a cop-out for financial advisers so they don't have to explain mediocre gains.
Over the long term stocks are the best place to be. For a retirement fund, I have all of mine it a fund that tracks the S&P500. And my amount is well into 6 figures.
My method let me retire before the age of 50.
I don't worry about the market going down because I won't need all the money at one time. The last 5 years are proof of that.
If the S&P500 doesn't go up by the time you retire, we'll all be living in caves and sea shells will be the currency of choice.
2007-01-23 20:34:23 · answer #3 · answered by Peter C 2 · 0⤊ 0⤋
At the age of 25, you should be investing in a medium to large cap "no load, no 12b-1" growth fund. I would pick the Vanguard family; they are low cost and you would have a wide variety of individual funds to choose from.
2007-01-23 12:29:42 · answer #4 · answered by Puzzleman 5 · 0⤊ 0⤋
The Freedom Funds are especially designed for the buy and leave alone retirement accounts as they automatically change their asset allocation as you age. So they are good if your risk tolerance/goals is about same as what the fund uses (what they think the average investor your age would be).
2007-01-23 10:03:21 · answer #5 · answered by gosh137 6 · 0⤊ 0⤋