Aparently, there are some choices to make as to the risk level desired on investments.
Is it necesary to consult a personal accountant or can I let the financial advisor who serves my company handle everything.
Thanks for your help. I am not sure how 401 K investment work.
2007-03-13 09:44:59 · 6 answers · asked by 5324 2 in Business & Finance ➔ Investing
You don't have to. I would sit down with an adviser and take stock of your financial situation and make investment choices based on what your goals are.
2007-03-13 09:48:39 · answer #1 · answered by R Worth 4 · 1⤊ 0⤋
If you are not mathematically inclined, you can just go on faith. I would advise you to become mathematically inclined though so you don't get ripped off as easily. Sometimes people who depend on their living making a living off your money get in binds and do some nasty stuff. You are lucky if you have both an honest investment person and a skilled one. Many times these people take advantage of other people because they can and it is acceptable procedure amongst their own. Their thought is that they are already doing what you couldn't for yourself, devaluing what you are to society, because they have the purse strings. Sad...so be prepared to lose big time if you are not completely comfortable with these people. Many of them own yachts and other high priced toys. They didn't get that stuff picking up nickels off the pavement. People like you gave them your money. They used it to make money and gave you back a little ....sometimes negative results. Their trades are very close to insider. But it is your money. And you have to put it somewhere. Safer in FDIC if you want it in any near future.
2007-03-13 09:58:23 · answer #2 · answered by Anonymous · 0⤊ 0⤋
No, but you should be getting paper work on what is offered.
If you don't understand something, then maybe you should.
www.investopedia.com can help you out on some terms.
Be weary of 401Ks that make the person (even if its just the employeer's offering) include the company's stock in the 401K.
Do not follow gains. Just because something went up 25% for the past three years, doesn't mean it will keep going up.
2007-03-13 10:15:08 · answer #3 · answered by gregory_dittman 7 · 0⤊ 0⤋
No...just read the summary of the funds and decide on your own...if u are young u should go for moderate risk...if u r old (not) then choose low risk...I assume they are all mutual or index funds...ask what the returns are for the last 30 days, last 3 months, last year and last 3 yrs...pay close attention to the last 3 months...the market hasn't been going straight up like it did the last few years...choose the one that has performed the best. Check it quarterly and adjust as necessary...that's all there is to it. I would stay away from the company fund if that is offered...go with a mutual fund.
2007-03-13 09:56:18 · answer #4 · answered by Steelhead 5 · 0⤊ 0⤋
No, you should be able to make the decision with a small amount of discussion with friends and co-workers.
Or, just roll the dice. Your initial investment is small, so you don't have much to lose. In a year or two, your investment will be bigger, but you will have learned about investments in the mean time.
2007-03-14 06:22:33 · answer #5 · answered by Quixotic 3 · 0⤊ 1⤋
401 can be used by that company to invest in stocks, if they win you get a peace of it, if they loose say bye bye money.
Had a freind that lost her complete 401 because of it.
Good Luck,
2007-03-13 09:54:14 · answer #6 · answered by spiritwalker 6 · 0⤊ 1⤋