So I started my 401(k)

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Leonaerd
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So I started my 401(k)

Post by Leonaerd »

Pouring as much of my paycheck as possible into some high risk stuff. I talked -very- briefly with my family's financial advisor and am having a thorough discussion with him some time next week. Nothing is set in stone but what I have so far is:

100% into Fidelity Freedom 2050 Fund

Strong options he mentioned using:

Fidelity Low-Priced Stock Fund
Fidelity Contrafund

I have ~40 fidelity options and a couple options through Spartan. I figure I'll use Roth as much as I can for as long as I can and slowly migrate to pretax contribution as I build up bank.

Wondering what y'all think.
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Aslanna
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Re: So I started my 401(k)

Post by Aslanna »

Leonaerd wrote: I figure I'll use Roth as much as I can for as long as I can and slowly migrate to pretax contribution as I build up bank.

Wondering what y'all think.
I'm no financial person by any means but I don't think there's really a need to choose one over the other unless you can only afford one option. I participate in my employers 401k and have a personal Roth as well and I do max contributions to both.
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Leonaerd
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Re: So I started my 401(k)

Post by Leonaerd »

It's so that in 40 years I can withdraw without getting taxed. Gobblin' up that tax-free interest moneys.
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Re: So I started my 401(k)

Post by Aslanna »

I realize that. That's why I started my Roth in the first place. Point being there's still a yearly limit imposed no matter which route you go. So if you can do both, and save more in the process, why not.
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Re: So I started my 401(k)

Post by masteen »

Get the fuck out of those "targeted date" funds, and put your shit into a real index fund. Those fucking funds are scams which usually trail upswings, lead downturns and seldom result in better-market-average returns.
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Leonaerd
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Re: So I started my 401(k)

Post by Leonaerd »

I'm listening. :)

Very new to this.
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kyoukan
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Re: So I started my 401(k)

Post by kyoukan »

If you want to be making that Avestan money you need to throw everything you own into companies into teleportation or time travel and quintuple your investment in six months if they invent it. It's the only way to invest.
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Re: So I started my 401(k)

Post by Spang »

Invest in gold and survival seeds.
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Re: So I started my 401(k)

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Spang = Glenn Beck? It's all starting to make sense now.
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Re: So I started my 401(k)

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Or, Spang's post = Glenn Beck reference.
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Leonaerd
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Re: So I started my 401(k)

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TBH I'd love to hear Avestan's perspective.
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Re: So I started my 401(k)

Post by masteen »

Index funds are generally divided into 3 categories by market cap. These funds strive to sample a representative range of companies in each cap class.

There is an assload more that could be said, but all that's really relevant is that they are an easy tool to use to keep your investment earning market returns for market risk. I had mine split 40/30/30 large/mid/small cap index funds.

Best part is that you don't have to baby sit these, only if they change fund providers.

I also kept some money in a bond fund, because Wu Tang Financial said you need to diversify yo bonds, nigga.

I liquidated all that shit and turned it into a house after I vested in the state retirement. Now I just have to make sure Gov. Voldemort doesn't raid it when he gets bounced by some tea party fanatic in the 2014 primary.
"There is at least as much need to curb the cruel greed and arrogance of part of the world of capital, to curb the cruel greed and violence of part of the world of labor, as to check a cruel and unhealthy militarism in international relationships." -Theodore Roosevelt
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Leonaerd
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Re: So I started my 401(k)

Post by Leonaerd »

I've made about 5% over what I've invested during this short period of time. I'm putting a lot of money from each paycheck into the account, and I have to say it's weird to see all this free money coming in.
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Re: So I started my 401(k)

Post by Winnow »

Leonaerd wrote:I've made about 5% over what I've invested during this short period of time. I'm putting a lot of money from each paycheck into the account, and I have to say it's weird to see all this free money coming in.

In early 2000's some 401K's just about halved over the course of a month or so. (sucked for people retiring!) Enjoy the gains! Over time it goes up, you happened to start yours on a big upswing in the market so it's a nice time to start.
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Re: So I started my 401(k)

Post by Aslanna »

Yeah it's not always sunshine and roses. Enjoy the FREE MONEY now but don't get discouraged when your account value drops 40% in a month. The way I look at is is hopefully I come out with at least what I put into it. And gains over that will just be a bonus.
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Re: So I started my 401(k)

Post by kyoukan »

as soon as Obama's printing press breaks down and he can't print any more money to shove into the economy, you can kiss your 401K goodbye because wall street has learned absolutely nothing from 2008. you would be better off burying your money in a coffee can in your yard.
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Leonaerd
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Re: So I started my 401(k)

Post by Leonaerd »

It's true. I think I'm going to cease contributions and buy a boat stocked with food.
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Re: So I started my 401(k)

Post by Fairweather Pure »

I put all my money into bitcoins!
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Re: So I started my 401(k)

Post by Winnow »

Leonaerd wrote:It's true. I think I'm going to cease contributions and buy a boat stocked with food.
I wouldn't bank on global warming with just a boat. I'd also get a snowmobile with a little snowmobile trailer attachment (ask the Canadians for help finding a good deal) to haul your goods in case we get blindsided by an ice age.
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