So I started my 401(k)

[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.

[Aslanna]

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.

[Leonaerd]

It's so that in 40 years I can withdraw without getting taxed. Gobblin' up that tax-free interest moneys.

[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.

[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.

[Leonaerd]

I'm listening.

Very new to this.

[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.

[Spang]

Invest in gold and survival seeds.

[Aslanna]

Spang = Glenn Beck? It's all starting to make sense now.

[Spang]

Or, Spang's post = Glenn Beck reference.

[Leonaerd]

TBH I'd love to hear Avestan's perspective.

[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.

[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.

[Winnow]

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.

[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.

[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.

[Leonaerd]

It's true. I think I'm going to cease contributions and buy a boat stocked with food.

[Fairweather Pure]

I put all my money into bitcoins!

[Winnow]

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.