So I just started a new job and have to make my elections for how to invest my 401k (my money + company match) and employer funded retirement plan (100% company funded).
What do you guys have your 401ks set at for investments? We have decent options (1 MM, 6 bond funds, 6 life cycle funds, 5 large cap, 2 mid cap, 3 small cap, 4 intl, and 1 REIT) and pretty low fees, the highest is about 1.25%.
I was thinking of putting most of my allocation into large and mid caps, a bit into intl and reit, and a bit into life cycle since they have decent returns. I was planning on shunning the MM and bond funds. I was planning on being relatively agressive since I already have taxable brokerage accounts and a roth IRA.
46% silver and silver miners 11% gold and gold miners 25% in a few individual names I like 18% in a target date fund (I know, but I think I’m taking enough risk)
Talk about aggressive… I like it though. I really don’t like 401k’s, but it is stupid to pass up free company match money. I’m only putting in the minimum to get the maximum company match. I prefer picking individual stocks or low cost ETFs. The other suggestions aren’t really all that practical given my investment options. Former trader’s are doable but I can’t be that specific.
My 401k and company match go into a Schwab PCRA (brokerage) account so I can do pretty much anything but options. If I was constrained to traditional asset classes, I’m not sure what I’d do at the moment.
Isn’t it an ethics violation to do this without a full understanding of kk’s risk tolerance, age, wealth, etc? In anycase, just make sure you pick the lowest cost funds in each group and don’t completely shun the MM right now. It might be the only one that doesn’t lose money over the next 2 years.
I use a target date fund since my selections suck. The aggregated cost of the target date is less than the individual picked funds of a similiar variety. I also have a Roth that I allocate myself.
In anycase, just make sure you pick the lowest cost funds in each group and don’t completely shun the MM right now. It might be the only one that doesn’t lose money over the next 2 years.