Any 401K Guru's here?

blackwaterstudio

I'm fixing to setup my 401K. I'm going with a Aggressive portfolio. It goes something like 30# T Row Price Equity Income Adv, 30% American Century Ultra Inv, 20% Templeton Foreign, 10% Franklin Balance Sheet A, and 10% Ivy Small Cap Growth Y.

I'm not much into this kinda stuff so I'm looking for some help trying to understand everything. I've got atleast 25 years to I retire.

fish

I wouldn't call myself a "guru" but I know something about 401k's. Do you have any specific questions? I don't follow any of those funds you mentioned, but I like the diversity. Equity income funds aren't usually considered "aggressive", tho...they're fairly conservative. Do you have a prospectus for each of the funds? You can get a lot of info on their performance and goals on either morningstar.com or fidelity.com.

401k is good. Maxing out your IRA simultaneously is even better.

Does your company match your contributions to your 401k? If so, at what rate and what's the cutoff $ amount?

Angelo

I recommend balance in your account, not all aggressive. IMHO you shouldn't put any more than 20% of your total contributions into aggressive funds.

In addition to European funds look at emerging Asian markets. China and India will continue to grow hugely (but be conservative).

Put a good deal in technology and bonds. Also look for construction / development / homebuilding & real estate trust portfolios.

If you don't already have a Roth-IRA open one, divert part of the planned 401K contributions to it and fund it to the maximum each year. A Roth is pre-tax now and no-tax later; a win-win strategy.

Most importantly - manage your money. Don't just open these accounts and forget about them.

Angelo

also check out The Motley Fool. www.fool.com