Just had a look at my 401K account and it shows in 1 year the return has been -0.15%. Seems like bad picks considering the market performance. What could be a better place to ask this than a community of elites with average TC more than 250k. TC:145K
I think it would be best to consult with a financial advisor then people on blind
That’s a good advice and will probably do that.. but wanted to check with this community as well
Option a) Buy a low cost S&P index fund and hold indefinitely Option b) Buy Berkshire Hathaway and hold indefinitely. Buffett is the best at asset allocation and the best picker of stock picker
Just dump it in a target date fund and forget about it (seriously). Get rich slowly.
What’s that?
Examples: Vanguard Target Retirement 2050 (VFIFX), Fidelity Freedom 2050 (FFFHX). Starts stock heavy (high risk) then auto adjusts to be less risky as you approach the target date. Usually mirrors a typical 3-fund portfolio (US total stock index, int'l total stock index, bond index).
Don't bother consulting financial consultants. Its not hard to do some reading and figure out what etfs or funds to buy to meet your financial goals. The longer your time horizon, the easier it is to figure this out.
Just buy S&P tracking index fund with dividend and low cost.. you’ll be sure shot millionaire in long run.
Thanks Xpmo
If its YTD then it's about right. If it's 1 year then you should have at least 10% given the market conditions
Buy the lowest cost index funds. They should run around 0.04%. By default, I've been opted into Fidelity's target fund and it was charging 1.5%! Be careful. Another trick is to completely frontload your contributions at the beginning of the year. More money in the market earlier. From historical data, 2 out of 3 years that will be a better bet than if you just dollar cost average throughout the year. Finally, if you have too much money and don't need it for another 20 years, consider using the mega Roth back door if your company offers that. You can contribute up to $55k (I think) a year. The benefit of this is the tax you save on capital gains. P.s. never take financial advisors advise unless you have a very abnormal financial situation (e.g. IPO event). No one will be a better financial advisor than a financially-informed version of yourself.
Vtsax
If you think you will have the resolve to ride out the inevitable downturns in the stock market over the next 20 years, equity ETF’s are probably best. VTI: 50% VUG: 10% VOT: 10% VBK: 10% VGT: 10% VXUS: 10% ...is worth considering.
In how many years do you expect to withdraw?
Don’t plan to withdraw before retirement. At least another 15-20 years