401k help!!!
Hey so I’m 24 and just got my 401k statement looks like I’m down 15% for the year which sucks. I thought I was smart by haveing almost off my 401k in indexes of tech stocks. FML. So with the pending recession how should I recalibrate my 401k. My company uses fidelity if you have Names of funds that would help. Thanks TC 121k
I still don’t know what is 401k tbh and I never registered for it. Now joining to Blind I hear everyone saying max it. I wish someone can explain what exactly is this.
it's a retirement account through your employer. Absolutely put as much money as you can afford to for retirement.
Tldr Its a tax deferred retirement acct. Pre-tax dollars are taken out of your paycheck and deposited into an investment account by your employer which are automatically invested and rebalanced by your brokerage. You most likely get matched on the funds up to a certain % by your employer. Its a valuable set it and forget it retirement tool.
Don't worry. Sit back and enjoy the roller coaster ride. It will eventually go up in the long term in 10-20 years
Tell that to Japan.
At 24 just raise your contribution and then stop looking at it.
Stay in an all tech funds?
Not a financial adviser but its really risky to invest your 401k in a specific sector. You want total market indexes and financial products geared towards 40/50 year retirement horizons. They are aces because as you get closer to retirement, the brokerage will rebalance from growth investments to safer investments like bonds and dividends.
Put your 401k in MU for easy returns. Set and forget! Also check out r/wallstreetbets for the best investing advice. You’re welcome!
Why don’t I just put 100% in Coinbase?
You're 24. Retirement isn't for about 40 years before you're not penalized for early withdrawal. Wtf r u worried about?
S&p 500 index funds all the way
Invest in 2060 target retirement if available or mimic its diversification. U can keep some percentage for u you to put in ur preferred long term "take" on the market, if needed. Most of the target retirement is invested in indexed stock/bonds (domestic/intl)
It depends on your situation. What's the WORST CASE for you, if you lost your job? Do you have a mortgage to pay and kids to support? Or, however humiliating, could you actually move back in with mom if you had to? This should determine how much risk you are willing to take. If you have real obligations you should save to be sure you can support your family and make those mortgage payments. You will want to have cash/bonds/CD's sufficient to cover expenses for 6 to 12 month to tide you over until you can find a job. The rest all in stock index funds. If you have no such obligations and you could really go live with mom then you can afford to take some risks. 100% in stock indexes. Think this way: you're buying them for the long term and right now they are on sale 15% off. You would be even happier if it was 30% off and overjoyed if it was 50% off. Buy buy buy! But only take that kind of risk if you have basically zero downside to bring flat broke and unemployed.
I have a mortgage but no family or anything like that. I also have no debts other than mortgage. Are you saying even put cash I have over 12 months of expenses in to taxed stocks?
I am saying make sure you know how the mortgage will get paid if you are unemployed for 6 months to a year and at a time when the market is down and housing prices have fallen and nobody wants to rent your place (because that's how it is when it's possible to be unemployed that long). If you have that figured out you're good. I have 12 months of expenses in short term bonds and all else in stock indexes. When planning that I assume I'll tighten my belt and live frugal until I find a job, I won't be buying lattes every day and ordering Uber Eats a lot. But some spending can't be cut like the mortgage, property tax, etc.
401(k) is a long term game. You have another 40~ years of working before you can withdraw funds. Take a look at trends over 3-5~ year incrimates and reassess then. Stocks were shit in 2008 and now is da bomb diggity for anyone who invested back then. Now is the time to probably buy actually.
Index funds are pretty much the best bet at the moment. Given you are 24 your time horizon is pretty far away. Chill and relax. It'll sort itself out. If you really want to you could talk to a certified financial planner who may be able to put together a more personalized plan.
Do you think I should stay in the all tech funds as I am now or move the money to something else like the spy, or Dow?
Bitcoin aggregates.