401k investing with Charles Schwab

Zillow Group / Eng iplaypoint
Dec 9, 2018 14 Comments

Should I invest my 401k money in stocks or is now a bad time?

Doesn't seem like there's to many great options to choose from. Already lost 50$.

This is what I'm thinking of investing in now:

PRIMECAP Odyseey Growth 25%
Vanguard International Growth Inv 25%
Vanguard Small Cap Index I 25%
Vanguard Instl Trgt Retire 25%

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TOP 14 Comments
  • Intuit NoL33tcode
    You shouldn’t be worried about short term movements

    Investing is like planting a tree and enjoying its shade 20 years later
    Dec 9, 2018 7
    • Intuit NoL33tcode
      If your time horizon is long it doesn’t matter if the market crashes in 6 months or a year

      Read the blog post on “the worlds worst market timer”, a theoretical investor who only invests before market peaks.

      TLDR the theoretical investor makes BANK cuz the next peaks are always larger than the prior. So they get a great return over a few decades
      Dec 9, 2018
    • Zillow Group / Eng iplaypoint
      OP
      will check it out thanks. if I plan to leave companies in just a couple years you think it's wise to invest in stocks?
      Dec 9, 2018
    • Intuit NoL33tcode
      What matters most is if you’ll need to access the money

      Let’s say you’re about to drop 100k in stock market but planned on using that cash in 12 months for a down payment. I’d say, don’t put that into stocks.

      If you have no immediate need for the money in the next 5/10 years, then you should feel comfortable putting it into stocks
      Dec 9, 2018
    • Zillow Group / Eng iplaypoint
      OP
      got it, thank you!
      Dec 9, 2018
    • Intel burrrp
      Also check out bill Bernstein write up in investing. http://efficientfrontier.com/ef/0adhoc/2books.htm read "if you can"
      Dec 11, 2018
  • 50$ ?
    Dec 9, 2018 1
  • New DuQvV7x
    If you plan to work for another 20 years, then identify a diversified portfolio and stick with it.

    Balance annually.

    You may lose up to $100 or more. Resist the urge to run for cover.
    Dec 9, 2018 0
  • Teledyne Technologies wish I knew
    Short term fluctuations don’t matter. Dollar cost average your contributions I.e. invest throughout the years whether market is up or down. Your choices for diversification look okay with one possible suggested change. Reduce target date percentage by half, and invest the remaining half in mid cap index. That way you won’t miss out on market cycles and stock rotations that are inevitable
    Dec 9, 2018 2
    • Zillow Group / Eng iplaypoint
      OP
      thanks, and there aren't any mid cap stocks
      Dec 9, 2018
    • Teledyne Technologies wish I knew
      If no mid cap, then use IRA on your own separate account to specifically choose a mid cap index. Choose Roth if your income level allows, otherwise non deductible traditional, assuming your income is too high for deductible IRA. Balance all accounts once in 3 years (conventional wisdom is yearly but I find 3 years is better since it gives more time for winning areas to grow).
      Dec 9, 2018

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