#401k As a person who works for a bank and went to school for Economics and Finance I would say I'm savvy enough when it comes to investment choices for my 401k. I want to hear especially non finance/investment related folks to see how they manage their 401k's to see if there's really an "alphabet" bias (people choosing the first investment choices that appear) and also if your companies offer some sort of guidance in this matter. Thanks in advance.
100% index funds if your 401k has them. Index funds best active managers over the long run. If index funds not available, optimize for fees. Read Burton Malkiel's book for more insight.
Pretty sure most people like me leave it in the default target fund.
Enjoy those high fees and virtually same Returns as index funds
My target fund has the same fee ratio as an index fund, it’s with vanguard
Default retire plan
Is the default option a retirement target date fund ? I ask because I've seen some plans don't have these retirement target funds.
Yes.
One company had it default to its own stock fund
100% VT
VT??
VT
33yo, 100% ETFs: 66% US stocks, 14% international stocks, 20% bonds
I had the same problem of not knowing how to invest. I read John Bogle book and talked to a financial adviser for free. my current investments are in index funds: 80% stocks + 20% bonds. 20% international stocks. domestic stocks are a blend of small/mid/large cap. I'm 34 yo.
I have a friend who does financial planning and told me to this Its a nice blend of aggressive conservative and moderate with the lowest fees I trust his advice so here we go
100% s&p500 fund. Fire and forget.
Isn't large cap growth better than Index funds?
Risk goes up as well. Small caps have bigger growth and highest risk though. Indexes are mixtures. Russell 1000 is a good mix.
Blue chip growth fund beat Russell 1000. Large cap growth returns are more or less like Russell 1000. (+/- 5%)
I chose the default option mostly because I didn't understand 401k when I invested, I don't think I still do. At the end of the thread, could you share your investment strategy and reasoning