A little backstory. I’m in my early 20s so I’m able to be a bit risk on my investments, and recently hired by Microsoft. I have been doing some research on what the best index funds are. However, when I go to fidelity to pick my investments all I see are index trust and I have no clue if that is the same thing as index funds. Sorry I’m dumb when it comes to these things :( If you could go back in time and talk to your young early 20s dumb self and give guidance on where to put your money in, what would you pick out of the options on my picture? (FOR REFERENCE THESE ARE THE OPTIONS I SEE ON FIDELITY) TC: 180k #personalfinance #investments #microsoft #401k
If you’re in your 20s, just go 100% into the VAN IS S&P500 IDX TR (3rd selection in the 2nd section). Thank me in 30 years
This. Set it and forget it. It's important to not get decision paralysis here. S&P500 now is good for a life time. You might adjust it later in many years when you learn more.
The simplest thing to do is the pick one of the target retirement funds, such as the LPATH 2065 one. It will be well diversified and they will adjust the risk allocation accordingly as the 2065 target retirement rate approaches (in other words, adjust the fund to lower risk assets such as bonds). Feel free to DM for more info!
Never do target unless you want lowest returns. I did the same taget fund per the etrade guidance back in 2013 and missed alot. Btw, I did change to large cap sometime in 2017 and my 401k went up 30%
Target fund will hardly be close to “lowest returns”. That would be if you put all your money into bonds or something. That target fund had 26% returns last year. Target funds are well diversified and lower risk than just S&P500 or just large cap, while still having solid returns. If you look at the LPATH 2065 one, it’s actually 56% top 1000 large cap. Ultimately, it’s all about your risk tolerance. You could definitely put all your money into the S&P 500, but then it’s on you to manage that wisely and slowly diversify into lower risk assets when retirement time approaches. Otherwise, you are at risk (for example, a market crash could happen as you enter retirement and plan to make a withdrawal). Ultimately, most people probably will not be actively replacing and diversifying their retirement portfolio regularly which is why I recommend the target funds.
Get access to brokerage link so you can buy mutual funds and potentially stocks and options depending on company (call Fidelity to ask what your employer offers)
This is not a simple option. Choose one of the vanguard ones, like other comments.
Vang Rus 1000, or any Van ones that have the words Total, Rus, 500 are all good. These vanguard funds buy hundreds or thousands of companies stocks to diversify for you, and charge you are cost (very low cost).
For 401 as it’s company managed you only invest in the options they provide. Max out your roth 401 and invest in Snp options it’s the vanguard one.
Sp500 or target date fund (2060-2065) should be fine for 401k if you’re not too experienced. Roth401k is better than traditional if ur company offers it
The Roth part is debatable. I wouldn’t just blindly say it’s better than traditional.
The one you have selected in the picture is the right one for long term.
FID GR CO POOL? Isn’t the Exp ration a bit higher compared to others? Is it still worth it due to the higher % return?
FID GR CO POOL is not a good option for long term. It is an actively managed, expensive, growth company focused fund. You will outperform it by investing in the low cost S&P500 fund in the long term.
Buy Vanguard S&P 500 Index (VOO). Buy and never sell. Buy it every week if you can. But it high, but it low. Learn about dollar cost averaging. Don’t listen to the rest of these idiots and their get rich schemes. 2 of them might make it, the rest of them are on blind every night talking crypto, complaining about their TC, and getting laid twice per year.
Wisdom ^
I have been managing my 401k with Blooom which is a robo advisor for 401k. They do the rebalancing. They are fine. https://www.blooom.com/
Bruh wtf. Buy DOGE
What’s your tc at albertson?
$750K with the stock appreciation over last year