401k help!!!

Jan 14, 2019 40 Comments

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


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TOP 40 Comments
  • Brightcove / Eng

    Brightcove Eng

    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.
    Jan 14, 2019 4
    • A more personalized plan shouldn’t mean accepting decreased risk. OP is young and needs the stock exposure so their money can grow.
      Jan 14, 2019
    • New / Eng

      New Eng

      Structural engineer switching to data science.
      Index funds are good only if you are buying the whole market not just a segment. Stick to sp500 or total stock market index funds. Every time the market drops you buy more stocks! Think of it as a sale;) You will probably sell this stock in 40 years so the SP500 will probably be 10-16x from now! If you want to look at a number look at how many stocks you own from the index fund.. and multiply it by 10-16x the current price. That ought to make you smile!
      Jan 14, 2019
  • Zillow Group supafupa
    At 24 just raise your contribution and then stop looking at it.
    Jan 14, 2019 6
    • Google / Eng poogers
      S&P 500 is fine, yes, or else something like VTSAX if you want small cap exposure. Also consider allocating some to international markets; I put 30% in VTIAX. Some argue that the American markets provide enough international exposure but I don't really buy that argument.
      Jan 14, 2019
    • Wayfair / Other BusIntel10
      Play the recession and buy VXX
      Jan 14, 2019
  • Microsoft ok47
    Don't worry. Sit back and enjoy the roller coaster ride. It will eventually go up in the long term in 10-20 years
    Jan 14, 2019 1
    • Google / Eng poogers
      Tell that to Japan.
      Jan 14, 2019
  • Paychex CODE2040
    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.
    Jan 14, 2019 9
    • Paychex CODE2040
      Yes I’m serious. I came to the US and joined this company. I’ve no idea about what is 401k. I was told about it when ai first joined but since it’s for long term (59y) I was never told if I can transfer it when I go back home so I did’t do it yet and I won’t until I know the answer. And no I’m not from India.
      Jan 14, 2019
    • You don’t need to transfer the account anywhere at maturity.

      Many brokerages will wire funds anywhere in the world.

      Some even allow ATM access
      Jan 15, 2019
  • eBay iATK32
    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)
    Jan 14, 2019 0
  • Amazon ytg6t
    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.
    Jan 14, 2019 4
    • OP
      Really so you’re even buying stocks now? So with every paycheck after bills all your money goes to stocks? Wow
      Jan 14, 2019
    • Amazon ytg6t
      Yeah I'm buying stocks. 100%. But then I already have that 12 months of expenses saved in short term bonds so if I lost my job and shit I wouldn't need to sell the stock for at least a year so I feel somewhat safe.

      Now is the best time to buy stocks. Might go down another 30% and I'll buy all the way down. One day it'll go back up.

      Buy low, sell high!
      Jan 14, 2019
  • Credit Karma Vlad Putin
    Put your 401k in MU for easy returns. Set and forget! Also check out r/wallstreetbets for the best investing advice. You’re welcome!
    Jan 14, 2019 2
    • Zillow Group supafupa
      OP in 2 years.
      Jan 14, 2019
    • OP
      Why don’t I just put 100% in Coinbase?
      Jan 14, 2019
  • Google / Eng yogi bear
    lol, you still have ~40 years until you can access you money in 401k without penalty, just chill the fuck out, if there is any investment that doesnt go down any fool could be billionaires.
    Jan 14, 2019 0
  • Google / Eng

    Google Eng

    Top Contributor or GTFO
    Just buy a target date fund and forget about it for 40 years
    Jan 14, 2019 0
  • AQR DVGQ05
    Always diversify.

    Even though you put your money in ETFs, you only picked tech ETFs. This means your portfolio is highly correlated to tech stocks. While that has been a successful strategy recently, it does mean that your retirement portfolio is at the mercy of tech stocks which didn't work so well in 2000.
    Jan 14, 2019 0


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