401k managing tips/help
noob when it comes to finances so please excuse my lack of knowledge wanted to get opinions on aggressive vs conservatives investment options offered by Fidelity I'm sure I'll get advice on not managing my own 401k but would like to gets tips/thoughts on that as well TC: 200k 3 yoe
The longer you have until retirement the more aggressive you can/should be. So, you’d have a higher percentage in domestic and international markets combined than bonds. As you inch closer to retirement you can start allocating more into bonds. I’m 35, not an expert. But I have something like 60% domestic 15% international 25% bonds. I’ve recently gotten a financial planner to help with these things. Waiting to actually meet with him.
Simplify your life and leave it to the professionals. Use a 3 fund portfolio with an asset allocation that you are comfortable with. Check bogleheads.com for more info.
You have plenty of time and starting tour career. Go aggressive index funds that have low expense ratio and diversify over 3 funds taegetting the broad market. Then auto invest and dont look at it for a decade. Seriously, ull see tesla jump up and down and want to get in but tour better off having a solid base and invest small amounts of money for those lotto tickets
I mostly stick to bonds that consist of short term treasury securities. Those bonds are yielding 7-8%. 3% of 401k is in money market funds; again cause of yield and I like to play around Super conservative cause I know S&P 500 not going to go any higher than it is. Upside potential is low, downside potential is high.
While i dont disagree with owning some bonds, s&p especially vanguard funds are diversified enough