401k Help! I’m dumb :(

Feb 8 35 Comments

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

401k Help! I’m dumb :(
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 TOP 35 Comments
  • New / QA
    Albеrtsons

    New QA

     Albеrtsons
    Bruh wtf. Buy DOGE
    Feb 8 5
  • 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
    Feb 8 1
    • Amazon
      O(1)Stress

      Go to company page Amazon

      O(1)Stress
      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.
      Feb 9
  • R1 RCM
    Live!

    Go to company page R1 RCM

    PRE
    Amazon
     Live!
    If I could go back to my 20s and pick, I would not pick funds. I would pick individual companies that are growing and innovating. The kind of companies that I could see continue to do the same in next five/ten years. I would pick my top choice (may be two if I have a lot of money) and invest in that. Right now, that is AMD and TSLA for me.
    Feb 8 3
  • Meta
    OuqD58

    Go to company page Meta

    OuqD58
    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!
    Feb 8 2
    • VMware
      vm..where?

      Go to company page VMware

      vm..where?
      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%
      Feb 8
    • Meta
      OuqD58

      Go to company page Meta

      OuqD58
      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.
      Feb 9
  • Amazon
    WXMs58

    Go to company page Amazon

    WXMs58
    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.
    Feb 8 1