Where to invest 401K money?
What's your strategy? Put all in target date fund? Market index fund? or something else? how to invest - All in one or split?
Don’t do target date funds. Bond/stock splits were a thing in the 80s & 90s when bond rates were 10-18%. Index funds are your friend. Don’t get pulled into the hype of “emerging markets” either. It’s a gamble on which will actually come out ahead.
Thanks. Good point on bond. Bonds are making a comeback in the current environment but how long would that last is anyone's guess. For the emerging market, I do want to rely less on the US market. If you read Ray Dalio's book (a great one), we might be seeing the end of USA empire at some time and that's possibly during our life time. So hedging the risk might be a good idea.
Yeah. You could try a “total world” fund to average out the risk/reward outside the USA. USA is going down, but the question is how much will it go up before/if it goes down. Could be 10 years, 40 years, 100 years. Who knows.
60 40 US International index funds. I don't believe in bonds if you are young on your 401k.
Who needs 401K!! I have been sending my money to the Nigerian prince so he can send me his inherited wealth. One of these days I will retire.
Market indices, 65/35 split between US and Intl. Not interested in a bond component yet, so I skipped the TDF. Look for low-fee funds that meet your target allocation. Don't worry about the number of funds you're invested in.
Investing in international has always been a loose-loose situation. If US market goes up , international goes up but by few points less , if US market goes down, international goes down by higher percentage point. May be future will be different ..
That's the thing. "may be future will be different". You don't want to play around with your 1 life in retirement. Better to shove more money and have both sides than to bet 1 side and regret. Mediocre but satisfactory return is much better than great return with rare chance of regret.
Fidelity has a product called brokerage link that allows individual stocks, I deposited a big chunk of bonus to 401k and bought a 3mo CD and some sp500 and developed market etfs. Main point cash and CDs are an option if you think the market is going down or you want some dry powder
VTI and chill, no more wasting time
Vti or voo or vug?
Vti voo, almost identical. Not sure about vug.
S&p
Good answer unless you enjoy investing and are actively following other ETFs. I personally don’t… S&P in the long run guarantees 5-10% annual returns, you just need to be here for the long game.
Do you mean SPY?