dopetalk
General => General Discussion for Everybody => Topic started by: DiCaprio on May 27, 2016, 08:26:31 PM
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Was just seeing if anyone knew anything bout this stuff. I found out my 401k money is getting put into the TOR retiremant 2055 mutual fund. That name may not be exact. They say its a high risk fund since Im young.I can take over my picks but Id have to constanly watch it. Anyways, any suggestions?
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No one can be precise without the actual plan name and name of the financial firm that it is run by.
The dated (re:'2055') funds denote a year near when you reach full retirement age, FRA.
Such a fund invests in higher risk (and higher return) when you are younger and can assume more risk.
Which is what you want ! (not talking Mexican Goldmines).
As you get older it will move investments to less risk (less reward), to preserve ... not grow... your nestegg.
These type plans can be a stable way to manage your 401k, until you feel more confident in this area.
One idea I used was like this
1. Think the market will crash ala 2007 ? Put funds in a 2010 account, for safety.
Near FRA, less risk.
2. Think the market will surge like 2009 - 2015 ? Put funds in 2055 or 2065 account !
Far from FRA , more reward !
Jethro
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But if stocks crash in 07 why would I put my money at a time when its not clear the market will recover? What do you think about a blue chip stock? Those are said to be companies that no one sees ever going down, correct? Like Amazon or Google. Ill get the exact company name and retirement plan and post it tomorrow.
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Sell mutual funds, buy real estate.
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How do I do that if I dont have thousands?
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Well... I guess you can't... I've bought properties as cheap as 3k. It was a piece of land. I ended up selling it for 11k I believe it was... got a 5 year note with 10% interest. Check out your local tax foreclosure auctions.
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OP RE:" Why put money ... in 2007 "
Because if you have a 401k , the money is in/going-in anyway.
So put it in low/no risk. Which is exactly what I did.
I lost nothing in the "crash" that turned 401k's into 201k's.
"How do I know it will later rise/come-back ?" Answer: 'You don't'.
But after seeing the DOW at 6,000 at some point even I could see it was recovering.
The DOW is now near 18,000.
The fear kept me from getting back in at the market lows, this mistake
kept me from a lot of gains on the ride back up to where we are now.
This is called trying "to time the market". Nobody can do it reliably !
The best bet is "Buy an S&P Index Fund" it mirrors the S&P ,this will beat
99 percent of the paid brokers/advisors.
"Why not buy blue chip ?" Yes, they are safer/stable.
But they will not earn much. . . because they are stable.
They would be a safer place to put your money when you are old;
and have a nice pile of cash to preserve. (I'd go Govt. bonds at that time)
Also read as much as you can in the field.
In the end you will be the one who must live with the results.
Jethro
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P.S. to OP
Your fund choices are prolly like most others, usually a few marginal choices,
perhaps a few others. Little real choice is available in most plans.
You do not have the choice of individual Blue Chips. To do that you would need to
open a IRA/private account with a big company.
However this would not be "before income tax" money ;
and you would not get the "company match", if any.
The precise account/fund name and company that handles your account will not help me much because
I do not have access to their graphs that you do as a member. These are not mutual funds that are
generally among the choices of the 'general investors' in the market.
Especially 'TOR' funds. ('Time Of Retirement' ?)
What matters is how much they charge (percent) to manage it,
and you really have no choice. Your employer chose it for you.
Vanguard and Fidelity are a lower percentage than most.
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Correction:
IRA is pre-tax, but only up to @ $6,000.
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401k is tax free now, tax free growth, but taxed upon distribution.
Roth IRA is taxed money in, tax free growth, and no taxes upon distribution.
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Invest in Trump Steaks. Very presidential, can't lose.
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So is a TOR a place I should stay at in your opinion? And can you elaborate more when one was talking about blue chip stocks. What did you mean about having to go through a company? I cant just buy amazon stock? But what I got from you is that you just gotta shoot and pray. I mean, gather the best info you can, then, shoot and pray. Right?