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Discussion Starter · #1 ·
Hi everyone,

I've been working for my company long enough so I started my first 401k this week (paying what the company will match plus a little extra). I think that right now is a good time to invest. Prices on bonds and stocks are low, so by the time they go back up, I'll make a good return. I'm 22 years old and in college. I have been doing a lot of reading online about investing and financial planning. Does anyone had any general advice they could give me? Thanks! :)
 

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Wait until after the holiday shopping season to consider stocks. Most retail stocks are dropping. If your 401 K has a fixed triple tax free (or double) go there for now.
 

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Doomsayer
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Hi everyone,

I've been working for my company long enough so I started my first 401k this week (paying what the company will match plus a little extra). I think that right now is a good time to invest. Prices on bonds and stocks are low, so by the time they go back up, I'll make a good return. I'm 22 years old and in college. I have been doing a lot of reading online about investing and financial planning. Does anyone had any general advice they could give me? Thanks! :)
I am sorry to hear it.
 

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Being Prepared
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Of course the Obamanators were having hearings a couple weeks ago about confiscating 401K's and giving the money to the Social Security Admin for managment.

Can't believe this could happen in America.

Spend your 401K money on gold and ammo.
 

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My best advice is to spend that money elsewhere, you can get a better return on buying food or ammo.

At least wait till spring, the stock market is not going to all of a sudden go way up, you will have plenty of time to get in on this game if you still want to later.
 

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Proud "Neo-Confederate"
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I surely wouldnt waste any money on a 401k right now. They intend to confiscate them and give it to SS. I Dont know if they will get away with it but why take a chance?
 

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Discussion Starter · #8 ·

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Deo VIndice
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Just curious...what % does your company match? Mine only does 6%
 

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I'd highly recommend at least contributing to get your company match. Since you're on this board, you realize that there's no guarantee about what will happen tomorrow. However, there's also the possibility that we could all die of old age and we need to prepare for retirement. If you accept that as a possibility, a 401k with a company match is a great thing to put money into.

As for what to put your money into, I'd look for something like an S&P 500 index fund and some type of international fund. You may also want to look at a target date fund as well. Also, if you have a Roth 401k, I believe that is a better choice over the standard 401k. As you learn more, you may decide to invest differently, but this will be a good start.
 

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Proud "Neo-Confederate"
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I'd highly recommend at least contributing to get your company match. Since you're on this board, you realize that there's no guarantee about what will happen tomorrow. However, there's also the possibility that we could all die of old age and we need to prepare for retirement. If you accept that as a possibility, a 401k with a company match is a great thing to put money into.

As for what to put your money into, I'd look for something like an S&P 500 index fund and some type of international fund. You may also want to look at a target date fund as well. Also, if you have a Roth 401k, I believe that is a better choice over the standard 401k. As you learn more, you may decide to invest differently, but this will be a good start.
I have to agree with one point you made, and that is if you do go with a 401k the roth 401k is a better choice, according to Dave Ramsey anyway.
 

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Discussion Starter · #18 ·
Also, if you have a Roth 401k, I believe that is a better choice over the standard 401k. As you learn more, you may decide to invest differently, but this will be a good start.
As part of my package, I also have a Roth IRA. My company doesn't offer Roth 401ks. Everything I have been reading about investing is very interesting. I would like to get more into it in the future after I graduate and get my first "adult" job.
 

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I wouldn't get too crazy.

You're only 22. A *LOT* is going to happen between now and when you're eligible to pull money out. Be sure you don't need that money now, because it will be pretty much frozen for a long time.
 

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Surprised to see this thread here especially since I joined the forum to learn more about different firearms in my research for CA compliant arms & ammo, but since I'm a Series 7 and 66 registered & licensed Financial Advisor for a New York based private/mutual firm (without directly spamming/advertising but the company is 163 years old and currently the highest credit rated firm in both the financial & insurance industries and one of the few companies today actually making net profits), I'll chime in.

If you're going to contribute, always take up to the company match. Since 401(k)'s as a retirement vehicle do not have guarantees on your principal, for the short term, any contributions you make, if I were in your shoes, I would put it into the plan's default money market account fund so you can take advantage of the minimal interest gains short term. Your plan's administrator or the Financial Advisor/401(k) company will advise you otherwise because they do not get paid on money that is invested in money market accounts. It's in their best interest to get you to invest in anything outside of a money market fund since that is the only way they can make money based on your contributions.

I wouldn't even touch securities mutual funds for the next 3-6 months short term. With the derivatives market likely to implode, good chance more companies will go bankrupt.
Hopefully, if the US and the global economy can weather the next 6 months, and the market shows confirmation of a reversal, then you can start dollar-cost-averaging portion by portion the contributions you have sitting in that money market fund to mutual funds that are more aggressive considering you have quite some time before reaching retirement.

Too much volatility in the market now and the only people making money right now in the stock market are those who have the experience, time, & Level 2 trading tools to day trade.

If it says anything, considering I'm a Financial Advisor and although I hope for the best that the market will recover for the long term, there's a reason why I'm here and why I'm taking the steps to cover all my bases. I hope for the best, but prepare for the worst especially now that I have a brand new CA home and family to protect.

There are guaranteed accounts available outside of an employer sponsored 401k plan, but since you are specifically asking about 401k's, I won't discuss other IRA / Investment options.

Also, with a Democratic President-elect and a Democratic congress, who knows what these guys will pass. If future tax brackets raise, there maybe better options for you.

Good luck.

Disclosure: Statements I make here are not to be construed and/or taken as fact. Consult your own professional advisors and/or CPA for financial and/or tax related advice.
 
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