PIMCO total return - avoid!
Vanguard target retirement trust - avoid!
You have no idea what is going to ahppen to you in the next forty years - good things I hope - the money you save now for "retirement" is not crucial to your future. It's a start a good habit but not that significant. As i told my younger employees - you can marry more money in ten minutes than you can earn in a lifetime! Seriously - are you likely to be working for this company in ten years or twenty years from now? At some point you're going to yank this money out from the 401K and invest it in your new emplyer's 401K plan. The reaon you don't need the STable Value fund (cash paying close to zero interest) and the BOND fund is that you are not in the business of preserving capital becuase you're retiring in two years time. Those funds are for old farts like me. And the "Retirement Target crap? Really - as if the experts at these mutual funds have a clue about the future. Did they see Facebook and Twitter coming? No - they invested in Koday and other fine companies that are disappearing. Split the money into four parcels for the other funds and go enjoy life!
For a retirement fund, Vanguard Institutional (VINIX?) without a doubt due to their fees. It's the S&P 500 Index and you can't beat the low fee. Make sure you find out if your company is charging you a fee to maintain it as well as the Vanguard fee of .04%. Figure in any matching. It could be cheaper to open an account at Scottrade or the like if your company has a fee. Do you plan to retire from them, do they have exit fees, etc?. Google do target date funds miss their mark? I've had VINIX for many years and it's hard to beat.
I'd go with Vanguard Institutional Index. Diversified. Inexpensive. Not too conservative. Vanguard is a great company.
So is T. Rowe Price but I wouldn't choose a value fund.
Target date retirement funds do seem like an easy no-brainer and they are for many people but I don't like them for people who expect to have substantial assets at retirement. In my opinion, at least for myself, they are too conservative in the later years. I certainly will change my asset allocation as I age, but I will still keep a good portion of my nest egg in growth stocks.
You are asking the wrong question. First ask yourself why? Why are you investing in the first place? What are your financial reasoning's behind it? What is your goal. That is the first question you should ask. After that learn what you need to in order for you to do it yourself. Just handing your money over to someone else is not a good plan at all. If you don't care about your money then it doesn't matter who you give it too.
But if you are here asking... then you might be better off learning to do it yourself.
Start simple, Dividend paying stocks with a good history of paying its shareholders is a good safe place to put your money while you are educating yourself.
When you feel competent enough then try some other trading, but stick to the safe easy stuff first.
AND.... Always remember no-one has more interest in your money than you.
I'd go with TR Price mid cap value fund (TRMCX) to jazz it
up a little. Also Vanguard Institutional Index Fund. Both highly
rated by Morningstar rating system.
If simplicity is what you're after and an appropriate target-date mutual fund is offered, that's the best choice for a start. You can always reallocate your investments later if you choose. Grab a copy of "Mutual Funds For Dummies" from the library when you have a chance - it's a really good book that will tell you the basics about funds. Well worth your time.
I vote for growth oriented stocks.
If you want a stock tip: Consider Facebook (FB) According to the "experts" the mobile market will be huge. FB is positioned to make a ton. Their stock price is expected to increase 50 to 300% in the next couple of years. (I bought some, but I have been wrong before)
Invest it in a charity that makes a difference to thousands or millions. If you can save 401k at just 22 years old, you can afford to share some with the world and make a difference to someone else's life. Much better investment, on your personality.
Buy a fighter jet! :D
Video Games, Food, House, Charity, Save Up.Keep Money To Spend When Needed.
I am twenty two years old and have no idea what to invest my 401k in. Can anyone help me?
Galliard stable value acct
PIMCO total return
Vanguard target retirement trust
American century value acct
Vanguard institutional index
T. Rowe price midcap value acct
Eagle small cap growth
American funds euro pacific growth
put 25% in each of four favorites (index, euro, stable value and century value) after a year, kick out the lowest one and put it into a different one. low man out after a year.
Open account with a Bank and deposit the amount. Plan leisurely. Anyhow keep 1/4th as long term reserve.
cool
