Here is how I might allocate:
40% s&p500
10% mid cap index
05% Royce pen
20% euro pacific growth
20% pimco ttl return
05% stable value
First, compare the sales charges associated with your menu of funds. Avoid funds with high sales charges or other expenses.
Second, at age 23, you should be investing for growth, not income. I'm not going to do the work for you - but I might guess that you'll find that the two index funds in your menu are growth oriented and relatively low fee. (Read the prospectus yourself.)
Third: If you're allocating 60% of your contributions to your own employer's stock, that's too much. It's good to show loyalty, but you don't want to invest that much in any single company.
Many new investors are lured to the appeal of a penny stock due to the low price and potential for rapid growth which may be as high as several hundred percent in a few days.
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Similarly, severe loss can occur and many penny stocks lose all of their value in the long term. Accordingly, the SEC warns that penny stocks are high risk investments and new investors should be aware of the risks involved but you can even make very big money. These risks include limited liquidity, lack of financial reporting, and fraud. A penny stock is a common stock that trades for less than $5 a share. While penny stocks generally are quoted over-the-counter, such as on the OTC Bulletin Board or in the Pink Sheets, they may also trade on securities exchanges, including foreign securities exchanges. In addition, penny stocks include the securities of certain private companies with no active trading market. Although a penny stock is said to be "thinly traded," share volumes traded daily can be in the hundreds of millions for a sub-penny stock. Legitimate information on penny stock companies can be difficult to find and a stock can be easily manipulated.
First of all "wanna" isn't a word.
Second of all, everything you listed is crap. You will NEVER be able to retire putting money into those funds.
You need to read up on it, and you will find that large rich companies buy mutual funds. Because they have excess money and need somewhere to put it.
But as a human individual - you will never be able to retire in 40 years, when you factor in the cost of inflation. Learn about trading individual stocks and save money in cash with your 401k - and you can retire in 20 years instead of 40.
Take each of the funds in the plan that are not "bond" or "stable value" or have high sales charges, and divide your contributions evenly among the remaining choices.
You may be looking to keep the money invested for 30-40 years, but it is no longer realistic to think you will work at the same company that long.
As soon as you leave your job (next year or 5-10 years from now), move that 401k money into a "rollover IRA" by a "direct transfer" and invest in good mutual funds.
The reason Bill Gates made his fortune is he hitched his wagon to Microsoft's stock. Remember, he could have cashed out as his portfolio increased, kept his Microsoft percentage at 10%, but then we would never be discussing Bill Gates.
Don't know your company, but if it is profitable and well run, own more of its stock, not less.
You don't need to make this too complicated - don't think that you must have some percentage in EVERY option they give you. At your age, your investment spread should be fairly aggressive (oriented toward growth stocks). The TRW Blue Chip Growth Fund is a good core choice.
Subtract your current age from 120....in your case you get 97....so that's the percentage of your deferred compensation you should have in the most aggressive Fund (with lowest expense) available to you in your 401(k)...
Why?
Because with a 401(k) you automatically make equal dollar amount investments at regular intervals...so in the most volatile option (price jumping up & down a lot) that means you'll buy MORE shares when the price is down & FEWER when it's up...without even thinking about it!
Almost ALL of your contributions should go to the T Rowe Price Blue Chip Growth Fund, which has a high rating & a low(ish) Expense Ratio of the choices available to you...
Just seeking some advice on investing in my 401K. Im 23 years old and have been investing in it for a year. Now im beginning to really think about my future and retirement. Ive been reading up on the different election choices I have, trying to find info on the web about investing practices. For my future, in a perfect world I could retire at 55 thats what I would love to do, im hoping to be able to retire at 60 but expect to retire at 65. When I retire I want to do a little traveling but really I wanna be a active person who could still have fun with family. I love going out places, going to sporting events, wanna own a home. I wanna have fun. I would say I wanna be moderately aggressive but ultimately I wanna achieve the maximum returns possible. Where should I be putting my money as far as elections go ? How should I save and invest to achieve my retirement goals ? These are the elections I have to choose from. Im gonna put the percent beside the ones I have elected already.
Invesco Stable Value Trust Fund
PIMCO Total Return - Instl 10%
T. Rowe Price Value Fund
SSgA S&P 500 Index Fund Class E
T. Rowe Price Blue Chip Growth Fund
SSgA S&P MidCap Index
Royce Penn Mutual Fund - Inv 15%
American EuroPac Growth R-4
(company stock) 60%
SSgA Conservative Strateg Bal
SSgA Moderate Strateg Bal 15%
SSgA Aggressive Strateg Bal
