Home
Forums
New posts
Search forums
What's new
New posts
Latest activity
Members
Current visitors
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
Brown Cafe UPS Forum
UPS Discussions
newbie 401k?
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="browniehound" data-source="post: 308161" data-attributes="member: 4653"><p>My uneducated opinion:</p><p> </p><p>25% in a bond fund is about 25% too much. Ok, at least 20% too much. Get out of bonds immediately. Believe it or not, they can loose money.</p><p> </p><p>We are in a down market and you are 22 years old. Whatever your budget can afford put it you 401k and BUY, BUY, BUY stock funds. S&P 500, 400, Russell 2K, ect.</p><p> </p><p>Have you ever seen a model on dollar cost averaging? Basically it means investing the same amount of money over a long period of time. </p><p> </p><p>With dollar-cost averaging, you benefit in the long term by investing when prices are low (like right now, when you are 22), but don't do as well when the market is rising. As the market drops the same $dollar amount is buying more shares of stock than before. Eventually the market will rebound and you will benefit. It has the opposite effect when the market is rising sharply( you will be buying less shares with the same dollar amount) , but its good overall long-term.</p><p> </p><p>This will probably happen a few times over your lifetime, so again invest in stock funds.</p><p> </p><p>Don't take our word, look at the facts. I think though, there is sound advice here from everyone. </p><p> </p><p>Good luck, KIDO!</p></blockquote><p></p>
[QUOTE="browniehound, post: 308161, member: 4653"] My uneducated opinion: 25% in a bond fund is about 25% too much. Ok, at least 20% too much. Get out of bonds immediately. Believe it or not, they can loose money. We are in a down market and you are 22 years old. Whatever your budget can afford put it you 401k and BUY, BUY, BUY stock funds. S&P 500, 400, Russell 2K, ect. Have you ever seen a model on dollar cost averaging? Basically it means investing the same amount of money over a long period of time. With dollar-cost averaging, you benefit in the long term by investing when prices are low (like right now, when you are 22), but don't do as well when the market is rising. As the market drops the same $dollar amount is buying more shares of stock than before. Eventually the market will rebound and you will benefit. It has the opposite effect when the market is rising sharply( you will be buying less shares with the same dollar amount) , but its good overall long-term. This will probably happen a few times over your lifetime, so again invest in stock funds. Don't take our word, look at the facts. I think though, there is sound advice here from everyone. Good luck, KIDO! [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
Brown Cafe UPS Forum
UPS Discussions
newbie 401k?
Top