401k help?

im gonna start my 401K at 5-7% im 29 not yet at top rate for driving...what funds should i invest in? im green when it comes to this...i only wanna put $$into 1-3 funds to start...can anyone help?

[HazMatMan]

Originally Posted by help

im gonna start my 401K at 5-7% im 29 not yet at top rate for driving...what funds should i invest in? im green when it comes to this...i only wanna put $ 1-3 funds to start...can anyone help?

Market is shaky right now, but the EAFE fund and the S&P 500 and 400 and Russell 2000, have done right by me in the last few years, but like I said the market has been shaky so please invest wisely.. P.S. I am NOT a stock broker, that is what I invested in, I am not telling you to do the same, just am telling you what I did well in.....Good luck!!

[UpstateNYUPSer]

As I stated in an earlier thread on this subject, the 401K plan has what is called the Bright Horizon Fund, which is based upon your projected retirement year (2015, 2025, 2035, and 2045). This may be a good place to invest if your are uncertain about the process. I have 20% deducted each week in to the EAFE and S&P 400, which both seem to be doing well, or as well as can be expected during this shaky time in the market.

[1989]

I got a letter the other day stating the 401K was looking for another investment manager to replace State Street becauce of the Bright Horizon funds.

[IDoLessWorkThanMost]

I wouldn't invest in the Bright Horizons personally.

I am 29 and started a year ago....putting 70% in S&P 400 and 30% in the International fund. I suggest Don't put money into too many funds. Try aggressive funds rather than stable low-interest ones. The S&P, EAFE, Russell 2000, REIT, are all more aggressive and can be higher yeilding than the stable, govt, etc. The details on the Teamster 401k web site has detailed .pdf files you can download and view to get a better basic understanding of what each fund entails and it's pros/cons.

[filthpig]

Originally Posted by help

im gonna start my 401K at 5-7% im 29 not yet at top rate for driving...what funds should i invest in? im green when it comes to this...i only wanna put $ 1-3 funds to start...can anyone help?

talk to a financial guy, but i've had good results in rough times with the bond index funds. When the economy is doing well, i'm in the s&p fund, with some in the bond fund for safety. just remember to keep up with the market, because if you don't you'll not only be losing on what you have you'll also continue to put money in the loser if you don't change your election.

[HazMatMan]

I'm chilling in the Bond Market Index for now until Wall Street shapes up again.. Dow was down on Feb 4th 2008 over 100 points....

Originally Posted by HazMatMan

I'm chilling in the Bond Market Index for now until Wall Street shapes up again.. Dow was down on Feb 4th 2008 over 100 points....

Unless you're near retirement that's a poor investment idea, now's the time to be buying more of what you already have a better prices.

[beentheredonethat]

Originally Posted by help

im gonna start my 401K at 5-7% im 29 not yet at top rate for driving...what funds should i invest in? im green when it comes to this...i only wanna put $ 1-3 funds to start...can anyone help?

My help is to tell you to do your own research and invest in what you think is a good fund. Not sure about the Teamster\UPS 401K fund, but in the 401K for non union we have an option to do a self managed account. There's a few limitations such as keeping a minimum of 5K in the regular choices. With the self managed you can buy pretty much any mutual fund, ETF (Exchange Traded fund) or stock. I'm pretty sure they still don't allow you to buy puts\calls yet. With the SMA, it pretty much opens your choices to just about anything. I like'd this method myself since there seems to be a lot of other funds out there that do better then the limited choices offered.

[satellitedriver]

Originally Posted by beentheredonethat

My help is to tell you to do your own research and invest in what you think is a good fund. Not sure about the TeamsterUPS 401K fund, but in the 401K for non union we have an option to do a self managed account. There's a few limitations such as keeping a minimum of 5K in the regular choices. With the self managed you can buy pretty much any mutual fund, ETF (Exchange Traded fund) or stock. I'm pretty sure they still don't allow you to buy putscalls yet. With the SMA, it pretty much opens your choices to just about anything. I like'd this method myself since there seems to be a lot of other funds out there that do better then the limited choices offered.

You can do the same in the Teamster 401k self managed account, but it is for someone who knows something about investing, IMHO.
I would suggest a novice just put their money into the S&P 500 fund ,while they are learning about investments.
Dollar cost averaging into the market allows you to buy low when the market is down and conversely buy when it's high. The average return of the S&P, over time, has been in the 10 to 11% range.
The S&P is the benchmark that all mutual funds try to beat and 80% of them fail to over the long run.
ETF's/ REITS/Shorts/Pulls ect... are not for the inexperienced.
Having said that, there is money to be made out there.
Please, do your due diligence(fancy way of saying read a lot of boring financial data) before you invest.

[HazMatMan]

Originally Posted by 89upser

Unless you're near retirement that's a poor investment idea, now's the time to be buying more of what you already have a better prices.

Not even close to retiring...

[HazMatMan]

Originally Posted by HazMatMan

I'm chilling in the Bond Market Index for now until Wall Street shapes up again.. Dow was down on Feb 4th 2008 over 100 points....

Dow is down on Feb 5 over 300 points..

[satellitedriver]

Originally Posted by HazMatMan

Dow is down on Feb 5 over 300 points..

BUY,BUY,BUY!!!!!!!!

[LeddySS98]

I started mine right at 2 years ago, and put it in 4 different funds... As to date I've had the best luck with the EAFE international fund, and my losing horse is in the Russel 2000 fund.

My options... If I were to change the 2000 fund over to the S&P500 and start investing in that fund... does the current 2000fund money get moved over into the 500 as well... am i looking at penalties here...better to just ride it out at this point....

[FAVREFAN]

Originally Posted by satellitedriver

BUY,BUY,BUY!!!!!!!!

The great W.B. says....."When everyone is panicing, you should buy and when everyone is buying, you should panic." You nailed it. Put everything in on these dips. Just my opinion.

[FAVREFAN]

Originally Posted by LeddySS98

I started mine right at 2 years ago, and put it in 4 different funds... As to date I've had the best luck with the EAFE international fund, and my losing horse is in the Russel 2000 fund.

My options... If I were to change the 2000 fund over to the S&P500 and start investing in that fund... does the current 2000fund money get moved over into the 500 as well... am i looking at penalties here...better to just ride it out at this point....

The S & P 500 and Russell 2000 are long term investment vehicles. Don't be pulling out on the dips. You should be dollar cost averaging them right now. Stick with them long, long term. You'll get it all back and much more in time. Might be a long while with the slowing economy but you will profit.

[UpstateNYUPSer]

As you can see from the above posts, you can ask 10 different people and you will get 10 different, but all valid, opinions. The only person who will know how much to invest and what options to invest in would be you. Only you know if you are aggressive or conservative, if you are able to withstand the constant roller coaster movements of the Dow, and if you are willing to stay in for the long haul. I would read all of the replies, take from those with whom you feel comfortable, couple that with your own gut feelings, and start your 401k, and don't look back. Good luck.

(BTW, I didn't know about the concerns with the Bright Horizon Funds or I wouldn't have suggested them. They seem ideal in that you determine your projected retirement year and invest accordingly.)

[brownmonster]

And that, my friend, is the biggest problem with 401K's as apposed to traditional pension plans. The average Joe doesn't have a clue about investing and he is responsible for securing his retirement. You can't take money out af a traditional plan to pay off a car or borrow a grand.

[satellitedriver]

Originally Posted by brownmonster

And that, my friend, is the biggest problem with 401K's as apposed to traditional pension plans. The average Joe doesn't have a clue about investing and he is responsible for securing his retirement. You can't take money out af a traditional plan to pay off a car or borrow a grand.

$01k's (not a typo) are better than most pension plans, if one cares about their financial future.
It's your money and you should be able to access it/control it/ and take it with you to another workplace, if need arrives.
I guess the traditional plan protects us from our own stupidity.
The let "Big Brother" take care of me mentality,IMHO,is the biggest problem in personal financial planning.
If the average Joe doesn't have a clue, he/she should invest their time in learning some very simple basics, and, if they chose not to try and secure their own financial future, well, "stupid is as stupid does".

[FAVREFAN]

Originally Posted by satellitedriver

$01k's (not a typo) are better than most pension plans, if one cares about their financial future.
It's your money and you should be able to access it/control it/ and take it with you to another workplace, if need arrives.
I guess the traditional plan protects us from our own stupidity.
The let "Big Brother" take care of me mentality,IMHO,is the biggest problem in personal financial planning.
If the average Joe doesn't have a clue, he/she should invest their time in learning some very simple basics, and, if they chose not to try and secure their own financial future, well, "stupid is as stupid does".

How 'bout it. The average moron will spend more time programming his HDTV on any given weekend than on his financial future. I'm counting on myself and God. Not UPS or our pathetic war hungry government. You have to plan your own long term success. JMO.

[kenny green]

I am so discussed with our 401K. Why doesn't such a big employer such as our put on some simple imformitive workshops. It like we are to dump our future savings into this huge money pool and hope that one day it will have made money. I want some way to track each fund daily. I was losing in the Russell and the S&P's so I moved my funds to the Bond fund, hoping to stop the blood loss and now it appear as if I'm losing money there also!! Some help me ,,,what am I doing wrong?

[Baba gounj]

First off STOP watching your 401K daily. This will only cause you to go nuts.
Rule # 1 is that time is your best friend.
What I mean is that over time as the markets go up and down you will be getting shares at different costs ( low cost= many shares, high costs = fewer shares ) it will average out over many years.
Just pick one or two fund groups that you think will improve in the coming months or years. Put your money there , then sit back and watch what happens. Watch for trends, be prepared to switch funds when you think the time is right.
No one is absolutely sure about where the market will be going at any given time, so the best plan for you or anyone is to make up your own goals, and wait.

(ps I still make some wrong guesses, but every move made is worth the knowledge I've gained )

[FAVREFAN]

Originally Posted by kenny green

I am so discussed with our 401K. Why doesn't such a big employer such as our put on some simple imformitive workshops. It like we are to dump our future savings into this huge money pool and hope that one day it will have made money. I want some way to track each fund daily. I was losing in the Russell and the S&P's so I moved my funds to the Bond fund, hoping to stop the blood loss and now it appear as if I'm losing money there also!! Some help me ,,,what am I doing wrong?

What are you doing wrong? Exactly what you are doing/did is wrong. Don't be moving money around until you're within 5 years of retiring. If your in bonds now, you won't be buying into shares of the S&P500 while they are low. So I guess your plan would be to go back into the indexes when they are high? It is buy low sell high not buy high sell low. S&P500 will get you 8-10% per year average over any ten year period. Stick with it and like others advice here says, time is your friend. Don't over manage it.

[mountaingoat]

1. Look at your time horizon. At 29, you probably won't need the money until you're 60 or 65. That gives you 31-36 years. That's your time horizon.
2. That being said, you're in this for the long term. Time is on your side and you can afford to put your money in long-term investments. This means equities.
3. Give yourself a good mix of foreign stocks, domestic stocks, and small and large cap stocks. With our choices, that's Russell 2000 (small cap), S&P 500 (domestic large cap), and EAFE (foreign stocks).
4. For the next 20-25 years, you should be keeping it in a long-term capacity.
5. There's an option to rebalance every 90 days. Do it. Set your percentages for each fund (say, 33% in each), and rebalance it every 90-180 days. This "sells" your top performers, locking in those gains that you made, and "buys" your low performers, getting them at a discount.
6. Did I mention long term?
7. Look at your statements once a month. Any more than that, and you will be caught up in the emotion watching as some of your funds dip lower. This will happen. You may lose 20% (or more), but you will be up 20% the next year, and maybe 18% the following year. And, when you're down 20%, that's like buying shares in that fund at a 20% discount. Who doesn't love a sale?
8. When you start getting closer to retirement (5-8 years), post again to see how you should start shifting your portfolio.

Cheers!

[FAVREFAN]

Originally Posted by mountaingoat

1. Look at your time horizon. At 29, you probably won't need the money until you're 60 or 65. That gives you 31-36 years. That's your time horizon.
2. That being said, you're in this for the long term. Time is on your side and you can afford to put your money in long-term investments. This means equities.
3. Give yourself a good mix of foreign stocks, domestic stocks, and small and large cap stocks. With our choices, that's Russell 2000 (small cap), S&P 500 (domestic large cap), and EAFE (foreign stocks).
4. For the next 20-25 years, you should be keeping it in a long-term capacity.
5. There's an option to rebalance every 90 days. Do it. Set your percentages for each fund (say, 33% in each), and rebalance it every 90-180 days. This "sells" your top performers, locking in those gains that you made, and "buys" your low performers, getting them at a discount.
6. Did I mention long term?
7. Look at your statements once a month. Any more than that, and you will be caught up in the emotion watching as some of your funds dip lower. This will happen. You may lose 20% (or more), but you will be up 20% the next year, and maybe 18% the following year. And, when you're down 20%, that's like buying shares in that fund at a 20% discount. Who doesn't love a sale?
8. When you start getting closer to retirement (5-8 years), post again to see how you should start shifting your portfolio.

Cheers!

Pretty good post.