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401k help?
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<blockquote data-quote="mountaingoat" data-source="post: 305588" data-attributes="member: 1250"><p>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.</p><p>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.</p><p>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).</p><p>4. For the next 20-25 years, you should be keeping it in a long-term capacity.</p><p>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.</p><p>6. Did I mention long term?</p><p>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?</p><p>8. When you start getting closer to retirement (5-8 years), post again to see how you should start shifting your portfolio.</p><p></p><p>Cheers!</p></blockquote><p></p>
[QUOTE="mountaingoat, post: 305588, member: 1250"] 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! [/QUOTE]
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