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<blockquote data-quote="Babagounj" data-source="post: 272891" data-attributes="member: 12952"><p>The best part of a 401K plan is that besides money you are investing in time.</p><p>Depending on how long you have until retirement, time is your best friend. What I mean by that is the stock market goes up and down constantly, but over the long run your investments will continue to grow .</p><p>For someone just starting out I would suggest that you keep all your money in 1-2 funds . { there are handling fees to pay ( small amount for each fund ) that can add up quickly if you add to many funds }</p><p> Since your main goal is growth look at what risk factors there are and decide how much risk you can handle. If you want to be safe then Bond or Stables Funds, but growth is really slow. If you really want growth then its stock funds. Historically the best place for investing.</p><p> Start out small [ depends on how much you can afford to invest ] say 5-10 % .</p><p></p><p>Please don't be checking your account daily It will drive you crazy.</p><p>Review your account every couple of weeks, set a dollar amount that you must reach before making any changes to your account.</p><p></p><p>The stock purchase plan is good, but it must be a long term plan. Again start off slow, just a small amount ( what you can afford ) But be warned changes to the plan can only be done once per quarter.{ I had a co-worker who decided to increase his weekly deduction to the max. but he thought only for a few weeks, and then switch it back. Instead he was at the max for the whole quarter, which on some paychecks he took home less that 10 dollars.} </p><p>The best way to make this grow is to take the dividend re-investment option. All dividends paid to you are automatically used to buy more stock, but at the current market price. Again time is a friend here.</p><p>Also when buying or selling this stock, Melon Bank uses a not the price of the moment ,but a combined price of the day. And when selling they can take a week to move funds to you.</p></blockquote><p></p>
[QUOTE="Babagounj, post: 272891, member: 12952"] The best part of a 401K plan is that besides money you are investing in time. Depending on how long you have until retirement, time is your best friend. What I mean by that is the stock market goes up and down constantly, but over the long run your investments will continue to grow . For someone just starting out I would suggest that you keep all your money in 1-2 funds . { there are handling fees to pay ( small amount for each fund ) that can add up quickly if you add to many funds } Since your main goal is growth look at what risk factors there are and decide how much risk you can handle. If you want to be safe then Bond or Stables Funds, but growth is really slow. If you really want growth then its stock funds. Historically the best place for investing. Start out small [ depends on how much you can afford to invest ] say 5-10 % . Please don't be checking your account daily It will drive you crazy. Review your account every couple of weeks, set a dollar amount that you must reach before making any changes to your account. The stock purchase plan is good, but it must be a long term plan. Again start off slow, just a small amount ( what you can afford ) But be warned changes to the plan can only be done once per quarter.{ I had a co-worker who decided to increase his weekly deduction to the max. but he thought only for a few weeks, and then switch it back. Instead he was at the max for the whole quarter, which on some paychecks he took home less that 10 dollars.} The best way to make this grow is to take the dividend re-investment option. All dividends paid to you are automatically used to buy more stock, but at the current market price. Again time is a friend here. Also when buying or selling this stock, Melon Bank uses a not the price of the moment ,but a combined price of the day. And when selling they can take a week to move funds to you. [/QUOTE]
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