ProfessorPlatypus wrote:I’m 24, making $50k, I have $25k sitting in my savings/checking accounts, and I want to start investing my money.
My employer unfortunately uses ADP as their 401k provider. I've heard bad things about them, but my company will match up to 4% if I contribute 6%. So my plan is to contribute 6% every year, and have a maxed out Vanguard Roth IRA on the side. Does this sound like a good idea?
I also need help choosing which funds to invest my 401k into. Here are my options:
-0.46 PTTRX PIMCO Total Return Fund - Class A
-0.18 SVSPX SSgA S&P 500 Index Securities Lending Series Fund - Class IX
Because I’m young, I don’t mind taking on a decent amount of risk. But I also know that the market has been skyrocketing lately, and it seems like a bad time to get into investing. Let me know your thoughts.
Yes, your investing amount plans sound very good.
You may want to do a bit of reading in the Bogleheads' wiki.
Nutshell - keep 6-12 months of expenses back as cash somewhere. Determine what AA you desire (if you don't mind risk, lotsa equities are okay.) Look at ALL your investments (both retirement and nonretirement) as part of a whole pie.
In your 401k, the only two funds that I would use in my 401k are shown above. The "time" to get into investing is "anytime". You can't foretell the future.
So by example only... Let's say you decide that an 80/20 (stock/bond) split is the AA you want. Best to keep bond funds in retirement accounts, so "fill out that space" with as much of your 20% bond allocation as you can, then add in the stock amount. In your taxable investment account, you'll try to use efficient stock (preferably index) funds. If you need bond funds in your taxable account, consider tax-free bond funds.
HTH to get you pointed in the right direction, welcome to the forum and congratulations on getting started now - I waited until I was 42 and didn't know what I was doing (?) until finding the Bogleheads in 2009.