BlancoJordan wrote:Age: 25
Debt: $7,700.00 car loan at 0% interest
401K: Max out plus 30% contribution match from employer. 401K position allocation: 25% DDFIX, 25% FBGRX , 25% FUSVX, 25% JTSSX
Investment Account: Stocks and mutual funds - $22,000.00
New to the game, and want to make sure we are allocating properly. Would you invest money into ETF's or Index Funds, or keep working the stock market? If so, what are some good one to choose from?
Any tips or insight is greatly appreciated!
I would buy index mutual funds, rather than stocks or ETFs. I would look for index funds which are very diversified (to decrease risk) and which have low expense ratios (to increase net return).
It will help if you add some more information. Please just add to your original post using the edit button, so that all of your information is in one place. Please see the post "asking portfolio questions" for format.
Do you have any debt, if so what types, amounts and interest rates?
What is your marginal tax rate, both federal and state?
Do you have an asset allocation (stock/bond mix) that you want to aim for?
Will you please add the fund names and expense ratios for the funds you are using in your 401k? We don't have the ticker symbols memorized, most people won't want to look up what funds you are referring so most people won't respond.
You are using Fidelity 500 Index Fund Premium Class (FUSVX), you should probably increase your use of that fund in your 401k. It's very diversified. I don't recognize the other ticker symbols you indicated in your 401k.
What other funds are offered in your 401k, besides the funds you are now using?
Do you have an IRA somewhere? If so what funds are you investing in?
You should consider opening an IRA if you don't have one.
Where is your investment account located, and what stocks and funds are you using there? In a taxable account you should use very tax-efficient funds, such as total market type stock index funds. Examples would include Vanguard Total Stock Market Index Fund and Vanguard Total International Stock Index Fund.
About how, much (in dollars) do you expect that you might be contributing to investing annually?