New job, new 401k

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thatoneguylol
Posts: 2
Joined: Mon Nov 05, 2018 1:19 pm

New job, new 401k

Post by thatoneguylol » Mon Nov 05, 2018 1:22 pm

Just started a new job. They match 4% in their 401K. They use Fidelity. The market is so freaking high... What should I invest in? I set it to money market for now. :confused

I am 35. I have 50K in an IRA. 50K in savings.

EDIT:

Sorry for the lack of information. Here are the funds available.

Blended Investment -- VANG TARGET RET 2015
%
Blended Investment -- VANG TARGET RET 2020
%
Blended Investment -- VANG TARGET RET 2025
%
Blended Investment -- VANG TARGET RET 2030
%
Blended Investment -- VANG TARGET RET 2035
%
Blended Investment -- VANG TARGET RET 2040
%
Blended Investment -- VANG TARGET RET 2045
%
Blended Investment -- VANG TARGET RET 2050
%
Blended Investment -- VANG TARGET RET 2055
%
Blended Investment -- VANG TARGET RET 2060
%
Blended Investment -- VANG TARGET RET INC
%
Bond Investments Income METWEST TOT RTN BD I
%
Bond Investments Income VANG TOT BD MKT ADM
%
Short-Term Investments -- VANG VMMR-FED MMKT 100%
%
Stock Investments Large Cap DODGE & COX STOCK
%
Stock Investments Large Cap PRMCP ODYSSEY GROWTH
%
Stock Investments Large Cap VANG 500 INDEX ADM
%
Stock Investments Mid-Cap VANG EXT MKT IDX ADM
%
Stock Investments Small Cap DFA US SM CAP VALUE
%
Stock Investments Small Cap J H TRITON N
%
Stock Investments International OPPHMR INTL DIVSF I
%
Stock Investments International VANG TOT INTL STK AD
%
Stock Investments -- VANG TOT WLD STK INV
%
Last edited by thatoneguylol on Thu Nov 08, 2018 1:52 pm, edited 1 time in total.

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Earl Lemongrab
Posts: 5654
Joined: Tue Jun 10, 2014 1:14 am

Re: New job, new 401k

Post by Earl Lemongrab » Mon Nov 05, 2018 5:56 pm

Don't try to time the market. Come up with a reasonable allocation, then start investing to plan.

Post all of your current holdings and choices in the new plan as outlined in the sticky note at the top of the subforum.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

Flyer24
Posts: 375
Joined: Sun Apr 08, 2018 4:21 pm

Re: New job, new 401k

Post by Flyer24 » Mon Nov 05, 2018 6:54 pm

Would you have thought the same thing in 2016 when the Dow was at 18,000? You should read about dollar cost averaging. Do no time the market. You are not an expert.

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ruralavalon
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Location: Illinois

Re: New job, new 401k

Post by ruralavalon » Tue Nov 06, 2018 11:45 am

Welcome to the forum :) .

Don't try to guess whether this is a good time to invest. If worried you could invest in a conservative balanced fund or mix of funds.

thatoneguylol wrote:
Mon Nov 05, 2018 1:22 pm
Just started a new job. They match 4% in their 401K. They use Fidelity. The market is so freaking high... What should I invest in? I set it to money market for now. :confused

I am 35. I have 50K in an IRA. 50K in savings.
What funds are offered in your 401k? Please give fund names, tickers and expense ratios. (We can't possibly suggest what funds to invest in without knowing what the available choices are.)

Are you contributing enough to your 401k to get the full employer match offered?

What fund firm is your IRA with, and what investments are in it? How much do you contribute annually to your IRA?

You can simply add this to your original post using the edit button (the pencil icon near the upper right corner of your post), it helps a lot if all of your information is in one place.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

thatoneguylol
Posts: 2
Joined: Mon Nov 05, 2018 1:19 pm

Re: New job, new 401k

Post by thatoneguylol » Thu Nov 08, 2018 1:52 pm

Sorry for the lack of information! Edited!

b42
Posts: 294
Joined: Thu Apr 11, 2013 7:00 pm

Re: New job, new 401k

Post by b42 » Thu Nov 08, 2018 2:03 pm

Welcome to the forums!

Depending on your other holdings, you could do 100% in the Vanguard Target Retirement 2050 Fund to start. That would get you a diversified portfolio.

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vineviz
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Re: New job, new 401k

Post by vineviz » Thu Nov 08, 2018 2:07 pm

b42 wrote:
Thu Nov 08, 2018 2:03 pm
Welcome to the forums!

Depending on your other holdings, you could do 100% in the Vanguard Target Retirement 2050 Fund to start. That would get you a diversified portfolio.
I agree. This is an easy path to excellence.
"Far more money has been lost by investors preparing for corrections than has been lost in corrections themselves." ~~ Peter Lynch

jpelder
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Joined: Mon Jan 26, 2015 3:56 pm
Location: Charlotte, NC

Re: New job, new 401k

Post by jpelder » Thu Nov 08, 2018 2:07 pm

b42 wrote:
Thu Nov 08, 2018 2:03 pm
Welcome to the forums!

Depending on your other holdings, you could do 100% in the Vanguard Target Retirement 2050 Fund to start. That would get you a diversified portfolio.
I second this recommendation. Target-Date funds are great for nervous investors (sounds like you're feeling a little nervous) because you can choose a single fund for a reasonable price, and then not mess with it. Messing with it is a sure route to mistakes if you're an emotional investor

TSWNY
Posts: 126
Joined: Sun Mar 13, 2016 1:05 pm

Re: New job, new 401k

Post by TSWNY » Thu Nov 08, 2018 2:09 pm

Time in the market is always better than timing the market. You probably have 20,25,30 more years of working, right? Over that time you are going to see many many market "highs". Set an asset allocation that you feel comfortable with and start contributing now.

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ruralavalon
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Location: Illinois

Re: New job, new 401k

Post by ruralavalon » Fri Nov 09, 2018 11:45 am

thatoneguylol wrote:
Thu Nov 08, 2018 1:52 pm
Sorry for the lack of information! Edited!
Please add the ticker symbols and expense ratios. Expense ratios are critical in fund selection. Sometimes a 401k charges different expense ratios for funds than are charged to the general public.

There are many very good funds offered in your 401k plan, you are fortunate.

I encourage you to contribute as much as practical to your 401k plan.


jpelder wrote:
Thu Nov 08, 2018 2:07 pm
b42 wrote:
Thu Nov 08, 2018 2:03 pm
Welcome to the forums!

Depending on your other holdings, you could do 100% in the Vanguard Target Retirement 2050 Fund to start. That would get you a diversified portfolio.
I second this recommendation. Target-Date funds are great for nervous investors (sounds like you're feeling a little nervous) because you can choose a single fund for a reasonable price, and then not mess with it. Messing with it is a sure route to mistakes if you're an emotional investor
A target date fund could a good idea for you. If you are nervous ("market is so freaking high") and want to be conservative, then you could pick a target date fund with a high bond allocation and not just rely on the year stated in the fund name to make your choice.

In the alternative to a target date fund, funds to consider might be:
1) Vanguard 500 Index Fund Admiral Shares;
2) Vanguard Total International Stock Index Fund Admiral Shares; and
3) Vanguard Total Bond Market Index Fund Admiral Shares.

Either way you need to pick an asset allocation (stock/bond mix, and domestic/international stock mix) that is comfortable for you based on your own ability, willingness and need to take risk.

What is your age, and years to expected retirement? Do you have any debt? If so what types, amounts and interest rates? Any dependents? How safe is your job, your employer, and the industry you work in? How would you describe your tolerance for risk?

Again you can simply add this to your original post using the edit button, so that all of your information is in one place.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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