lovelife22 0 #1 September 30, 2004 I am rolling over some $$$ into my current 401K plan, any suggestions on what to invest in? Low-priced stock funds? Diversified? Real Estate Investment? Growth/Income? I have no clue, I want something middle ground, but not too risky!!?? Anyone help with this? I am a complete nob at stuff like this...!!! HELP ME!! Quote Share this post Link to post Share on other sites
AggieDave 6 #2 September 30, 2004 If you're looking to invest for a loss (for your taxes) there are a LOT of DZs (just about all of them) that could help you out.--"When I die, may I be surrounded by scattered chrome and burning gasoline." Quote Share this post Link to post Share on other sites
PhillyKev 0 #3 September 30, 2004 Start here http://www.401khelpcenter.com/Employee_index.html QuoteYou must make your own allocation decisions based upon your individual situation, but we can give you some general "rule of thumb" asset allocations based upon age. You can use these as a starting point. We assume retirement at age 65. Age: Less Than 40 -- 100% in equities. Of this, 40% invested in large cap. growth funds, 25% small cap. growth funds, 25% in large cap. value funds, and 10% international. Age: 40 to 50 – 80% in equities and 20% in fixed income. Of the equity portion, 40% invested in large cap. growth funds, 25% small cap. growth funds, 25% in large cap. value funds, and 10% international. Age: 51 to 55 – 70% in equities and 30% in fixed income. Of the equity portion, 40% invested in large cap. growth funds, 25% small cap. growth funds, 25% in large cap. value funds, and 10% international. Age: 56 to 60 – 50% in equities and 50% in fixed income. Of the equity portion, 40% invested in large cap. growth funds, 10% small cap. growth funds, 40% in large cap. value funds, and 10% international. Age: 61 to 65 – Reduce equities by 5% per year and increase fixed income by 5% per year so that at retirement you have 25% in equities and 75% in fixed income. Of the equity portion, 40% invested in large cap. growth funds, 10% small cap. growth funds, 40% in large cap. value funds, and 10% international. Remember, this information is provided as general guidance on the subject of asset allocation and is not provided as legal, tax or investment advice. Individual situations vary. Please be sure you consult with your tax, legal or financial advisor for more detailed information and advice. Quote Share this post Link to post Share on other sites
flyhi 24 #4 September 30, 2004 S&P 500 Index fund is pretty middle ground. VanGuard has a good one. But...you're young. Why not go aggressive? You have time on your side.Shit happens. And it usually happens because of physics. Quote Share this post Link to post Share on other sites
RoysPlayThing 0 #5 September 30, 2004 If I were you, I would roll your money over to a IRA account... You won't have to pay taxes until you start taking money out of the plan when you retire, and you can reallocate and diversify your investment according to your needs and investment preferences. You can also combine this money with other retirement money. You money will keep growing tax-deffered. Better yet... look into a Roth IRA... unlike the traditional IRA's there is no tax deduction for the money you put in, but the earnings you build can be withdrawn entirely tax free. Is this 401k from a previous employer? ... Hope this helps a little. _______________________________________________ My mind is like a parachute...it functions only when open. Quote Share this post Link to post Share on other sites
lovelife22 0 #6 September 30, 2004 QuoteIf I were you, I would roll your money over to a IRA account... You won't have to pay taxes until you start taking money out of the plan when you retire, and you can reallocate and diversify your investment according to your needs and investment preferences. You can also combine this money with other retirement money. You money will keep growing tax-deffered. Better yet... look into a Roth IRA... unlike the traditional IRA's there is no tax deduction for the money you put in, but the earnings you build can be withdrawn entirely tax free. Is this 401k from a previous employer? ... Hope this helps a little. Yes previous employer, basically sitting for the past year. I never thought of the IRA...that may be my best bet. THANKS SO MUCH! Quote Share this post Link to post Share on other sites
RoysPlayThing 0 #7 September 30, 2004 Your welcome kari _______________________________________________ My mind is like a parachute...it functions only when open. Quote Share this post Link to post Share on other sites
PhillyKev 0 #8 September 30, 2004 You can't rollover into a Roth IRA. You'd have to rollover to a tradiational IRA first and then convert it, if you're eligible. Quote Share this post Link to post Share on other sites
pop 0 #9 September 30, 2004 QuoteI am rolling over some $$$ into my current 401K plan, any suggestions on what to invest in? Low-priced stock funds? Diversified? Real Estate Investment? Growth/Income? I have no clue, I want something middle ground, but not too risky!!?? Anyone help with this? I am a complete nob at stuff like this...!!! HELP ME!! Take out your 401K and move to Mexico on the beach!!!!7 ounce wonders, music and dogs that are not into beer Quote Share this post Link to post Share on other sites
RoysPlayThing 0 #10 September 30, 2004 QuoteYou can't rollover into a Roth IRA. You'd have to rollover to a tradiational IRA first and then convert it, if you're eligible. that is correct _______________________________________________ My mind is like a parachute...it functions only when open. Quote Share this post Link to post Share on other sites
lovelife22 0 #11 September 30, 2004 QuoteQuoteI am rolling over some $$$ into my current 401K plan, any suggestions on what to invest in? Low-priced stock funds? Diversified? Real Estate Investment? Growth/Income? I have no clue, I want something middle ground, but not too risky!!?? Anyone help with this? I am a complete nob at stuff like this...!!! HELP ME!! Take out your 401K and move to Mexico on the beach!!!! Now that is the best one yet!! Sounds very tempting at the moment... Quote Share this post Link to post Share on other sites
pop 0 #12 September 30, 2004 QuoteQuoteQuoteI am rolling over some $$$ into my current 401K plan, any suggestions on what to invest in? Low-priced stock funds? Diversified? Real Estate Investment? Growth/Income? I have no clue, I want something middle ground, but not too risky!!?? Anyone help with this? I am a complete nob at stuff like this...!!! HELP ME!! Take out your 401K and move to Mexico on the beach!!!! Now that is the best one yet!! Sounds very tempting at the moment... Of course you are going to need someone to accompany you who also has a 401K 7 ounce wonders, music and dogs that are not into beer Quote Share this post Link to post Share on other sites
lovelife22 0 #13 September 30, 2004 QuoteQuoteQuoteQuoteI am rolling over some $$$ into my current 401K plan, any suggestions on what to invest in? Low-priced stock funds? Diversified? Real Estate Investment? Growth/Income? I have no clue, I want something middle ground, but not too risky!!?? Anyone help with this? I am a complete nob at stuff like this...!!! HELP ME!! Take out your 401K and move to Mexico on the beach!!!! Now that is the best one yet!! Sounds very tempting at the moment... Of course you are going to need someone to accompany you who also has a 401K Hmmmmmmm, and who would THAT be???? Quote Share this post Link to post Share on other sites
pop 0 #14 September 30, 2004 QuoteQuoteQuoteQuoteQuoteI am rolling over some $$$ into my current 401K plan, any suggestions on what to invest in? Low-priced stock funds? Diversified? Real Estate Investment? Growth/Income? I have no clue, I want something middle ground, but not too risky!!?? Anyone help with this? I am a complete nob at stuff like this...!!! HELP ME!! Take out your 401K and move to Mexico on the beach!!!! Now that is the best one yet!! Sounds very tempting at the moment... Of course you are going to need someone to accompany you who also has a 401K Hmmmmmmm, and who would THAT be???? Hmmm...I dont know...I'll let you pick (me).7 ounce wonders, music and dogs that are not into beer Quote Share this post Link to post Share on other sites
lovelife22 0 #15 September 30, 2004 QuoteQuoteYou can't rollover into a Roth IRA. You'd have to rollover to a tradiational IRA first and then convert it, if you're eligible. that is correct One more ???, pre-tax deductions? or not? Quote Share this post Link to post Share on other sites
Sebazz1 2 #16 September 30, 2004 If you're going to be working for another 20-30 years and the world does not implode I would suggest going 85 - 90 % stock. Go aggressive and you can transfer it all into less risky investments 15-20 years from now. If you look at all the charts that many 401(k) planner sites show, going mostly stock ro aggressive funds will get you the most in the long run... That's just what I heard from this 401(k) planner dude that cam eto my office a year ago. Quote Share this post Link to post Share on other sites
RoysPlayThing 0 #17 September 30, 2004 QuoteQuoteQuoteYou can't rollover into a Roth IRA. You'd have to rollover to a tradiational IRA first and then convert it, if you're eligible. that is correct One more ???, pre-tax deductions? or not? hmmm.. thats a toughie...I don't know too much about this one... I think it al depends on personal preference._______________________________________________ My mind is like a parachute...it functions only when open. Quote Share this post Link to post Share on other sites
PhillyKev 0 #18 September 30, 2004 QuoteQuoteQuoteYou can't rollover into a Roth IRA. You'd have to rollover to a tradiational IRA first and then convert it, if you're eligible. that is correct One more ???, pre-tax deductions? or not? If you can afford to pay the tax from other savings that you have instead of from the money you're rolling over, go for the Roth (if you're eligible). If you can't, and you'd have to take the money out of the funds you're rolling over to pay the tax, you'd probably be better off just going into a traditional IRA. Here's a calculator you can use to determine which is the best strategy based on your personal details. http://www.planningtips.com/cgi-bin/roth.pl Quote Share this post Link to post Share on other sites
lovelife22 0 #19 October 1, 2004 QuoteQuoteQuoteQuoteYou can't rollover into a Roth IRA. You'd have to rollover to a tradiational IRA first and then convert it, if you're eligible. that is correct One more ???, pre-tax deductions? or not? If you can afford to pay the tax from other savings that you have instead of from the money you're rolling over, go for the Roth (if you're eligible). If you can't, and you'd have to take the money out of the funds you're rolling over to pay the tax, you'd probably be better off just going into a traditional IRA. Here's a calculator you can use to determine which is the best strategy based on your personal details. http://www.planningtips.com/cgi-bin/roth.pl THANK YOU EVERYONE FOR YOUR INPUT. All this info was very helpful!! And Mike, I almost opted for the Mexico thing, but forgot that I am never allowed back in Mexico again... Don't ask!!!!!! Quote Share this post Link to post Share on other sites
kelpdiver 2 #20 October 1, 2004 Quote Yes previous employer, basically sitting for the past year. I never thought of the IRA...that may be my best bet. THANKS SO MUCH! Unless the new company 401k is really nice, or you plan to borrow the money for a down payment, the IRA gives you a much greater choice of investments and the ability to change companies if the current one pisses you off. And these days they'll do almost all the work for you! Quote Share this post Link to post Share on other sites
PhillyKev 0 #21 October 1, 2004 If you do go the IRA route, you definitely want no load funds. Vanguard is an excellent choice because they are in essence, non-profit. Almost all of their funds are no load and all fees that are charged get reinvested in the funds. Quote Share this post Link to post Share on other sites
skydivexxl 0 #22 October 1, 2004 My Smallcap world fund did -22.3% in 02, 50.4% in 03, and is -1% this year... actually outperforming ALL of the indeces. Go 75-80% aggressive, and review your funds every quarter. Blog Clicky Quote Share this post Link to post Share on other sites
