Glad you are contributing in 401k and getting your FREE summer trip ;-) . If i were you, as a new 401K contributor, i would select generic year of retirement fund. for ex., if you are with Vanguard then, "Vanguard Target Retirement 2055 Fund" is a good fit for whoever plan to retire in 2055.
Fellow SettleWisers, Please pitch in and provide your input too. More we interact the more we all gain and grow together.
Also, if you are new to 401k, you will be investing from every paycheck - that means you are buying over a period of time aka dollar cost averaging DCA - an early accumulator - you should not be worried about risk as long as you are investing in a target date fund TDF - if anything you will be praying for a decade of down market so that you can load up on stocks (TDF) for cheap - dont hesitate - jump in.
Totally agree with you, Raghu. Appreciate your input to the community. You are the role model in this community to step up and empower fellow subscribers. Take care
I am new to 401K. Need inputs on following.
How to determine the risk factor of a fund?
What is a reasonable approach in distributing the contribution across fund?
Glad you are contributing in 401k and getting your FREE summer trip ;-) . If i were you, as a new 401K contributor, i would select generic year of retirement fund. for ex., if you are with Vanguard then, "Vanguard Target Retirement 2055 Fund" is a good fit for whoever plan to retire in 2055.
Fellow SettleWisers, Please pitch in and provide your input too. More we interact the more we all gain and grow together.
good advice JJ.
Also, if you are new to 401k, you will be investing from every paycheck - that means you are buying over a period of time aka dollar cost averaging DCA - an early accumulator - you should not be worried about risk as long as you are investing in a target date fund TDF - if anything you will be praying for a decade of down market so that you can load up on stocks (TDF) for cheap - dont hesitate - jump in.
Totally agree with you, Raghu. Appreciate your input to the community. You are the role model in this community to step up and empower fellow subscribers. Take care