UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev | Next
Author: EsamMoney Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: 401k for 22 year old Date: 3/20/2003 4:22 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
Ok so I'm 22 years old and I met with the investment guy for my company's 401k plan (ING). I told him I was going to put 15% into our guaranteed fixed rated account. This account is GUARANTEED minimum 4.65% return and is currently at 4.95%. This money is not taxed because its in my 401k. He practically begged me not to do this because my time horizon is so long(45ish years) and said I should be 100% invested in stocks. I personally feel the 85% invested in stocks that I would have been is still quite a lot of stock exposure. Basically I want to put that money in the fixed account as an alternative to bonds because I highly doubt I will see a return of 5% on bond funds in the coming years. When interest rates go up and bonds look attractive I can take my money out of the fixed account and put it into the bond fund. I don't see any problem with guaranteeing at least a small portion of my portfolio, even if it does limit my upside potential a bit. I mean I am contributing my 15% to my 401k plus my employer's 1% match(what a stingy match!). What do you think? Whew!

Eric
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Tax Strategies

TMFPMarti-Feeling Good
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement