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Investing/Strategies / Retirement Investing
|Subject: 401(k) and foolishness revisited||Date: 4/14/1998 3:56 PM|
|Author: YoungNotDumb||Number: 2815 of 75375|
I've just recently started with a company that includes a 401(k) in it's benefit package. I've read all the threads concerning 401(k) on this board but am still in a quandry.
My company is nice enough to match the first 3% of my contribution 100% and the next 3% contribution is matched 25%. If I invest 6% I get a free 3.25% from the company. You don't have to be a Fool to understand it's free money but should I invest the full 15%? or just the 6% and take my other 9% elsewhere? The 401(k) option package I received is rather vague. Striking Mutual Funds from the list leaves the following investment opportunities:
Indexed Stock Fund: All 500 stocks that make up the S&P 500.
Growth Stock Fund: Well-established, dividend paying stocks whose performance is EXPECTED to meet or exceed the S&P 500 Index.
Windsor Stock Fund: Stocks that are undervalued or out of favor.
From those three options I was thinking of 50% in the index (After reading TMF13 steps) and 50% in the Growth fund. Can anyone offer any insight or personal philosophies concerning these options?
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