Need advice on retirement planning (401k)

[Supplicate]

I have the option of enrolling in my current employers 401k. But, I can't enroll until November.

Would like to get something rolling here ASAP with just a personal plan so I can forgo the company plan, especially since I don't see much of a future here.

Anyone know somewhere to get good info or good investment councilers (email addresses) to talk to about this stuff? Really want to start saving up before I'm 40 and -have- to start saving.

 

[buck50]

i'd go with AIG maybe!!!!!!!!!!!!

 

[The Fourth Wolf]

Buy AIG stock. It's $2.69 a share right this second...Buy Buy Buy.

(I'm buying 1000 shares tommorrow)

IT WILL RECOVER.

Also look seriously into Index Funds. The market is depressed so people are freaking right now but the time to buy is very soon--the guru's are saying the market will drop further before election day before beginning to recover.

Index funds scare a lot of 1st timers because they are front loaded (a chunk of your money up front) however Index Funds out perform every other type of mutual fund.
Talk to any reputable investment broker--your bank or credit union may have one and compare your 401K to the same dollar amount invested in other vehicles and choose what's best for you.

Last thing for all you young guys...get a Roth IRA.

Goodonya Supplicate for thinking ahead. Be disciplined about saving and investing and you'll be no sh!t rich by retirement time. I did what you said you didn't want to do--f ugged around until I was 40. Better late than never I suppose.

 

[Rmk900rider]

Not trying to hi-jack this but what way would i go in investing in aig. I have never invested in the stock market or anything so where would i go to figure this stuff out Thanks Travis

 

[The Fourth Wolf]

Open an online account with one of the brokers like Schwabb or E-trade, or look up Investments or Stock Brokers in the Yellow Pages.

I use USAA--they're my insurance company and most insurance companies have an investment division, of course they want you buy universal life (don't).

I have a new e-trade account but I'm figuring it out as I go.

 

[Supplicate]

Be disciplined about saving and investing and you'll be no sh!t rich by retirement time.

Thats the hard part right there, used to be a "want it so I'm gonna get it" kind of person. Doesn't help being "overpaid oilfield trash"

Current goal is to get 30% of my monthly income into some sort of savings, even if for now its just a savings account until I can start buying money markets and similar.

 

[Hunter2008]

You might think about Capital One IRA. They are paying high % interest. Like up to 4% or close to that.

 

[MN_Nole]

My brother is a financial planner with Ameriprise, hate to pimp the business, but am sure he would talk too you. He's out of FLa, so not sure on his licence out in WY. But am sure he would talk to you. If interested. Not trying to sell you on him, as I am pretty sure he is not licensed in WY, but I am sure as a favor he would talk to you, (as hes a good ole educated redneck like me) and say ya or naw on your thoughts. PM me if interested, and I would set up the call. Do what you want with it after.

 

[MillerMtn]

I'm a finance major at UM right now, maybe I can help you out. What I would suggest is a Roth IRA. With a roth you invest money you have already paid taxes on, so when you pull it out at retirement you owe no taxes at all, not on the principle or on any gains! With a traditional IRA on the other hand, you can write off your contributions now, but you pay taxes on them (and your gains) later. Just go to Charles Schwab's website (schwab.com) and look into it. Pretty much all the info you would need can be found on their site. I suggest using Schwab because you can get your account set up completely for free, and they offer so many no-load and no-fee mutual funds that your account can be up and running without any charges. Something to look into would be Target Date funds, these basically allocate your money for you based on the year closest to when you think you would retire. It's kind of a one step thing that totally diversifies your money. Hope this helps! I can answer any other questions for you too.

 

[MillerMtn]

Forgot to mention, I agree with Spindrifter up there. Index funds are a GREAT place to park your money. Most people don't like to admit it but something like 80% of actively managed mutual funds under-perform the market every year. So it makes sense to invest in passively managed Index funds, they won't under-perform the market because they track it! Feel free to PM me with questions.

 

[SnowAddiction2]

Since you have lots of time on your side (I'm assuming you are young), invest into NO-LOAD Mutual funds. Vanguard http://personal.vanguard.com/us/home, or Fidelity http://www.fidelity.com/ have low maintenance fees, and have very good Mutual funds. Dollar cost average invest every month, and don't attempt to guess the market.

Within these investment companies, open a Roth IRA and max them out every year, and within the Roth, you can choose any of their Mutual funds to invest.

When you become eligible for your employer 401k, max it out, or at least put in enough to get the full company match. Never pass up free money.

Stick with a plan you believe in, follow through without waivering, you will be secure in no time. Of course, make sure you set aside enough to get the sled of you dreams every couple of years. Can't forget that!

PS: Currently, the financial system is a mess. Don't panic. You have time on your side. No time like the present to dive in the deep side!

 

[revrider1]

Lmfao!

 

[Supplicate]

A bit of update for people:

currently have submitted the paperwork to buy into the 401k. Putting in 8% of gross with a company match of 4% of gross, so I'll be sitting pretty good once the ball gets rolling after the 1st of October. (Secretary was mistaken when she told me November)

Of the 12% getting invested, this is how I have part of it set up:
30% to a Target Date fund
40% to the US Equity Index Fund.

Looking into setting up a Roth, checked it out and I can still max it out by the end of the year and basically be a year ahead on it. Just means I'll have to cut some sledding and vacation out this winter.

 

[Backcountry]

Go on ya to start the 401K.

Just speaking in general terms here for others who may be reading....Does your employer have a match on your 401K contributions. Even if you are only to be there a few years- you would be foolish to not take advantage of those match funds. Basically give yourself a pay raise by contributing to your 401K. 401K's are fairly portable that if you switch employers you are allowed to take the funds with you and not be penalized as long as you roll them back into some retirement program(401K, IRA, etc).

I like a mix of pre-tax and post-tax contributions, because both have their advantages.

Like mentioned above, the life cycle funds- the ones that say you are retiring in 2030 or whatever seem to be a decent match for most people to place their money within.

Above all else- stay diversified in your investments. I had little sympathy for the people who had 80% of their retirement fund wrapped up in a company to then only have that company go under(cough Enron cough).

Edit- One other thing I wanted to add is use the online retirement calculators to determine how much you might need to be saving for retirement. While it is certainly worthy and easy to say save as much as possible, there has to be a balance between locking up all your money in retirement funding versus having the ability to purchase things to give you some assets(home, property, gold, etc.)