Mutual Funds and 401K

Discussion in 'Campfire' started by CrappieMaster220, Jan 8, 2011.

  1. CrappieMaster220

    CrappieMaster220 Well-Known Member

    This maybe way off topic from the site... However, I am 23 years old and started my 401k a little over a year ago.. My employer matches up to 6 percent and I contribute 6 percent... I check it about once a month online to see how its doin and I noticed today that I've consistently made 15% return for about the past year... I move my money around from time to time, but for the most part its balanced, there is some in small mid cap/large cap/ bonds/international/ ect. I was afraid of having too many eggs in one basket and so far its working for me.

    I'd like to hear from some guys that know a little more on the subject and could possibly give me any pointers for investing for my retirement...

  2. Vetrock

    Vetrock Well-Known Member

    Listen to 103.7 The buzz this morning. They'll have the "Get ready for the future show" on. These guys are solid, and they are my financial advisors. They are located in your area as well.

  3. Arkiehunter74

    Arkiehunter74 Member<br>2011 Turkey Contest Winner<br>2015 Sprin

    Man, a 6% match is awesome. Congrats on making that first step, most around your age do not think about what might be in 40 years. I am by no means an expert, but here is what I do:
    Research everthing before I make a move. Even if I make a bad move, I do not feel as bad about it if I educate myself first.
    Everytime you get a raise, try to increase your contributions. I average 3 to 5% raise a year (wish it was more) but I always increase my contribution by 1% or more. IT ADDS UP.....
    Some companies charge you if you move your money around too much, which could make you take a loss on it, know your plan.
    Do not get yourself into a bind now in order to save for later. You can always lower your contribution and pay off current debt, then go back to contributing more. A higher credit score now can save you a ton of money long term in morgage and loan interests.
    To me it is actually fun to keep track of my retirement :shrug:, at the very least it makes me aware of if I would be able to retire early.
  4. Mr. Chitlin

    Mr. Chitlin Administrator Staff Member

    NE Ark
    Arkie has good advice. At your age you can put some into more high risk investments, but as you get closer to retirement you will want to go more conservative. I'm 52 and still willing to gamble with mine but also know the risks. I have done well even with the major stock market drop a couple of years ago. I've been in for ~30 years and plan of not drawing mine for another 8 years or so anyway.
  5. gichad128

    gichad128 Well-Known Member

    One idea is to subtract your age from 100. Whatever you come up with, invest that much percent in stocks or other riskier investments. The theory is to gradually reduce your risk as you get older. Just a suggestion. I am not a licensed financial advisor.

  6. Hudge

    Hudge Well-Known Member

    If you have an employer that will match up to 6%, that is awesome. I am only putting in 3% right now, and DoD will not match my TSP. Luckily, I also have military retirement I hope to draw one day. I put a little more that 3% away each month, as I just started a separate account from my TSP. As has been mentioned with your age, it's probably a little better for you to take a few more high risk investments than us older guys. I am just now starting to build back the 2/3 I lost in my TSP in 2008. Do your homework, and stay for the longrun, and it will work out for you.
  7. jsilver919

    jsilver919 Well-Known Member

    i'd kill for a 5% after our 1.4 this yr....think the military should just go on strike till they do us rite
  8. dirtdart

    dirtdart Well-Known Member

    Wow...what "funds" was your TSP being placed in?
  9. jsilver919

    jsilver919 Well-Known Member

    i really like arkie's idea about raising your contributions 1% or so each yr. think i might log on and do that.

    i started my Thrift Savings Plan (TSP) when i was 21-22 and like Hudge said took a MAJOR hit in 08. At 27 now i really starting focusing on retirement more and recently started an IRA. with my mil retirement i should be in business. esp if i can earn another retirement after the mil.

    youre doing good though. most have the live for now and blow every dime i make motto
  10. Mongoose

    Mongoose Well-Known Member

    If you make less than $110,000 a year, you are allowed to contribute up to $16,500 to your 401 K plan. Put in as much as you can and retire early!:thumb:
  11. jsilver919

    jsilver919 Well-Known Member

    Probably the i fund like i was, and still am.

    buy low!!!!:up:
  12. jsilver919

    jsilver919 Well-Known Member

    i tell ya what if i gave up hunting, fishing, shooting, buying guns, and driving a gas hog i might be able to swing that 16k a yr:head:

    ehhh but then again what would live be......maybe i could take up golf or something:fit::fit::fit::fit::fit:
  13. Mule man

    Mule man Well-Known Member

    You don't have to have a great deal of money to be rich, just a long time. You have that. Congrats on being wise with your money. You will do well. Don't ever pull it out to buy a car or 4 wheeler etc. They would be the most expensive you ever bought.
  14. Hudge

    Hudge Well-Known Member

  15. CrappieMaster220

    CrappieMaster220 Well-Known Member

    Thanks everyone... I think many of these funds are beginning to recover from the massive dive they took in 08... All but one of the funds I invest in are doing very well.
  16. Mongoose

    Mongoose Well-Known Member

    I tell ya what... You might have over looked two words in that post... "up to":clap:
  17. hotrod98

    hotrod98 Well-Known Member

    I'm fixing to be 35 and have only had two jobs my whole life so I'm not really familiar with the average that an employer contributes... but I feel pretty fortunate that UAMS matches you up to 10% of your salary.. heck they even contribute 5% if you elect to contribute nothing. I guess working for the state has some decent benefits.
  18. jsilver919

    jsilver919 Well-Known Member

    hopefully i can find a good state job when i'm done with the mil
  19. miketyson26

    miketyson26 Well-Known Member Lifetime Supporter


    I don't think you should use a 401k plan like a checking account but you may want to consider this down the road. There are some very specific reasons you can legally deduct money from the 401k plan. Such as:

    #1 The purchase or building of a primary residence.
    #2 Avoiding foreclosure of a primary residence.
    #3 Medical debt.
    #4 College tuition for you or a dependant.

    These are called hardship withdrawals. They are different then a 401k loan. Hardship withdrawals do not have to be paid back. You will be required to pay taxes on the removal though. Every 401k fund manager handles withdrawals in a different way so check with yours for details.

    I have personally used a 401k withdrawal in the past to pay the down payment on a home. The upside to doing a withdrawal from 401k to purchase a home when your young is that you can save tens of thousands of dollars in interest payments on a home loan, you don't gain debt payments that can haunt you later on and you haven't really lost any retirement money. The money is now home equity.

    Keep using good judgement and your gonna do fine.

    Miketyson26 :flag:
  20. tgooch

    tgooch Moderator Supporting Member

    I too am investing in my 401k and my employer is matching up to 4%. Other than that I have no other investments but would like some. Anyone know of some good financial advisors around nwa I could get in touch with?