diamondz
New Member
Cash: $ 1.70
Posts: 8
Joined: 02 Apr 2007
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| How to build my 401k? |
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I am 26 years old, I work for Honeywell, Inc. I have been there a year. I am in the 401k plan at only 2% after this year i think they start to give 4 %
Right now my funds are going into the default option of short-term fixed income fund. I want to increase my percentages but i am not sure of how much and what to invest it into. Here are my options
Any suggestions are welcome. thanks
Short-Term Fixed Income Fund
Investment Grade Bond Fund
Pre-Packaged Conservative Fund
Pre-Packaged Moderate Fund
Pre-Packaged Aggressive Fund
Value Yield Equity Fund
S&P 500 Equity Index Fund
Growth Equity Fund
International Stock Fund
Small-Cap Stock Fund
Honeywell Common Stock Fund
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Mon Apr 02, 2007 2:11 pm |
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Enlightened
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Joined: 06 Apr 2007
Location: Washington
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4% matching isn't enough for locking your money up indefinitely.
You could beat that in the stock market, standing on your head.
E
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Sat Apr 07, 2007 5:37 am |
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oldguy
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Location: arizona
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You need to give yourself a chance. With the income fund, it is a mathematical certainty that you CANNOT accumulate wealth, the average wage earner simply does not make enough money to 'save' their way to prosperity in a 30 year career. Conversely, if you invest the money, you will be utilizing the power of compound interest for a long long time, just a small amount of money will make you wealthy. I contributed to the 401k for about 15 years, then retired, had nearly $1M in it. If 401k had been invented sooner (so that I had 30 yrs) it would have been about 4X bigger. As others suggested, go with the SP500 Index and pick up the pace.
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Mon Apr 09, 2007 12:21 am |
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diamondz
New Member
Cash: $ 1.70
Posts: 8
Joined: 02 Apr 2007
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Thanks for all the replies
oldguy are you suggesting the sp 500 or the short term income fund?
or are all of these below great choices to invest some percentage in and just leave it at these and just wait?
S&P 500 Equity Index Fund
Growth Equity Fund
International Stock Fund
Small-Cap Stock Fund
Honeywell Common Stock Fund
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Mon Apr 09, 2007 1:15 am |
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diamondz
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Cash: $ 1.70
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so tim do you just recommend the sp 500 also?
thanks
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Mon Apr 09, 2007 1:37 am |
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diamondz
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Cash: $ 1.70
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yes they match
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Mon Apr 09, 2007 2:06 am |
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diamondz
New Member
Cash: $ 1.70
Posts: 8
Joined: 02 Apr 2007
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I think its the same but I will double check on that in the morning
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Mon Apr 09, 2007 2:28 am |
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oldguy
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Location: arizona
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quote:
oldguy are you suggesting the sp 500 or the short term income fund?
Definitely use the SP500 Index at your age, savings products such as the Income Fund are way too conservative for someone under age 50.
quote:
S&P 500 Equity Index Fund
Growth Equity Fund
International Stock Fund
Small-Cap Stock Fund
Honeywell Common Stock Fund
IMO, make the SP500 Fund your core fund, over 50%, then include a little of the others, maybe 10% each. Except the Honeywell stock, it is not a good plan to tie up more than 5% of your money in any one stock, too much risk. (One of the SP500 companies could fail and you would hardly notice, the other 499 companies would still be there. Not the case with an individual stock, high uncompensated risk
- I own no individual stocks.)
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Mon Apr 09, 2007 3:21 am |
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diamondz
New Member
Cash: $ 1.70
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I have a question, if you please.
If i make money in one stock. say i look today and have made 2500 in the s&p500 do i move that money or a partial of that money to a secure place, say to the short term fixed, where i won't lose it or just let it be?
Just trying to figure out how it works and how to gain dollars.
the tips you gave are great the S7P is doing good and so is the honeywell
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Thu May 03, 2007 3:51 pm |
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Mr.W
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| Advice. |
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Excellent advices are you receiving.
Only one, thing: do not get enoung with that, search for more. Not invest, first, search fo more options, you are young, so, you can take more risk with more profits, no great part of your money, but with a little you can make agreat income. Just begin the search.
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Thu May 03, 2007 4:37 pm |
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