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Wells Fargo 401K options...

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Casums
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Wells Fargo 401K options...  Reply with quote  

Hello there, my name is Casey this is my first post to the money talks website. my question is rather straight forward with a complex answer.

So a brief description of my money situation.
I am 24years old and i work at wells fargo. i am currently enrolled in the company's 401K and contributing 6% of my pay check into that acct. Wells Fargo matches up to 6% so i figure it was a good idea. also i have just under 10,000.00 dollars worth of debt. all of this is on two credit cards and I have about 2000.00 left to pay off on my car.
enough about me, Smile

my question is how should i contribute to my 401k? below is a list of every option i have available to choose from. how should i distribute my money into these accts???

DOW JONES TARGET TODAY FUND
DOW JONES TARGET 2010 FUND
DOW JONES TARGET 2015 FUND
DOW JONES TARGET 2020 FUND
DOW JONES TARGET 2025 FUND
DOW JONES TARGET 2030 FUND
DOW JONES TARGET 2035 FUND
DOW JONES TARGET 2040 FUND
DOW JONES TARGET 2045 FUND
DOW JONES TARGET 2050 FUND
DOW JONES TARGET 2055 FUND
WELLS FARGO ADV. 100% TREASURY MMKT FUND
WELLS FARGO STABLE VALUE FUND
U.S. BOND INDEX FUND
LARGE CAP VALUE FUND
S&P 500 INDEX FUND
LARGE CAP GROWTH FUND
S&P MID CAP INDEX FUND
RUSSELL SMALL CAP INDEX
SMALL CAP FUND
INTERNATIONAL INDEX FUND
EUROPACIFIC GROWTH FUND
EMERGING MARKETS EQUITY FUND
NASDAQ 100 INDEX FUND
WELLS FARGO ESOP FUND
WELLS FARGO Non-ESOP FUND


Thank you in advance for your time and advice. everything will be greatly appreciated.
Post Wed Jan 25, 2012 2:14 am
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Vensik
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Couple questions, what experiences have you had investing so far?

How would you feel if the money in your account went up 30% this year? Down 25%? Would you feel better if the maximum swings were more like 15%? Or 10%?

Traditionally you are young enough to have a very aggressive Asset Allocation for your investments because you most likely have 50 years until you retire and do not need to be conservative. However age is certainly not the only factor in how comfortable someone is with their portfolio and the swings the market can produce in their hard earned money.

Nice name though Casey, that is my name.
Post Wed Jan 25, 2012 2:44 am
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oldguy
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quote:
S&P 500 INDEX FUND
INTERNATIONAL INDEX FUND


In your case, I would use 100% equities, at your age there is no need to modulate market volitility by adding a bond mix, you want a good outcome 30 years from now, the ups & downs along the way are unimportant to you.

The SP500 Index history provides an 11%/yr average return and it is diversified over most of the US economy. You could go with 100% SP500 or you could use 75% SP500 and 25% international. Definitely give priority to the WF 401k rather than to prepaying loans - the 6% match on 6% is an instant 100% return on your money.

Just to give you an example - say that 12% of your salary is about $6000/yr - that will be $1,500,000 at age 55 if you invest in 11%/yr funds.
You should be able to stay in wealth-building funds (aggressive growth) for about 30 yrs, then start to transistion into wealth-preservation funds.

Here is a site that gives the history of the SP500 Index, check a few 30 yr periods to get an idea of the longterm returns.

http://politicalcalculations.blogspot.com/2006/12/sp-500-at-your-fingertips.html
Post Wed Jan 25, 2012 4:26 am
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coaster
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All of the accounts you listed that have the word "Target" in its name is already "distributed" according to how many years left to go to retirement, so choosing more than one of that kind of fund is unnecessary.

~Tim~
Post Wed Jan 25, 2012 7:04 am
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George Clausen
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Wells Fargo 401K options...  Reply with quote  

deleted

Congrats on participating in the 6% match. As for using an aggressive fund selection using only S&P and Intl Funds, I would recommend you some diversification using Mid Cap (which is almost always a better choice than the S&P) and some investment in the Bond Index Fund which will help smooth out your portfolio volatility in these unpredictable markets.
Post Wed Jan 25, 2012 7:41 pm
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coaster
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The url and reference to it were in violation of forum rules.

~Tim~
Post Thu Jan 26, 2012 7:04 am
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