Basics of Investing

Archive for July, 2009

Question: How should I invest my 401k?

Hi I’m 24 and want to start my 401k, I plan on contributing $392 a month and the company I work for will match 50% up to 6% of the pay I put in. I don’t know if I said that right lol. Thanks for the help, this is with Fidelity.

These are my Options…

Stocks

Large Cap:

Vanguard Institutional Index Fund Institutional Plus

Victory Diversified Stock Fund Class I Shares

Mid-Cap:

Vanguard Mid-Cap Index Fund Signal

Vanguard Strategic Equity Inv CL

Small Cap:

TARGET Small Capitalization Value Portfolio Class T

Vanguard Small-Cap Index Fund Signal

International:

AllianceBernstein International Style Blend Collective Trust

Spartan International Index Fund – Investor Class

Bond Investments

Stable Value :

ABN AMRO Income Plus Fund

Income:

PIMCO Total Return Inst CL

Answer: I suggest you go with bonds for now. They have outperformed stocks recently. Check out the article below for a different view on Fixed Income Investments. I found it enlightening.

Congratulations on starting your 401K so early!

Fidelity’s Sanjeev Shah looks into 2010