As to the investment options, first and foremost, diversification is the key. The younger you are, the more you put into equities. As you get older you start dropping the equities and shifting towards bonds/fixed income. As a very general guide, start out 70% stocks/30% bonds when under 35. Then gradually shift the mix till you are flipped to 40/60 in favor of bonds at retirement. Talk to an advisor to walk you through it. Your employer should have someone available that you can speak with.

Your second challenge is to find someone who is in the business of investing that actually knows what they're talking about. You'd be surprised.

I was hoping Clyde would chime in because I knew he would give you solid advice. This part of his statement is remarkably spot on. Not all financial planners are created equal.

1. By max out, do you mean contribute to the point of your employer's match? Or as much as you can comfortably afford to contribute?

 

2. I'm 28, almost all if not all of my 401K is going towards very agressive investments. This is what I should be doing, right?

I have another question. I had a 401K through an employer (Nextel Communications) that no longer exists. I don't think I have a large amount in there, but I would still like to locate this money and get it into another account. I do not have any means to contact the former employer or any of my supervisors there. So far, I have come up short when looking for it.

My employer offers a target retirement mutual fund investment through T. Rowe Price. The farther away you are from that date the more agressive the investment and as the date gets closer the fund gradually gets more conservative.

My employer offers a target retirement mutual fund investment through T. Rowe Price. The farther away you are from that date the more agressive the investment and as the date gets closer the fund gradually gets more conservative.

 

That's how the funds that we are automatically enrolled in are. But, considering this is 2012, and my fund is 2030, I'm afraid it may be a tad bit too conservative to get the maximum benefit out of whatever amount I'm contributing. At first I liked it because I didn't have to think about it. But now, I'm looking at the fact that I have a lot of catching up to do, and contributing the maximum allowed by the IRS isn't feasible at this point. I can definitely increase...but I don't want to take away from saving in a more accessible account, which I use for emergencies.

1. By max out, do you mean contribute to the point of your employer's match? Or as much as you can comfortably afford to contribute?

 

2. I'm 28, almost all if not all of my 401K is going towards very agressive investments. This is what I should be doing, right?

 

2. Correct as long as you realize there will be individual years where there are dips. I am 48 and all of mine is in equities.

I have another question. I had a 401K through an employer (Nextel Communications) that no longer exists. I don't think I have a large amount in there, but I would still like to locate this money and get it into another account. I do not have any means to contact the former employer or any of my supervisors there. So far, I have come up short when looking for it.

 

 

Nextel merged with Sprint, correct? You should still be receiving quarterly statements.

 

Go here:

 

Company 401k Plans - Sprint Nextel 401k Plan. Features, reviews, ratings.

 

Call the number on there to start. Tell them you used to work for Nextel, had a 401k, not getting statements today.

Everyone pretty much said it all. Contribute as much as you can even over the employer match if it's doable in your financial situation. if you have a Roth option I would start that as well. As you get closer gradually shift to less risk stock/bonds/mutual funds. Most sites have tools that will help you diversify you account based off questions it will ask you and often times there is someone you can call that will help you if you can't do it that way. The world is going to end in this year anyway so I would wait till next year to increase your contribution.

2. Correct as long as you realize there will be individual years where there are dips. I am 48 and all of mine is in equities.

Yep, I rarely even look at it. Don't see the point in getting worked up over it when I won't be touching it for many years

Nextel merged with Sprint, correct? You should still be receiving quarterly statements.

 

Go here:

 

Company 401k Plans - Sprint Nextel 401k Plan. Features, reviews, ratings.

 

Call the number on there to start. Tell them you used to work for Nextel, had a 401k, not getting statements today.

Thank you very much. Going to call in just a minute.

That's how the funds that we are automatically enrolled in are. But, considering this is 2012, and my fund is 2030, I'm afraid it may be a tad bit too conservative to get the maximum benefit out of whatever amount I'm contributing. At first I liked it because I didn't have to think about it. But now, I'm looking at the fact that I have a lot of catching up to do, and contributing the maximum allowed by the IRS isn't feasible at this point. I can definitely increase...but I don't want to take away from saving in a more accessible account, which I use for emergencies.

 

At least get the match - that is free money.

 

All the stock funds will look good YTD right now since there has been a strong pop in stocks since the beginning of the year. Stocks will be more up and down than bond and cash funds.

 

How many funds do you have access to? Are the choices a family of funds - i.e. Fidelity, Vanguard funds?

At least get the match - that is free money.

 

All the stock funds will look good YTD right now since there has been a strong pop in stocks since the beginning of the year. Stocks will be more up and down than bond and cash funds.

 

How many funds do you have access to? Are the choices a family of funds - i.e. Fidelity, Vanguard funds?

 

Definitely getting the match. I'll have to check the funds access. the 401K is with Fidelity...if that helps.

 

Honestly, I feel really, really stupid asking these questions. But personal investing and retirement planning is not something I've had the opportunity to really learn about, or concern myself about up until this point. The only 401K I've ever had prior to this was with Starbucks. And as part time employee, you can guess that my account there really amounted to nothing. :lol: I do still have some SBUX stock, though.....but I don't really know what to do with it.

Definitely getting the match. I'll have to check the funds access. the 401K is with Fidelity...if that helps.

 

Honestly, I feel really, really stupid asking these questions. But personal investing and retirement planning is not something I've had the opportunity to really learn about, or concern myself about up until this point. The only 401K I've ever had prior to this was with Starbucks. And as part time employee, you can guess that my account there really amounted to nothing. :lol: I do still have some SBUX stock, though.....but I don't really know what to do with it.

You can alway donate it to the FKYW Fund!

I'm 36 soon to be 37 this month. I have mine spread across 3 different fairly aggressive funds. I've made as much as 30% in a year but also lost double digit % in a year. The trick is don't look too much and just trust it.