New to my 401K - What should I be asking?

[~Ari~]

I'm a long time reader, but have only posted a couple of times and looking for some guidance!

The Financial Advisor from our 401K plan at work is here to visit today. I am now eligible for the plan because I went from part time to full time. I feel like I should have a bunch of questions to ask him, but don't know what I should be asking, as I am so new to all of this. The company I work for matches dollar for dollar up to 3% and .50 per every dollar up to 4%. Currently, I signed up to contribute 5%, and company match at 4%. Plan to do more for sure, but that is what he enrolled me in for today. He also automatically signed me up for the 2050 retirement plan through American Funds - I didn't get to see any other options. I'm assuming I have other options? I only make $12.00 an hour currently - will be getting a raise ($13-$14) in the near future and plan to save the difference in my 401k when the time comes ( I also am 23 years old, if that helps any). Any advice is welcome - as I am so new to all of this! Thanks again in advance!

[neo von retorch]

Yes - you almost certainly have other fund options. The advisor likely gets commissions from the fund managers (i.e. American Funds in this case) for getting you into those funds. Find out the expense ratios and if you're feeling bold, ask the advisor how he gets paid.

[~Ari~]

Never even thought about the expense ratios - thank you!

[dandarc]

Never even thought about the expense ratios - thank you!

That is probably the single most important thing to know if you're going to invest in mutual funds.

Get a copy of the plan documents - there should be a list of your investment options somewhere.

[ekimatuan]

Read the Stock Series here: http://jlcollinsnh.com/stock-series/

Many people suggest low cost broad market index funds as the way to go. I tend to agree. Stay away from high cost, 'Target Date' retirement plans like the 2050 plan you are currently in.