I have a 401k through my employer and I contribute 4%, because that is the company match. It was originally through Merrill Lynch, and just recently changed to Fidelity about two years ago. I am 31, and I have been in it for about 8- 9 years. There were a few years where I bumped it down to only 1%, because I needed the extra money in my paycheck. Stupid, I know, but water under the bridge. Back up to 4% and has been for the last 4 years or so. I've got around $35k in it at its highest.
I am fully vested. I am not sure what that means, but I am that. With my employer, it takes 7 years to get that. Can anybody explain this?
I have my contributions going 100% into vangaurd target retirement 2050, stock symbol VFIFX. It does pretty good I guess, but I have no idea if this is the best it could be or if it is a bad choice, etc. I can remember when it was with Merrill Lynch, my contributions were split three ways or so into several different kinds of accounts.
Looking at all of this MMM stuff has gotten me thinking, maybe I should be taking more risk and putting my money into higher risk account to gain more money now. I guess i do have the option to change it whenever I want. Is there an option that would be better earning through Fidelity?
Like I said, I don't know much about it, but it hurts to watch is rise and fall. It has been as high as $35k and as low as $28k in the past year alone.
Also, I have some debt to pay off, and when that gets paid off I will raise My contribution. I guess maybe I should not worry that my employer only matches 4%, and just continue to raise my contribution. I guess part of me feels like since they only match 4%, that's what I should do.
Also, I hear a lot of talk about IRAs and such. Just wondering if 401k is my only option or if one of these personal accounts would benefit me and how.