Author Topic: 401K help  (Read 1096 times)

Axioligy

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401K help
« on: September 15, 2016, 05:27:47 PM »
Hey all, I've been enjoying the blog for the last few months and have really started to get serious about investing.  I'm still working on getting my wife fully on board, but I just maxed out my 401K and am trying to decide which plan is right for me.  Right now I am invested in target date funds, but I don't know if that's my best option.  I got scared and unsuccessfully "timed the market" and moved most of my funds into the 2020 fund (125k) you see selected.  My current contributions are going into the 2050 fund (2k).  I don't know if I'm ready to move the bulk of my savings just yet (I guess I'm still timing the market and expecting a correction), but I'd like input on where to invest going forward (and will eventually move everything).
A bit about me, I'm 33 (wife is 30), our only debt is our mortgage and my wife's car (I know... like I said, still trying to get her on board) and our combined income is just over 100k.  I'm currently trying to get our house ready to sell so we can move closer to work and that should net us between 30-60k.  I only recently got my wife to start investing in her 401K and she has 10K saved.  I would like to retire by 50, but my wife thinks 55 is more reasonable.
Any help is appreciated, thanks for your time.

SwordGuy

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Re: 401K help
« Reply #1 on: September 15, 2016, 05:33:16 PM »
You clearly already know how to move money from one fund to another.

The Target date funds typically have a higher expense rate than non-target funds.

It's a lot of money to pay for someone to do what you already know how to do, and only need to spend 15 minutes a year (at most) on doing.


MDM

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Re: 401K help
« Reply #2 on: September 15, 2016, 09:04:37 PM »
My current contributions are going into the 2050 fund (2k).
...
I would like to retire by 50, but my wife thinks 55 is more reasonable.
Going into the 2050 fund is very reasonable.  The expense ratio is already so low (0.09%) that even if you put everything into the lowest cost option, VIIIX, you would save only $7/yr for every $10,000 invested.  Up to you whether to move the 2020 fund money back(?) into the 2050 fund.  Even if there is a correction of some sort, you will probably do at least as well as Bob.

There is no way to know now whether you will be able to retire at 50 or 55, or 45, or 65 - just so the best you can and things will become clearer with time.  Good luck!

Axioligy

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Re: 401K help
« Reply #3 on: September 16, 2016, 04:19:46 AM »
Thank you both for your input and I enjoyed that article.  It sounds like I just need to concentrate on saving more and focus less on market fluctuations... that last part is easier said than done but I'll work on it.