Maxing Out Contributions to 401k – What funds/investments to invest

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I’m 31 years old and I just opened a 401k through my W2 employer that I plan to max out the contributions every year at $18.5k/year.

I already have a SEP-IRA through Vanguard (advisor managed) that I am maxing out as well each year and it does well.

This 401k is different though because I need to chose the investments (as you all know) and I was hoping to get some advice on what I should go with.

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I’ve included the options they’ve provided here:

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Comment:

Get a list that has the expense ratio, and scratch out the ones with exorbitant fees. Then simply do a search for the ticker symbol to see how it has performed in the past ~5 years (not a guarantee it will do the same, but it’s a start). I did my 401k as 30% bond/70% stocks.

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Read up a few articles on how aggressive you want your funds to be.

www.thebalance.com/how-much-of-my-money-should-be-in-stocks-vs-bonds-2388518

money.cnn.com/retirement/guide/investing_basics.moneymag/index7.htm?iid=EL

www.401khelpcenter.com/401k_education/value_of_asset_allocation.html

 

h/t dkextbmx

 

Disclaimer: This is a guest post and it doesn’t represent the views of IWB.

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