401k and todays stock market.

[jIM_Ohio]

Keep putting more money into 401k, come back in 3 years, and let us know if you are still complaining.

I remember being 3 years into investing when the 2000-2002 bear hit and took 50% of my assets into thin air. I had $7000 at the time.

I now have more than $160k set aside 7 years later. I know I did not put in 160k into the account, so I am doing quite well.

[disneysteve]

I think at 25, the current market rollercoaster shouldn't be a concern at all. You have many, many years to ride out any market correction. Over the next 40 years, I think you can be quite certain that whatever you buy today will have grown considerably, even if it falls in the short term. So just keep putting money in month after month. When the market is down, you're money will buy more shares and you'll benefit more when the market goes back up. Congrats on funding a Roth and a 401K at such a young age.

[InDebtInDC]

The target funds are nice, but I do not think they are aggressive enough. You are very very far away from retirement. I think you can afford to be a little more aggressive than what the target funds can offer.

I would encourage you to be more aggressive and take more risks with an aggressive high growth fund. Maybe once you hit 30 you can back off to more moderate growth funds.

That's just my opinion though. Not everyone is aggressive as me.

[Mistawho]

If you're only 25yo than you might want to look into the Vanguard target retirement funds. I plan on using the 2040 target retirement fund as 0f 1/08.

Well my ROTH IRA is a 2040 target fun with T Rowe Price.

I don't have that choice with my vanguard.

Here our my choices for 401k.

Vanguard LifeStrategy Consrv Grwth - VSCGX
Vanguard LifeStrategy Growth Fund - VASGX
Vanguard LifeStrategy Income Fund - VASIX
Vanguard LifeStrategy Mod Growth - VSMGX
Vanguard Federal Money Mkt Fund - VMFXX
Vanguard High-Yield Corp Fund Inv - VWEHX
Vanguard Inter-Term Treasury Inv - VFITX
Vanguard Total Bond Mkt Index Inv - VBMFX
Vanguard Wellington Fund Inv - VWELX
Baron Asset - BARAX
Baron Growth - BGRFX
Royce Total Return Serv - RYTFX
Vanguard 500 Index Fund Inv - VFINX
Vanguard Growth Index Fund Inv - VIGRX
Vanguard PRIMECAP Fund Investor - VPMCX
Vanguard Selected Value Fund - VASVX
Vanguard Windsor II Fund Inv - VWNFX
Janus Worldwide -JAWWX
Vanguard Emerging Mkts Stk Idx Inv - VEIEX
Vanguard International Growth Inv - VWIGX
Vanguard REIT Index Fund Inv - VGSIX

Any suggestions? My current 401k portfolio is above.... The VERY first post. i've had my 401k since 22 years old.. now 25 years old.....

[m3racer]

If you're only 25yo than you might want to look into the Vanguard target retirement funds. I plan on using the 2040 target retirement fund as 0f 1/08.

[InDebtInDC]

When in vesting for your retirement, please invest for the long term. If you're well diversified, short-term market fluctuations should not affect you.

I wouldn't worry about it until you're much closer to your retirement horizon.

Think about it this way. The more money you put in while the market is down, the more shares you can buy. When the market bounces back, your shares will be worth more. It's like buying stocks on sale.


A well-diversified portfolio should return you money no matter what the market is doing: up, down, same. You should hedge your position in view of your retirement horizon.

You may want to consult a financial planner.

[sweeps]

No problem, kv

[kv968]

I think you have confused "Mistawho" and "Newbie". Newbie says he is 100% in an S&P 500 fund.

Yes I did. Sorry about that Sweeps.

[sweeps]

Actually ~20% of the portfolio is int'l. The only problem I see with that is ~17% of it is in emerging markets. You may want to add some established int'l market exposure to your holdings.

I think you have confused "Mistawho" and "Newbie". Newbie says he is 100% in an S&P 500 fund.

[kv968]

Nice job, Newbie. Just a suggestion though... you might want to gradually move 15-20% of your money to international stock funds. You have all your eggs in the large U.S. company basket.

Actually ~20% of the portfolio is int'l. The only problem I see with that is ~17% of it is in emerging markets. You may want to add some established int'l market exposure to your holdings.

[sweeps]

Nice job, Newbie. Just a suggestion though... you might want to gradually move 15-20% of your money to international stock funds. You have all your eggs in the large U.S. company basket.

[Newbie]

All I see in my 401k is a stable value fund but it has a .80% fee!

I'm 26 and I have all my stuff in an S&P 500 index while I learn more from sites like this one

[sweeps]

Mistawho: At 25, you shouldn't be worrying about this... just keep putting money into your 401k, you're buying more stocks at a lower price. This is just a minor blip that won't make the slightest difference in the long run.

Newbie: There is such an option... normally there is a money market fund or similar fund you can put your money into. But if you have a long way to retirement, it's not recommended.

[Mistawho]

That's a blanket statement that doesn't apply to everyone. What stocks are you riding?

For my employers 401k here are my funds.

22.96% Baron Growth Fund - BGRFX
4.22% Vanguard LifeStrategy Growth Fund - VASGX
6.46% Vanguard LifeStrategy Mod Growth - VSMGX
20.97%Vanguard 500 Index Fund Inv - VFINX
8.44% Vanguard Growth Index Fund Inv - VIGRX
19.73% Vanguard PRIMECAP Fund Investor - VPMCX
17.33% Vanguard Emerging Mkts Stk Idx Inv - VEIEX

and ROTH IRA is T Rowe Price retirement 2040 fund. TRRDX.

I was asking for a suggestion on what i should do. I hate losing this much money.

[m3racer]

That's a blanket statement that doesn't apply to everyone. What stocks are you riding?