my first real investments

[readytorock]

When I took a closer look at my retirement plan at work, I realized the money my employer was contributing every year was simply sitting in a cash reserve, earning minimal interest, and wasn't being invested!!

I really wish someone had shown me these forums/blogs six years ago when I entered the work force...

So today I used the money that had accumulated over the last six years to buy numerous shares of the following (spread evenly 25% across each):

OIGNX International Growth Fund
CGRNX Value Fund
OPMNX Main Street Small Cap Fund
OGINX Global Opportunity Fund

I've also set -up allocations for any future monies to be spent evenly across these four funds.

[noppenbd]

Looks pretty good allocation-wise, and I congratulate you on taking the plunge to be actively invested. It really is a shame that this wasn't explained to you better when you started working. On the other hand, returns haven't been stellar in the last 5 years (to say the least) so you shouldn't worry about it too much.

One thing to keep in mind is expense ratios. The Oppenheimer funds you chose are not egregiously expensive, but you should consider if lower cost alternatives are available in your 401k. You can find the expense ratios in the prospectuses for the funds or on any financial website (morningstar.com is a good one).

[readytorock]

Thanks. My step-dad freaked when I told him I invested it. He went on and on about how his friend is a "bank person" and told him to buy nothing but CDs with how the economy is...

I explained to him that his friend told him this because of my step-dad's age (50) and that he would soon need the principle to be available to him, but would have told someone my age (25) to invest, invest, INVEST!

He didn't agree, we ended the conversation.

It's good to come here and have people I can share this with. Thank you!

[disneysteve]

Thanks. My step-dad freaked when I told him I invested it. He went on and on about how his friend is a "bank person" and told him to buy nothing but CDs with how the economy is...

I explained to him that his friend told him this because of my step-dad's age (50) and that he would soon need the principle to be available to him

I wouldn't tell a 50-year-old to buy nothing but CDs either.

Of course, I'm not sure what a "bank person" is. Does that mean he works at one, owns one, robs them or what?

[readytorock]

I wouldn't tell a 50-year-old to buy nothing but CDs either.

Of course, I'm not sure what a "bank person" is. Does that mean he works at one, owns one, robs them or what?

I'm not sure, I've never met his friend. I doubt he's a financial planner given the suggestion, my grandmother just passed away last month and my step-dad took all the money he inherited and bought CDs on this guys' recommendation.

Maybe a teller, or loan officer. I don't know.

[disneysteve]

n, my grandmother just passed away last month and my step-dad took all the money he inherited and bought CDs on this guys' recommendation.

Actually, that might not be such a bad course of action in that situation. Most advisors recommend not rushing to invest (or spend) an inheritance because there is often a lot of emotional baggage that comes along with that money. It can be best to just park the money somewhere safe for 6 months to a year while you are grieving the loss of your loved one, settling their affairs, and have some time to think about what would be best to do with that money and what the giver might have liked you to do with it.