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I recently got my first job after grad school. All of a sudden a million options are being thrown at me. I don't have enough knowledge to know if I am sinking or swimming. My current plan is to max the 401k (no match) and the Roth IRA and there will be a bit left over for playing with the stock market once I save some money, my parents are currently my emergency fund backup in case I lose my job or my car breaks down etc.
Anyways to the point of the title of this post. My company offers a 401k plan through American Funds. I am unsure with all the options about which are the best out of the options. I don't like the target fund date retirement plans as it charges at least 1 percent gross expense ratio.
My options are:
Growth Investments %Gross expense ratio:
Europacific Growth Fund .87
New World Fund 1.06
Smallcap World Fund 1.06
The Growth Fund of America .68
Growth and income investments % Gross expense ratio:
Capital World Growth and Income Fund .81
Fundamental Investors .66
Equity income investments %:
Capital Income Builder 0.67
Balanced Investments
American balanced fund 0.65
Bond investments %:
intermediate bond fund of america .71
the bond fund of america .66
Cash equivalent investments %:
the cash management trust of america .69
My asset allocation that I was thinking of was about 70 to 80 % growth or growth and income 5 pct bonds and 10 pct equity. Although as mentioned before I still feel very clueless in the grand scheme of things so let me know if this is a poor decision. Whew all that being said and done, anyone have any thoughts on which to choose from for equities bonds and growth and growth and income?
Thank you in advance for all your help.
Anyways to the point of the title of this post. My company offers a 401k plan through American Funds. I am unsure with all the options about which are the best out of the options. I don't like the target fund date retirement plans as it charges at least 1 percent gross expense ratio.
My options are:
Growth Investments %Gross expense ratio:
Europacific Growth Fund .87
New World Fund 1.06
Smallcap World Fund 1.06
The Growth Fund of America .68
Growth and income investments % Gross expense ratio:
Capital World Growth and Income Fund .81
Fundamental Investors .66
Equity income investments %:
Capital Income Builder 0.67
Balanced Investments
American balanced fund 0.65
Bond investments %:
intermediate bond fund of america .71
the bond fund of america .66
Cash equivalent investments %:
the cash management trust of america .69
My asset allocation that I was thinking of was about 70 to 80 % growth or growth and income 5 pct bonds and 10 pct equity. Although as mentioned before I still feel very clueless in the grand scheme of things so let me know if this is a poor decision. Whew all that being said and done, anyone have any thoughts on which to choose from for equities bonds and growth and growth and income?
Thank you in advance for all your help.
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