401(k)/(a) contribution strategy

[cptacek]

When I think of "earning interest", it is in the vein of savings account interest. As in, if I keep this money in my savings account, then I am guaranteed the interest and I won't lose the principal.

If you are investing in a stock fund or a bond fund, the value of that fund can go up or down. Sure bonds pay interest. But if you invest in a bond fund and the value plummets, you will lose money. And yes, some - not all - stocks pay dividends. But again, you can lose money.

So, semantics aside, I think my original comment is still valid. If you know that whatever you are investing in will be worth less in January - March, or on the flip side, you know that the money you put in in January - March will be worth more April - December, then invest everything in January - March if you can swing it. If you don't know that, then spread it out over the year.

[InDebtInDC]

If you are investing in a stock fund or a bond fund, the value of that fund can go up or down. Sure bonds pay interest. But if you invest in a bond fund and the value plummets, you will lose money.

"The Fund invests in very-short-term Treasury securities specially issued for this plan. This is equivalent to a high-yield stable value fund, and there is no risk of loss. By law, the interest paid by this fund is equal to the average rate of return on outstanding Treasury securities with four or more years to maturity."

Good comments though. I will try to invest more up front whenever possible.

[Tree0164]

You probably won't be able to do it because most 401Ks have a limit on 70% of income going towards the 401k.

Your best bet is to check with the plan admisntrator or if you have online access-check online and contribution limits.

[cptacek]

The fund options themselves are pretty limited. I diversify evenly between small cap, large cap, and international.

So you diversify evenly between small cap, large cap, and international, but then claim to only invest in this very-short-term Treasury securities with a guaranteed return? Which is it?

[InDebtInDC]

So you diversify evenly between small cap, large cap, and international, but then claim to only invest in this very-short-term Treasury securities with a guaranteed return? Which is it?

It's one of the options I have available. Lately though I've been inclined to park my money in this fund and let the other funds play out.

Please, I never claimed to only invest in the Treasury fund. As I said above, normally I would put my money evenly into those 3 funds, but due to the market, lately I've been inclined to put all my money in the Treasury fund.

I should buy more shares while the prices are low. That's what people say. Maybe they just don't want investors to panic and pull all their money out.

[terri77]

I put $300 and $100 into my 457(b) and 403(b) respectively every two weeks. I can contribute the maximum $15.5k to each, but I'm obviously not meeting either maximum.