401k Options? Which would you pick?

**Dsquared513** · 01-23-2014, 01:07 PM

Since it seems that you don't have much experience with 401k's, go with a target fund. Just pick which year will be closest to your retirement goal year, so if you've got 30 years until you retire then pick the 2045 one. The target date funds automatically diversify your investment based on how close to retirement you are, the further away you are the riskier the asset class they can choose since you've got time on your side, and as you near retirement they will switch to safer allocations like bonds and such. If you want to be more hands on, then pick the index fund with the best returns and lowest fees. Anything with a fee close to 1% is high, look for something around .3% or so. I picked my own investments last year and my wife went with a target date, I think my returns were 13.5% and hers were 14.7%, so the targets still give good returns, but were both over 30 years from retiring.

**Petunia 100** · 01-23-2014, 01:47 PM

Work for UPS, I see.

According to the plan documents I was able to find online, those Bright Horizon target date funds use the other funds you listed. Those other funds are all index fund, which is great.

According to the info I found, the expense ratios are low (.38 for the 2020 fund). They look like pretty good funds to me.

Well, my link won't work. Google "Bright Horizons Funds" and select one of the PDF links which will pop up.

**disneysteve** · 01-23-2014, 02:21 PM

Do you have any other savings or investments outside of this 401k?

**perdue022** · 01-23-2014, 07:23 PM

Originally posted by disneysteve View Post

Do you have any other savings or investments outside of this 401k?

Thanks for the insight guys! Steve, yes I do. I currently have 10k in a money market account, I also have 2 rental properties, I have invested in some precious metal just recently and I am starting up a Roth IRA here next week.

**agarlits** · 01-31-2014, 12:00 PM

Originally posted by perdue022 View Post

Hello guys

I would greatly appreciate if I could get your advice on which options to pick for my 401k! Out of the options below, which options would you contribute to and what percentages to which? I certainly appreciate all your feedback! Thanks guys!

Target Date Funds
Bright Horizon Income Fund
Bright Horizon 2010 Fund
Bright Horizon 2015 Fund
Bright Horizon 2020 Fund
Bright Horizon 2025 Fund
Bright Horizon 2030 Fund
Bright Horizon 2035 Fund
Bright Horizon 2040 Fund
Bright Horizon 2045 Fund
Bright Horizon 2050 Fund
Bright Horizon 2055 Fund
Short Term Funds
Government STIF
Short-Term Bond Index Fund
Bonds
Bond Market Index Fund
Multi Assest
Global Diversified Asset Fund
Strategic Real Asset Fund
Stocks
S&P 500 Equity Index Fund
S&P 400 Midcap Index Fund
Russell 2000 Index Fund
Intl Developed Cntry Eqty Index Fd
MSCI Emerging Markets Fund
UPS Stock Fund

Regards

Corey

We can talk about this and decide mutually what you should invest in but I'm going to need more information. How long until you retire, how much can you contribute up front and are you going to contribute monthly, quarterly, annually or just whenever you can?

401k Options? Which would you pick?