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Thebigguy
02-19-2014, 03:49 AM
So Im younger. Are these plans good?

My job matches up to 4%, I have been doing 6% of my own for 12 months now.

Most of it goes to the 2060 target date fund. I recently did some research and left 50% to that and broke up the other 50% Euro Pacific, Washington Mutual and another one that I canít remember the name of right now. I want to put my $ into the more riskier ones. How do I determine that? My mindset is I only contribute what I can afford anyway, and I definitely have the gamblers mentality. Any advice? Also last year my company was bought out, we had to cash out the 403bís that we had. The new company did not except transfers. So I had to take my money without penalty, but they took like 20% right off the top. It seemed ridiculous. Will that affect me negatively in the future?

whodoyoulike
02-19-2014, 06:59 PM
So Im younger. Are these plans good?

My job matches up to 4%, I have been doing 6% of my own for 12 months now.

Most of it goes to the 2060 target date fund. I recently did some research and left 50% to that and broke up the other 50% Euro Pacific, Washington Mutual and another one that I canít remember the name of right now. I want to put my $ into the more riskier ones. How do I determine that? My mindset is I only contribute what I can afford anyway, and I definitely have the gamblers mentality. Any advice? Also last year my company was bought out, we had to cash out the 403bís that we had. The new company did not except transfers. So I had to take my money without penalty, but they took like 20% right off the top. It seemed ridiculous. Will that affect me negatively in the future?

I'm not a financial planner but,

Are these plans good?

Depends on what they offer. It looks like you have a long work (career) life ahead of you. 6% is good. At least contribute the matching 4%.

I want to put my $ into the more riskier ones.

Why? If you think the U.S. economy will continue to grow, invest in the S&P 500. Check to see how the 2060 Target fund is invested. It's probably okay. You'll sleep better.

Also last year my company was bought out, we had to cash out the 403bís that we had. The new company did not except transfers. So I had to take my money without penalty, but they took like 20% right off the top.

Weren't you able or given the opportunity to roll it over to a self directed IRA?

Will that affect me negatively in the future?

I'm pretty certain it will. The tax part is lost. Look into a Roth IRA for the remaining amount. JMO, the Roth IRA is a pretty good long term vehicle.
Don't become discouraged and keep investing.

RaceBookJoe
02-19-2014, 07:54 PM
If you are young you can get away with allocating some money for more aggressive investing. As you get older you might want to get more conservative. Most funds give a synopsis of what their risk is. Best thing about funds is that they are already diversified for the most part. Agree with the above poster that you should also open a Roth IRA...only prob is yearly contribution is limited to $5500 right now. Money contributed is taxable but growth/withdrawel is tax-free. Im not a financial advisor, just passing along some info.