[TW Financial Experts] Help Pick Investment Strategy

S

Shadow(of)Death

Veteran X
Now that I've got all my debt paid off and money is starting to just sit in the bank, I've decided that I maybe should take advantage of my companies 401k matching. They will do up to 6%.

So first things first, I'm 25 and what I'll be making five years from now may completely put to shame what I'm pulling right now. So is it even worth it to do 6% - maybe at the very least to form good habits?

By default we work with Nationwide. I don't know much about this stuff, but I assume I can really choose any investment outfit I want? I can look into this if Nationwide is no good.

Finally, below are the standard models they've provided. Which one should I go for? I can of course do a custom model if you've got some good ideas.

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By way of thanks, here is an interesting blog I came across recently.
 
Put your money in the trends of growing populations. Mexicans like tacos - buy Taco Bell and Del Taco. Blacks like McDonalds, KFC, Popeyes, etc... invest in them. Also Walmart.
 
aggressive of course

and even if you're not making much now to contribute, the compound interest for saving early makes up for it in the end
 
at your age i would choose aggressive

i know for me vanguard had a sliding scale where it would change from aggressive down to more conservative gradually as i grew older

and of course max out what they're willing to match
 
If you put anything in treasuries at 25 you're an idiot. I'm 26 and I've been fully aggressive since I started working ~5 years ago.
 
uh dude
ALWAYS put in what your company will match
thats free money

the fact that you havent been taking advantage of that immediately after starting is not a good sign.
 
Last edited:
rootb33r said:
If you put anything in treasuries at 25 you're an idiot. I'm 26 and I've been fully aggressive since I started working ~5 years ago.
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i think calling anyone with secure investments @ 25 an idiot is a bit extreme

anyways,

1. max out the matching, don't contribute anything else unless its for tax purposes
2. go aggressive because you're young and you have time on your side
3. any extra money you want to put away should initially go into a roth ira, permanent insurance, or your investment of choice (in that order)
 
XTasy said:
+ if you max out what ur company is willing to match that $$ is pre-tax
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any money in the 401k is pre-tax, but if you wanted deductions you should just do a traditional ira with the extra money that isn't being matched, since you don't have to deal with the hassle later if you move companies
 
yeah completely agree with calx

last thing is that it also depends on ur situation btw

if you plan on withdrawing money before you hit 59.5 or whatever, you may want to consider a roth ira instead. for instance, when i worked i knew i was going to go back to school, so i decided on a roth ira instead. i wanted the more lenient withdrawal options of a roth ira as using the money for education qualifies as one of the withdrawal exemptions
 
also be aware that depending on how your company structured the 401k, it will be very hard to get your money out before you hit retirement w/o penalties

so while company match is "free" money, it's not your money until a long ways away from now

you'd be surprised how many idiots there are out there who don't understand why their retirement acct is not a savings acct
 
as far as retirement accounts that have lenient pre-age-59.5 features, permanent life insurance is good too, similar to a roth minus the annual limit and salary requirements
 
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