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Finally, I have decided to join my company's 401k plan

August 15th, 2007 at 07:33 pm

I have finally decided to join the company's 401k investment program. This is with my part-time job, my full-time job does not offer 401k and I have to add to my Ira bi-weekly. Any how they match the first 4%, so of course I will deduct the 4%
I have decided to allocate my funds as follows and hope this is a good move:
-10% Wells Fargo Stable MMK (DSR1) low risk
-10% Pimco Return (PTRAX) Bond this has a medium to low risk
-10% Oakmark Equity (Oakbx) medium to high
-10%Van Kampen Comstock (ACSTX) high risk
-10% Wells Fargo Adv index fund (NVINX) high risk
-30% Dreyfus Appreciation (DGAGX) high risk
-10%Wells Fargo adv growth fund (nvlcx) high risk
-5%wells Fargo small cap (nvsox) high risk
-5% American funds (rerex) high risk

12 Responses to “Finally, I have decided to join my company's 401k plan”

  1. Nic Says:

    Congrats! A 4% match is a good start. Think of it as FREE $$$$$$.Smile

  2. katwoman Says:

    Good for you for jumping on the bandwagon!

    My brother went high risk on a 4K investment and years later it grew to 30K.

  3. terri77 Says:

    Good for you! Do plenty of research and reading about investing so you feel comfortable the choices that you have made.

  4. scfr Says:

    Congrats on joining the 401k!
    Have you tried running your allocation through the Morningstar X-Ray to see how it comes out? You don't have to use your real dollar amounts; you could just make up numbers to see how your percentages turn out. For example, you could enter $1,000 for each percentage you are allocating, for a pretend total investment of $100,000.

    http://portfolio.morningstar.com/NewPort/Free/InstantXRayDEntry.aspx?dt=0.7055475

  5. veronak Says:

    Thanks everyone, and scfr I will definately check out the site

  6. fern Says:

    While i'm not familiar with any of these funds indidvidually, i don't think an index fund would be considered high risk. My only comment would be to make sure there is no fund overlap in the objectives of those funds you've picked. If you over-diversify, then you may as well just stick it all in an index fund, which will always have lower annual expenses.

    I'd also check and compare the annual expense fees of each.

  7. reflectionite Says:

    i always see stuff about 401k but because i live in australia, i have no idea what it is! what is it?!?!

  8. veronak Says:

    I really don't know the ends and out ( I am still learning) but it is a saving plan towards retiremnt through your employer in which you contribute to before taxes upto a certain amount. In most cases the employer will match your contribution upto a certain percent. The funds in wich you/employer contribute are then invested (stocks, bonds, mutual funds)

  9. reflectionite Says:

    oh i see Smile we dont have anything like that here. only super which your employer contributes 9% of your total earnings into a super fund. (it doesn't get deducted from your pay though, it's on top of it). i think some workplaces do 10%, and government employees get 13% or something like that.
    also if you put extra money in, the government contributes $1.50 for each $1 that you put in, up to $1500 per year.

  10. veronak Says:

    that is nice, here uncle sam wants his share of your saving

  11. reflectionite Says:

    hmm. it's funny the different ways different countries do things, isn't it?
    like for example! we always whinge here because we only have 5 free tv channels. but you get a hundred or more with pay tv.
    i have heard that in america you get a lot of free channels. well. more than five anyway. haha.

  12. fern Says:

    The only "free" channels here are shopping channels where they try to sell something to you 24/7. Even to get just the 'basic' channels you have to pay for cable TV.

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