401k Investment options?

Canuck5 said:

^^^^^^^^^^ she can change her mind monthly if she wants to ..... but that would be a bad idea.

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I'm not suggesting that she should. I'm just saying that, as a young woman, she might be inclined to change her mind.

centerpin fan said:

I'm not suggesting that she should. I'm just saying that, as a young woman, she might be inclined to change her mind.

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No, I knew what you meant and it was good advice

Artfuldodger said:

I think I'm seeing this as bonds, cd's etc is like investing on your own money and stocks is investing on businesses profits.

While it's true that one is safer than the other, there isn't nearly the profits to be made. If one is in their 30's they might want to gamble more in say an S&P 500 fund but stand a chance to lose more.

I guess the million dollar question is, "how much of one's investment should be placed in say the riskier S&P 500 fund vs the safer bonds funds?"

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Bonds aren't safer and the s&p isn't riskier.

The "risk" is all in the timing on either one and YOU are in total control of that.

Start NOW while the risk is low, you have little to invest, so it won't drive you out of your mind like your life depends on it. You watch, you learn, natural progression you see it all get bigger.

The government, the fed reserve, and all of big business all are running the same scam. They all want the same thing. The controlled expansion/devaluation of the money supply. Inflation.

Controlled, so it's just enough you don't catch on to the con. But it has to expand or it all will collapse like a worn out Ponzi scheme.

If that happens it won't matter what you did with your money. So get on board the money train or get left behind. It's that simple.

Here is the Life Cycle comparison chart;

centerpin fan said:

I looked at some of those life cycle funds, and they were just under .6.

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I looked again and they were in fact .06 and not .6. Maybe they have a different set up for Delta employees.

The S&P Index Fund cost is 0.01% which is way better than the cost of the Targeted funds.

Artfuldodger said:

I looked again and they were in fact .06 and not .6. Maybe they have a different set up for Delta employees.

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That might be the case. I just went to the Fidelity site and looked at expenses they charge the average investor.

Artfuldodger said:

I looked again and they were in fact .06 and not .6. Maybe they have a different set up for Delta employees.

The S&P Index Fund cost is 0.01% which is way better than the cost of the Targeted funds.

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OK, I just noticed my mistake. The funds in post 44 are BlackRock funds, not Fidelity. Fidelity is the custodian of Delta's 401k.

https://www.blackrock.com/investing...fined-contribution/lifepath-target-date-funds

Canuck5 said:

I wished somebody would've told me, 35 years ago, put your money in an S&P 500 Index Fund and forget about it. A no brainer.

http://www.fool.com/mutualfunds/indexfunds/indexfunds01.htm

40% of an S&P 500 funds money is made overseas, so you really don't have to invest Internationally.

When Warren Buffet passes, it is directed that his wife's estate gets put 90% in a low cost S&P 500 fund and the balance in cash for her to live off of.

Just my humble opinion after making a couple (well, more than a couple) investing mistakes.

At minimum, she needs to put enough money in, monthly, to get the Delta match.

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I just started my 401k about 8 years ago and It just made sense to get the $ my company offered me if I saved it.........NO BRAINER IMHO. I only recently started increasing a %, but then went to 10% and I dont miss it, really.

At the time when I first started, I got push back from my wife who said we needed the money now........when I show her my dashboard these days, she is all smiles.

I wish I had done this my whole life and I stress to my kids this same aspect.......Where do you want to be in 15, 20, 30 years etc..

bfriendly said:

I just started my 401k about 8 years ago and It just made sense to get the $ my company offered me if I saved it.........NO BRAINER IMHO. I only recently started increasing a %, but then went to 10% and I dont miss it, really.

At the time when I first started, I got push back from my wife who said we needed the money now........when I show her my dashboard these days, she is all smiles.

I wish I had done this my whole life and I stress to my kids this same aspect.......Where do you want to be in 15, 20, 30 years etc..

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You're doing what's called LBYM ....... Living Below Your Means! Getting in good financial habits early, pays dividends down the road.

Warren Buffet wins $1 million dollar bet

Another vote for simple index funds, if you've got a several year time horizon.

http://fortune.com/2017/12/30/warren-buffett-million-dollar-bet/

http://www.businessinsider.com/warren-buffett-wins-million-dollar-bet-against-hedge-funds-2018-1

I have 20% in a target fund and 80% in index funds. Some target funds are decent but a little too conservative for me. I don't pay attention much to the fees (mine aren't that high anyway) if the return is there. .06 is not much IMO.