Question:

401 (k) help investments?

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I need help with choosing my investments for my 401 (k). I currently have 3 of the options selected to choose from with 20% in EAFE International Index Fund, 20% REIT Index Fund, and 60% Bright Horizon 2035 Fund each investment. . I included below my list of investments. Help me choose what my best options are. Also i am 27 and have been with company for 8 years and I have been contributing 6% the past 4 years and just increased to 10%.

Government STIF 0% %

Stable Value Fund 0% %

Bond Market Index Fund 0% %

Balanced Fund 0% %

S&P 500 Equity Index Fund 0% %

S&P 400 Midcap Index Fund 0% %

Russell 2000 Index Fund 0% %

EAFE International Index Fund 20% %

REIT Index Fund 20% %

Bright Horizon Income Fund 0% %

Bright Horizon 2015 Fund 0% %

Bright Horizon 2025 Fund 0% %

Bright Horizon 2035 Fund 60% %

Bright Horizon 2045 Fund

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2 ANSWERS


  1. Congratulations.... increasing your 401K to 10% is a move that your future self will always be proud of.

    The symbols would have been helpful.......  What you need to design first is an "asset allocation" model & then pick your funds using that criteria.

    Here's two books to read that will be of inormous help to you for decades after yoy read them;

    401K For Dummies

    Mutual Funds For Dummies

    You're on the right track!!!!!!


  2. I don't know why you are going into the 2035 fund. Perhaps I did the math wrong, but if you are 27, and plan to retire at 65, that is 38 years from now, 2008+38 years = the Bright Horizon 2045 fund. I would not put 20% into a REIT, at this time. They are on the decline and haven't hit bottom.  Put at least 10% into the Russell 2000 index- these are small cap stocks and tend to do very well over time ( meaning the next 38 years). I would consider the balanced fund and the income fund. If you can reinvest your dividends in the income fund, your position and profits should grow over time. You need to look at the prospectus before allocating. Additionally, you should be able to find an allocation suggestion on your 401K website. Good luck!

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