How should I elect 401(k) <span title="investments/contributions?">investments/contributions...</span>

Question

I am just starting out with an employer's 401(k) offering and must allocate my contribution to the plan between 31 investment sources. I've never heard of most of these investment funds. Does anyone know where I would go to find information that could help me make my decision?

Answer 1

Base your choice on your age (ie, how long you have until retirement)...the further away 69.5 is, the more aggressive (and &quot;high risk&quot;) your choices should be, so that you can take advantage of volatility...

Answer 2

Morningstar.com can tell you what each particular fund invests in and what it&#039;s expenses are.  You don&#039;t need all of them - basically, you need exposure to domestic stocks, international stocks and some fixed income.  If they offer a target-date fund, that is usually a safe choice initially.  You can shift your investments later if you choose.