I am 51 years old, just starting to contribute to 401k plan at my work. I don't know where to put my money.

Question

My options are

MFS Money Market

MFS Bond A

US Stocks; massachusets investors growth a, mfs core equity a, mfs mid cap growth a, mfs new discovery a, mfs total return a, mfs value a,

Internation Stocks; mfs global growth a

Assest Allocation; mfs conservative allocation a, mfs moderate allocation a, mfs growth allocation a, mfs agressive growth allocation a.

Answer 1

I opened my IRA last year but sold it back after there wasn't much gain in it. This year I bought into the emerging markets fund which projected a 27% yearly gain. Those markets are currently trending down but they will recover and that's where I'm going to stay for now. This by no means is a recomendation to do the same. Most all, even the good stocks have been beaten down to a point where a sound companies stock is a good deal.

80% of mutual funds under perform the market.

Answer 2

Since you don't appear to know that much about investing, I would pick either mfs moderate allocation or mfs total return.

Since you are just starting your 401k, and if you have no other retirement investments, max out your 401k.  In the meantime, hit the books and learn about investing, asset allocation diversification, etc.  Once you do this, then you can pick individual funds.

Answer 3

If you get to pick on all the lists on the link, pick utilities otherwhise midcaps.  Stay away from bonds.  They are there to hold wealth when you have retired, not gain wealth.  Their gains don't beat inflation, but they don't go down either.

Lifetime funds will do all the work for you.

A downturned market may actually help you as you will be buying stocks on the low end and may actually get a better return when they recover than if they were high going higher.