Young invester questions!?

Question

How to invest for a 20 year old?!?

I'm a full time working 20 year old looking at investing in Mutual found and was wondering how i get involved with buying and later on selling mutual founds.

I would like to invest

1/4 in a growth income fund

1/4 in a mid cap equity fund

1/4 in a International fund

1/4 in a Aggressive growth fund

I'm also enrolled in a 401k plan at my work

They match $.50 to the $1 up to 3% but dont understand how the 401k works with invewsting please help me to understand it better!

Please let me how I can start creating a portfolio and how to get started in mutual funds.

Thanks!!

Answer 1

Who does your co's investments? Fidelity? Contact them they are more than happy to help you with personal investments as well as explaining it all to you

Answer 2

Max out the matching part in the 401(k). Just tell the company that is what you want to do.

I would include 25% in the S&P 500 for your growth fund. reinvest all dividends.

I am not a big International fund guy. way too much risk. Maybe 5-10% in a global ETF index may be ok.

iShares S&P Global 100 Index (ETF) (NYSE:IOO)

good luck!