I am 20 years old with 5k in a 401k...what should i do with it?

Question

I am 20 years old with 5k in a 401k...what should i do with it?

Answer 1

You should keep adding to it, for one....and you should have it divided among two or three of the " funds" that your plan offers. For right now at least one of the funds you are invested in should be " international" or " global"..( if there is one in your plan get at least 30 or 40 percent of your money going that way)

None of it probably makes much sense to you right now...but after six months or a year...compare what your funds have made to other funds in the plan...either on-line or in reports that your plan sends you. Then make some time..some day you're absolutely bored, or it's raining or cold...and sit at the computer and check on " learning investing" sites ( yahoo/finance or moneycentral/msn) and try to slowly figure out what your money is doing for you...and what you can do to make it earn more money for your future. I know at twenty that sounds pretty boring...but if you get the ball rolling and SEE what a little knowledge can DO..you will get a lot more interested in things and change your long-term totals buy 50 times over what a " sit and do nothing 401" would make for you.

Answer 2

Better put your money in bank in Eastern Europe. You will get a 12% APY with NO RISK AT ALL because all deposits are insured by the government. No fees. No risk. No taxes.



12% annual return is guaranteed

I have opened such a high yield account 5 years ago. Email me for more info.

http://answers.yahoo.com/my/profile;_ylt=ArMRJEbX1po0xFJIUGc3vGuvxQt.;_ylv=3?show=UF6Pbs8Eaa

Answer 3

Nothing unless you change jobs. If they have a 401K roll it over to that. If they don't put it in an IRA. Let the money sit.

Answer 4

Keep it in the 401k (unless you leave the company... then "roll" it over to Schwab, Fidelity, T. Rowe price or Vanguard).........................



Learn about "asset allocation". Create an "asset allocation". Divide your funds up by your "asset allocation".

Answer 5

Invest wisely in forex, you will reap benefit progressively.

Answer 6

leave it and watch it grow - work at SBUX for beer money

Answer 7

Keep it in there...do not take it out.