Choosing a 401K in this economy


Joined
Jun 28, 2012
Messages
1
Reaction score
0
Hi all,

I'm 32, single, no kids, and just starting a career that pays $41,600/yr. The advise I'm getting from family/friends is to invest only in something with a fixed return, like bonds, in this economy, and move into mutual funds when things start to get better.

I'm not sure this is great advice, since this seems like the perfect time to "buy low" and later, "sell high." If I buy into mutual funds now, would I not get more stocks/funds for my money than I would if I were to wait?

My employer matches at 1.75%, and I can allocated/diversify between the below options:

Growth:
American Funds Growth Fund of America R-4
American Funds New Perspective R-4

Growth-and-income:
American Funds Investment Company of America R-4
American Funds Washington Mutual R-4

Equity-Income/Balanced
American Funds Income fund of America R-4

Bond:
American Funds Bond Fund of America R-4

Cash-Equivalent
American Funds Money Market Fund R-4


How would you suggest (by %) I distribute my 401K? Am I getting good advise?

Many Thanks!!!!!
 
Ad

Advertisements


Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top