| Need Help making the right choice from experts please |
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wanaifieds
First Time Poster
Cash: $ 0.25
Posts: 1
Joined: 09 Mar 2013
Location: Texas
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| Need Help making the right choice from experts please |
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Hello everyone I am looking to have some advise making the right choice on my retirement choices I started working at Target DC and I have the choice to choose a 401k plan but I don't know what to get I have the target Company Stock already and I have chosen LifePath Retirement Index but I not sure if that was the right choice.
I have uploaded a image so you can see what i see if you have any advice it would be much appreciated
It says on the choice I made
WHAT IS THE COST OF INVESTING IN THE FUND?
You pay BlackRock a management fee of 0.13 percent. You also pay your share of the TGT 401(k)
administrative expenses, which currently are approximately 0.13 percent. Both types of costs are
expressed on an annual basis and as a portion of the value of your investment in the fund.
I don't know if that's good or bad.
but if anyone has advise I would really appreciate it very much Thanks you
formatting edited
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Sat Mar 09, 2013 2:48 am |
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Anton Martin
Full Member
Cash: $ 15.00
Posts: 73
Joined: 23 Nov 2012
Location: Florida, USA
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Well wanaifieds,
I would like to recommend you to hire financial advisor for yourself as it will also help you to decide on other investment options also. Financial advisors or planners are right people who can guide in such scenarios. I also like to mention that for building good personal financial portfolio you must take expert advice as it is good for your financial health and your financial future.
I hope you understand......
Good Luck
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Sat Mar 09, 2013 11:48 am |
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oldguy
Senior Member
Cash: $ 751.85
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Joined: 21 May 2006
Location: arizona
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I'm not certain - but I think you are in the LifePath sweep fund where BR holds funds that get allocated to the various 'year' funds. Note that the 1-year return is 5.72% so it musy be mostly bonds. Meanwhile the LifePath2055 returned 11.34%. (The general US market returned about 14% for 2012).
IMO you should use either the LifePath 2055 or the SP500 Index (below it on the chart). Both of those invest in the 500 largest USA corporations, they account for about 80% of all business in the US, so they are diversified.
The 2055 fund in mostly SP500 but with a few international stocks and bonds sprinkled in. Later as you age, the fund slowly moves from stocks to bonds - at age 50 it might be 60% stocks/40% bonds, ate age 60 maybe 50/50, at age 65 maybe 40/60, and so on.
I would keep the Target stock to a minimum - a common mistake is to over-invest in the company that you work for (google Enron).
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Sat Mar 09, 2013 3:29 pm |
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kimmy burgess
New Member
Cash: $ 1.60
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Joined: 12 Mar 2013
Location: California
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It is a very important decision of your life. You should plan your retirement. I will personally recommend you to hire a financial adviser. It is very important to take this decision seriously.
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Fri Mar 15, 2013 8:51 am |
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Eric69
Member
Cash: $ 3.05
Posts: 15
Joined: 03 Feb 2013
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In my past experience EVERY financial advisor has tried to and did sell me on high expense, managed funds. Since Most don't beat the S&P long term I decided to invest in index funds
I think the OP should consult with an advisor but do a little research first. Advisors primarily make money off commissions, not the performance of your portfolio.
OldGuys advice looks pretty good....diversity is important
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Fri Mar 15, 2013 7:02 pm |
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smk
Preferred Member
Cash: $ 37.05
Posts: 183
Joined: 12 Dec 2012
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i agree that investing in your company stock violates certain principles of diversification. if you lose your job because the company goes bankrupt, you also lose your investment. if you invested in a competing company when yours goes belly up, they may benefit.
as for hiring an adviser, some give advise merely to sell you a product. they are held to a standard of selling you only suitable investments (paid on commission or fee basis). they do not need to look at your entire situation or only do what is in your best interests. other types of advisers are held to a fiduciary standard, and you would typcially pay them a fee for services as opposed to commission.
my background is in the institutional area of finance. the typical adviser who handles individuals is about 30 years behind the times in terms of understanding how finance works. they also typically do not have any training on how to integrate your financial decisions, which impact your life, with your life decisions designed to help you become happy. there are only a handful of exceptions to this last rule.
unfortunately you don't have a lot of good choices out there. so i suggest you start studying finance to educate yourself before you make any significant decisions. once you really understand how things should be handled, then you can either hire an adviser or do it yourself. in either case, you won't need to come here and ask the experts anymore...you will know...
Steve Kanney, CFA
http://www.integratedfinancialny.com/index.html
Any comments made are designed to help you make your own decisions and do not consititute investment advice.
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Sat Mar 16, 2013 8:24 pm |
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smk
Preferred Member
Cash: $ 37.05
Posts: 183
Joined: 12 Dec 2012
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am just finishing up and publishing my first ebook (free ebook). haven't been able to do anything else. formatting these things is a nightmare...
Steve Kanney, CFA
http://www.integratedfinancialny.com/index.html
Any comments made are designed to help you make your own decisions and do not consititute investment advice.
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Sun Mar 17, 2013 11:40 am |
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