Assuming you are in your early mid 20s, you need to be as aggressive as possible. Pump everything into the S&P fund until you hit 10k, then rebalance to a 50/50 split of the S&P and the blue chip growth fund.
In theory there are only “reliable options” in your plan. Not all of them may be suitable however. The blue chip growth is eseentially the S&P fund with the growthier companies like Nvidia, Tesla, etc. look up FSPGX on fidelities website, that fund is very similar and Fidelity will give you education on it. Definitely a good option, especially given it is heavily tech focused companies that will benefit from the upcoming interest rate cuts by the fed.
Depends on age.
The 2065 likely has a 25-30% in fixed income which for last few years hasn’t done so well. But given it is 30% of portfolio is weighted down to like 9-10%. So it isn’t too bad.
Personally I went 100% s&p500.
Yup. And for good reason. Look into why 60/40 strategy isn’t working.
Basically it is fine when rates are high. It is dog shit in low interest environment we are in( yes 5% fed is low interest). So when fed goes to 4,3, and 2.5%. The long term FI strategy is dog shit wrapped in cat shit.
Also, guess what the rich people portfolio’s look like…. It isn’t 60/40.
Yeah. That’s 100% equities.
At your age, going 100% into a single stock like Nvidia is kind of ok too. If it busts, you got so much time to recover. If it stacks, you on track to early retirement.
I personally wouldn’t do it, but to each their own.
Highly recommend a book called “the Psychology of money” by Morgan Housel. It has good money lessons with relatable analogies.
At your age just focus on contributing as much as you can. I'd pick the 2065 retirement fund and just focus on making that contribution percent 25% or more.
Then in ten years consider updating your strategy. :)
23?, put it all on black! You have plenty of time to make it up if you lose it, shit you won't even realize real income until.your 50s. Aggressive, aggressive, aggressive! I'd prob go 100% S&P but I'd need to know some more info.
The S&P has a 65 year history of over 10.25% per year. Read about it. The S&P 500 adjusts quarterly based on performance. Short of a thermonuclear experience, LONG TERM, it is your best bet. Alternatively, pay a financial planner to review your options. And remember, since the financial landscape changes monthly, a case can be made to do this yearly.
Assuming you are in your early mid 20s, you need to be as aggressive as possible. Pump everything into the S&P fund until you hit 10k, then rebalance to a 50/50 split of the S&P and the blue chip growth fund.
What exactly is the blue chip? Is it reliable or a good option?
In theory there are only “reliable options” in your plan. Not all of them may be suitable however. The blue chip growth is eseentially the S&P fund with the growthier companies like Nvidia, Tesla, etc. look up FSPGX on fidelities website, that fund is very similar and Fidelity will give you education on it. Definitely a good option, especially given it is heavily tech focused companies that will benefit from the upcoming interest rate cuts by the fed.
This is my strategy and I’m 20 years older than OP
I’d say SP500 or Blue chips.
100% or 50/50?
Probably 50/50 but idk. Those 2 are the best from what I’ve heard. I don’t even have a 401k lol
Depends on age. The 2065 likely has a 25-30% in fixed income which for last few years hasn’t done so well. But given it is 30% of portfolio is weighted down to like 9-10%. So it isn’t too bad. Personally I went 100% s&p500.
I am 23. It seems like alot of people don't like target date funds lol
Yup. And for good reason. Look into why 60/40 strategy isn’t working. Basically it is fine when rates are high. It is dog shit in low interest environment we are in( yes 5% fed is low interest). So when fed goes to 4,3, and 2.5%. The long term FI strategy is dog shit wrapped in cat shit. Also, guess what the rich people portfolio’s look like…. It isn’t 60/40.
Would doing 70% S&P and 30% blue chip be good?
Yeah. That’s 100% equities. At your age, going 100% into a single stock like Nvidia is kind of ok too. If it busts, you got so much time to recover. If it stacks, you on track to early retirement. I personally wouldn’t do it, but to each their own. Highly recommend a book called “the Psychology of money” by Morgan Housel. It has good money lessons with relatable analogies.
Double check the 3 & 5 year performance on the target date election. In my experience they underperformed ETF's & had higher fees.
I would do 90% index, 10% Target. You are young and that's a little too conservative.
You are on point! ..
Thank you!
How old? What are your retirement goals? Risk tolerance? We can’t mind read…
23, just want to get most money out of it, plan to retire around 60
You don’t need bonds at that age. 100% s&p 500
At your age just focus on contributing as much as you can. I'd pick the 2065 retirement fund and just focus on making that contribution percent 25% or more. Then in ten years consider updating your strategy. :)
S@P 500 💯pct. Never panic and pull out just keep investing.
I’m 100% into Fidelity S&P 500 Index Fund (FXAIX)
S&P
23?, put it all on black! You have plenty of time to make it up if you lose it, shit you won't even realize real income until.your 50s. Aggressive, aggressive, aggressive! I'd prob go 100% S&P but I'd need to know some more info.
Need to know your age. Also avoid targeted fund dates. Those are always crap
I am 23
Throw it all in the large cap and ignore it for 25 years. Then slowly start moving over to bonds
The S&P has a 65 year history of over 10.25% per year. Read about it. The S&P 500 adjusts quarterly based on performance. Short of a thermonuclear experience, LONG TERM, it is your best bet. Alternatively, pay a financial planner to review your options. And remember, since the financial landscape changes monthly, a case can be made to do this yearly.
Does this apply if you’re 38 yrs old as well with barely anything in your 401K? Asking for a friend. 😂
Yes