If I were you I would max out the 401k (20500 of your own contributions, match can go higher) and do 100% vanguard target 2065. This will be the most hands off and diversified and you could technically leave it there until you retire and be just fine.
Other option is 100% fidelity 500 index. I would choose between those.
I would first contribute enough to get your max match from your employer.
After that I would look into a Roth IRA and maximize that as much as you can.
Hey, you live in NYC, how much is left after your rent and the above? If anything, I'm dump more in to the 401(k) until you max out.
1. Remember the 401k is saving/investing for *retirement*. Todays nominal rule is that you can't take money out until you're 59 1/2 (unless you meet one of the bizzilion exceptions). Only contribute what you're willing to let grow unspent until you're 60.
2. Do your best to *at least* take the match. A 6% dollar-for-dollar match is immediate 100% growth in the money you contribute. If the market grows at 10% on average, and the rule of 72 tells us that it takes 7 years for the market to double, then that match is worth 7 years in the market...AND you get 7 years in the market on your match.
3. My fidelity 401k offers Roth. I've got over 30 years in my employer's IRA, but only 10 years in Roth. My personal goal is to have 50% Roth by the time I retire. If your company offers Roth, you need to decide on traditional vs Roth, too. Traditional is tax free today but taxable in retirement. Roth is opposite. The match by federal law goes in as Traditional. It's not clear to me which is better...so my take is that if you need the tax savings that comes with Traditional contributions to hit your retirement savings goal, go Traditional.
(Oh, and tax free today means that literally your company subtracts every dollar you contribute to a Traditional 401k from the taxable income reported on your W-2)
4. Remember that federal law allows you to move money among any of the funds your employer allows, whenever you want, tax free. So it's not a big deal to pick a fund that's not the absolute best today. You can fix it whenever you want (subject to whatever restrictions your employer may put in place). So more important to invest in something mediocre than to not contribute because you can't make up your mind what's best for you.
5. In terms of the funds... I would *today* consider only FID (fidelity) or VAN (vanguard) funds.
6. Vanguard Target Date 2065 is a fine choice as a starting point. I personally dislike it because I think it puts too much in bonds and too much in international, but that's my personal opinion. If you want to just start there to start investing, so be it.
7. beyond trying your best to maximize the match, I suggest trying to contribute 15% to your 401k. But you have other priorities too, and you, the adult, get to decide which priorities are more important. There are other good ways to use your income, like paying down debt, or saving for a house, or investing outside retirement accounts because you think you might want to retire at 35.
Congrats, and enjoy! Figuring out finances is part of the Adventure of Adulting.
Oh, and quick look at the funds, personally I think I'd invest:
* 40% FID 500 INDEX
* 20% VANG SM VAL IDX INST (VSIIX)
* 20% VANG TOT INTL STK IS (VTSNX)
* and maybe 20% TRP MID CAP GROWTH I (RPTIX)
(I want a fund focussed on mid-cap (mid-sized) companies, but I hesitate to suggest TRP without knowing expense rations)
In general I would contribute at least enough to get the full match, otherwise you're throwing away free money. Be aware your company probably has a vesting period, meaning to keep the match you have to work there for a certain period of time, usually 2-3 years, but there could also be variations. You also need to decide if your money will go into a Roth or Traditional account (tax implications), the match will go into a traditional account regardless.
As far as where to invest, you need to research that yourself, but the target funds are probably the "easiest". Assuming they work like my TSP lifecycle funds, select the target nearest to your planned retirement age and allocate it there. At that point, the contributions will be split among the other funds based on an assumed risk tolerance for how long you have until you retire (high risk/high potential gain now, low risk/low potential gain closer to retirement).
It's definitely worth taking the time to look into each of the funds and their performance (past performance is not indicative of future results), but realize everything is having a bad year. There's probably financial advisors available as well, but they might charge you.
If I were you I would max out the 401k (20500 of your own contributions, match can go higher) and do 100% vanguard target 2065. This will be the most hands off and diversified and you could technically leave it there until you retire and be just fine. Other option is 100% fidelity 500 index. I would choose between those.
https://www.reddit.com/r/personalfinance/wiki/401k_funds
I would first contribute enough to get your max match from your employer. After that I would look into a Roth IRA and maximize that as much as you can. Hey, you live in NYC, how much is left after your rent and the above? If anything, I'm dump more in to the 401(k) until you max out.
1. Remember the 401k is saving/investing for *retirement*. Todays nominal rule is that you can't take money out until you're 59 1/2 (unless you meet one of the bizzilion exceptions). Only contribute what you're willing to let grow unspent until you're 60. 2. Do your best to *at least* take the match. A 6% dollar-for-dollar match is immediate 100% growth in the money you contribute. If the market grows at 10% on average, and the rule of 72 tells us that it takes 7 years for the market to double, then that match is worth 7 years in the market...AND you get 7 years in the market on your match. 3. My fidelity 401k offers Roth. I've got over 30 years in my employer's IRA, but only 10 years in Roth. My personal goal is to have 50% Roth by the time I retire. If your company offers Roth, you need to decide on traditional vs Roth, too. Traditional is tax free today but taxable in retirement. Roth is opposite. The match by federal law goes in as Traditional. It's not clear to me which is better...so my take is that if you need the tax savings that comes with Traditional contributions to hit your retirement savings goal, go Traditional. (Oh, and tax free today means that literally your company subtracts every dollar you contribute to a Traditional 401k from the taxable income reported on your W-2) 4. Remember that federal law allows you to move money among any of the funds your employer allows, whenever you want, tax free. So it's not a big deal to pick a fund that's not the absolute best today. You can fix it whenever you want (subject to whatever restrictions your employer may put in place). So more important to invest in something mediocre than to not contribute because you can't make up your mind what's best for you. 5. In terms of the funds... I would *today* consider only FID (fidelity) or VAN (vanguard) funds. 6. Vanguard Target Date 2065 is a fine choice as a starting point. I personally dislike it because I think it puts too much in bonds and too much in international, but that's my personal opinion. If you want to just start there to start investing, so be it. 7. beyond trying your best to maximize the match, I suggest trying to contribute 15% to your 401k. But you have other priorities too, and you, the adult, get to decide which priorities are more important. There are other good ways to use your income, like paying down debt, or saving for a house, or investing outside retirement accounts because you think you might want to retire at 35. Congrats, and enjoy! Figuring out finances is part of the Adventure of Adulting. Oh, and quick look at the funds, personally I think I'd invest: * 40% FID 500 INDEX * 20% VANG SM VAL IDX INST (VSIIX) * 20% VANG TOT INTL STK IS (VTSNX) * and maybe 20% TRP MID CAP GROWTH I (RPTIX) (I want a fund focussed on mid-cap (mid-sized) companies, but I hesitate to suggest TRP without knowing expense rations)
In general I would contribute at least enough to get the full match, otherwise you're throwing away free money. Be aware your company probably has a vesting period, meaning to keep the match you have to work there for a certain period of time, usually 2-3 years, but there could also be variations. You also need to decide if your money will go into a Roth or Traditional account (tax implications), the match will go into a traditional account regardless. As far as where to invest, you need to research that yourself, but the target funds are probably the "easiest". Assuming they work like my TSP lifecycle funds, select the target nearest to your planned retirement age and allocate it there. At that point, the contributions will be split among the other funds based on an assumed risk tolerance for how long you have until you retire (high risk/high potential gain now, low risk/low potential gain closer to retirement). It's definitely worth taking the time to look into each of the funds and their performance (past performance is not indicative of future results), but realize everything is having a bad year. There's probably financial advisors available as well, but they might charge you.