Finance guru's get in here..

[venom279]

Guys,

This has probably been covered, but nothing is coming up with my searches. I have a very good benefit package with my job and the company matches my 401K up to 6%, which I am taking full advantage of.

I am not very savy when it comes to 401K,s, the stock market, and that sort of thing, but I want to be more aware so I can get the most out of my money. I need some suggestions on which financial/investment companies are the best to go with. I want to talk to people who know what they are talking about and lead me in the right direction..

Or if any of you are investors or have some good knowledge on this subject, I would very much appreciate the advise.

Thanks..
:beer:

 

[cobrkilrl]

the company you work for should have a financial advisor or group that handles your 401K plan. they should be able to help you and in most cases it's free for employees. the hospital i work for has the same as you and their own advisor's to help you plan for your retirement.

 

[Silver03]

Right, your company should have someone that manages your 401k and typically you can only invest in your own company's stock and a few others that are picked by your company and 401k manager. All you have to do from that point is designate which funds you want your contributions directed to.

Right now, invest in international funds and any fixed income funds they have available. The market is so volatile right now you can lose huge chunks of cash if you get into the wrong small cap or large cap fund right now. Get a prospectus from each of the funds that are offered and you'll see what I mean.

 

[venom279]

You guys are correct. They use Wells Fargo.

When I called them to change from 3% which is what they automatically set it at when you are first elligible to 6% which is the max, they asked me if I wanted it to be in the standard (what ever fund it normally goes in) or if I wanted it in a Roth IRA. I told them I didn't know and they told me that it would be a good idea to get some advise from a financial advisor..

 

[Silver03]

Good info here: http://en.wikipedia.org/wiki/401(k)_IRA_matrix

 

[Matts00GT]

I believe my mother uses JP Morgan and Vanguard. I use Scottrade.

 

[mixedbreed02gt]

id get rid of the 401K and do the Roth Ira...better results, more money.

 

[venom279]

id get rid of the 401K and do the Roth Ira...better results, more money.

Could you elaborate a little more on why?

 

[venom279]

I believe my mother uses JP Morgan and Vanguard. I use Scottrade.

Thank you..

 

[mixedbreed02gt]

Could you elaborate a little more on why?

well from what I understand and I could be wrong...if your company goes belly up, you're screwed, because your 401K is based off a portion of their stocks and the money isn't guranteed.

with a Roth IRA you can contribute, I think it's $4,000 or $4,500 a year maximum...you can't touch it till a certain age without penalty and you can defer all of the taxes on the interest until you start receiving payments after you retire. if you take out the money early for any other use, then the financial penalties will be so stiff, you won't want to take it out.

i believe the only way you can use Roth IRA is if the money goes to a home purchase or college tuition, but I'm not a banker so be sure to clarify with a representative from your bank, who can give you accurate information...I'm going off what I can remember off the top of my head.

unless the bank goes belly up, you don't have to worry about your IRA not being there.

 

[ALsyr44]

As far as ROTH IRAs -

For 2008 you can contribute $5000 if under the age of 50. If over 50 you can do a $1000 catchup for a total of $6000.

You can always take the contributions (the money you actually invest) out tax and penalty free regardless of your age and how long the money has been invested.

There is a 10% early withdrawl penanlty on the earnings if you are under the age of 59 1/2 unless you meet a 72T exception. This will taxed at whatever your tax bracket is.

ROTH IRAs do not have required minum distributions like traditional IRAs. Meaning when you turn 70 1/2 you dont have to start taking your money out.

Of course you should plan on keeping the money in no matter what.

 

[mixedbreed02gt]

As far as ROTH IRAs -

For 2008 you can contribute $5000 if under the age of 50. If over 50 you can do a $1000 catchup for a total of $6000.

You can always take the contributions (the money you actually invest) out tax and penalty free regardless of your age and how long the money has been invested.

There is a 10% early withdrawl penanlty on the earnings if you are under the age of 59 1/2 unless you meet a 72T exception. This will taxed at whatever your tax bracket is.

ROTH IRAs do not have required minum distributions like traditional IRAs. Meaning when you turn 70 1/2 you dont have to start taking your money out.

Of course you should plan on keeping the money in no matter what.

i knew i was pretty close in the neighborhood, thanks for clearing that up! just going off what I knew from memory.

 

[simple treason]

id get rid of the 401K and do the Roth Ira...better results, more money.

Whoa. Don't choose between the two. Big mistake here. Its better to have both working for you than choosing one or the other.

Contribute to your company sponsered 401K because most importantly THEY MATCH your contribution. Read-"FREE MONEY".

Not sure how old you are but there will more than likely come a time when you contribute enough to max out the 401K ($15.5K) and a Roth IRA ($5K).

Find a financial advisor to help you make solid choices in your investments.

For the moment though, contribute your 6% to the 401K and save up $2,500 to start a Roth IRA.

 

[venom279]

Thanks for the info guys..

:beer: