If you have  less than 10K in your 401K, choose the aggressive one. Btw, those are not stocks but entity who buy/sell stocks and promises certain return every year. Change to less agressive upto conservative every 5 years. Just my thinking.

khairey · Jan 2, 2013 11:09 PM

Thanks Khairey. I do not have any 401 k saving and it's my first one as is my first job in US. So u thinks I should go for aggressive for 5 years and change to less every 5 yrs.

smith · Jan 3, 2013 11:38 AM

You have about 20 options (8 of them are retirement funds, of which you should be able to select only one). Check MorningStar for more details into each of them. MorningStar lists the kind of allocation each fund has and their risk and return vs other funds of similar category. If you've never done these things before then you'll be overwhelmed at first, but as time goes on, you'll start getting the hang of it. Common knowledge says invest in high-risk funds early on in your career and slowly move to conservative the closer you are to retirement. Bonds and inflation-protected funds are conservative as they are low but steady source of revenue. Stocks and investments are aggresive as they can go up and down based on any criteria. The retirement funds are moderate as they are monitored by the company providing the 401k service. It is a timeless suggestion that you contribute at least the maximum your company will match you. The match varies from company to company. This is free money if you can afford to take advantage of it. The first $17,500 pear year you contribute to 401k is tax-free. This amount varies year by year, be sure to check. If you can afford to then this is a good place to stock up some tax-free cash for your future. Please invest smartly.

sanobhai · Jan 3, 2013 5:44 PM