My sister has been contributing to her 401k for several years now. She is only in 1 fund, the Fidelity Freedom 2040. As I take it, this fund automatically adjusts to accommodate the persons retiring in year 2040. She is 26 years old and will probably retire more than 10 years after this date.

Is this an ok fund for her to be in? Looking at the performance of the stock and associated fees, it seems in line with an index fund. Think she should diversify more or continue to contribute to this fund?

Popularity: 14% [?]

Simple question right? I am not watching the market everyday trying to time it. I’m an average young professional looking for long term growth. Currently I am investing in my tax deferred 401k at my company, my Roth IRA, Brokerage account, and MMA.

Within these accounts is there a sector which would protect what I currently have for a while? Foreign, Bonds, MMA etc. Saving my money in my MMA is almost a wash with the rate of inflation. I am getting about 4% APY, and inflation seems higher than that. My funds in my IRA, and 401k have gone down about 15-20%. Do I just sit tight and hope for a rebound? or do I move into safer funds for the time being?

Popularity: 14% [?]

My family owns a house worth about $400,000. The house will need a little work to fix up but then could be rented out for $1500-$2000 dollars a month. It’s a 3 bedroom house close to Harvard University, so I don’t think it would be a problem selling or renting the house out to students or grad students.

Here are my thoughts:

$18,000-$24,000 a year from renters.
A $400,000 home in a good market will appreciate at 3-4% - $12,000-$16,000
I was unable to find the property tax rate but I am guessing it’s about $3,000 a year.
This brings my estimate total to $27,000-$37,000 per year.

$350,000 invested at 8-10% a year gain would be $28,000 - $35,000.
$400,000 invested at 8-10% a year gain would be $32,000 - $40,000.

Given the current market situation, the real estate market, and how both markets can fluctuate, what do you think is a better long term investment? Any opinions are appreciated. Thanks.

Popularity: 13% [?]

I wanted to write up a nice post regarding my 403b funds but I currently don’t have any time since I swarmed at work.

Here’s the list of my fund options and I’m sorry I couldnt post there morningstar pages because I’m busy… Maybe Paul can post those for you guys. I would love to see some opinions on what funds I should be contributing to.

http://www.mutualofamerica.com/MOAframe.asp?Main=investments/invest_option_main.asp&ButHit=inv

Popularity: 43% [?]

Hey guys,

As the title suggests I’ll be enrolling in my companies 403b plan. I’d like to ask you guys some general questions and hopefully get everybody’s opinions on things. Below is my companies policies for our 403b plan. Just some basic information for you guys. I’ll be making another post regarding the funds.

Company Vesting by year:

Less than 3 - 0%

4 years - 20%

5 years - 40%

6 years - 60%

7 years - 100%

Company Contributions:

1-5 years - 3%

6-10 years - 4%

10 or more - 5%

Currently I am 24 years old. I have zero debt (I’ve paid off all my credit cards, etc..) and my bills right now consist of cell phone, car insurance, Internet, and groceries. The rest of my money is being contributed to my GMAC MMA account. Right now I live at home so I’m not paying rent although that might be changing in the next couple of months. So some of my general questions are:

1. What percentage/amount of my paycheck do you guys think I should contribute to my 403b with my current situation?

2. Is there a way to calculate exactly what my paycheck would come to after my 403b contribution is deducted?

3. Do you guys know of any calculators online which would be useful in a situation like this. Where it could help suggest how much I should be contributing by taking into consideration my salary/expenses.

4. How many funds should I be spreading my contributions out between? Is there an ideal number for someone my age or does it depend more on how many worthwhile funds there are to choose from?

These are my basic questions. I would love to here what you guys are currently doing when it comes to contributing to your 401k. I’ll also be making a post with an outline of the fund selection that I have. I decided to leave that to a whole new topic with the suggestion from Paul to really get the discussion going. It will be fun and veerry helpful getting everyones opinions on the funds and which ones I should be picking.

Popularity: 18% [?]

Mutual funds are not traded throughout the day. When is the best time to buy shares in a mutual fund then? If I initiate a transaction during the day, the prices of the shares in the fund are based on the end of day prices of the stocks in the fund. At least that’s my understanding of it.

Is it worth it to try and buy funds at a low price in my IRA? Or should I just buy $250 worth at the end of each month?

Can I wait until the end of the day to see how the market went, and decide to buy shares in my Mutual funds after the market is closed?

Popularity: 19% [?]