Vanguard Investing and 401K is only for retirement?

Front Investing and 401K is only for retirement?Hope you can help?I just got a job and this new company offers 401K thru Front, is 401K only accesible when retirement comes (age 65) ? where should I invest my money with them since they let you choose what stocks to invest in? Finally, if I have $ 200.00 free every month, where can I invest it for only 5-10 years for a high return? Thanks to all again!

Answer by dundalk1
The 401(k) is only availble to you after you reach age 59 1/2. If want to pull the money sooner, you?ll get hit with taxes and a 10% penalty.

To invest, why not open a mutual fund with Front and invest your $ 200 each month through an automatic investment. You can choose the Total Stock Market Fund or the S&P 500 Fund. If you stick to it, you?ll be amazed how much you have saved after a few years.

Answer by bdfaulkner
I have to agree with dundalk1. Right now I have added Vanguards World Emerging Margets EFT TICKER: VWO to my portfolio because the world economy is growing tremindously, especially in China where they have the margin of their money in this EFT. You are probably going to see better returns there or in another EFT threw automatic investments.

I use ShareBuilder for automatic investing and place $ 450 dollars monthly divided into 5 stocks and 1 EFT. $ 200 is a excellent amount to dish out to a Front EFT by setting up an automatic investment plot threw ShareBuilder.

Answer by Susan C
If your company is offering to contribute or match what you invest, invest the max in your 401K. You can borrow against your 401K, but don?t advise it. If you have an extra $ 200 a month to invest look for safety. You need safe money for retirement too. Make it reachable so that if you have an emergency, you can get to it vs. your 401K. Front typically does very well. My clients that have their retirement invested there are pretty set after years of investing. If you leave your employement, you can and should roll it over to a new account without any tax disadvantages. Place the $ 200 in savings until it reaches a certain amount, and then place it in a high appeal CD.

I need to find a new company for my 401k?My company recently had mass layoffs and I was one of the folks to be let go. I now need to choose what to do with my Front 401k account; if I leave the money with Front they will charge me $ 60/yr. Do all companies charge some kind of fee or is it usually free? Is it better to stay place, find a new 401k company or roll the funds over to an IRA? I?m only 25 so I don?t really know much about retirement accounts yet, any info would be appreciated.

Answer by Austins Boston
Fedelity investments is definatly the way to go. Through this recession i have lost nearly nothing through them

Answer by v b
Front is a excellent company.
My IRAs tend to either hide the fees or charge $ 50-$ 100.

Answer by Cpataxweb.com
It depends how much you have in 401K. I would roll it over to IRA and buy the same funds that you had. Some brokers offer a reward for opening a new IRA with the,

What should I do for my 401k?Alright, so I know I should start saving for retirement as soon as doable. I?ve been reading about a lot of retirement online, but I?m still confused. It?s nothing I?ve been taking TOO seriously, but today at work I had a meeting about the fact I know meet the qualifications for my company?s 401k. Now, I?m only 18 so I know nothing about retirement, or stocks, or anything of the nature. The only information I got was I could distribute my funds in stocks, bonds, and trusts. Also, my company will match the first 2.5% of my salary that I place in, so I was told in order to get the most ?free money? I should place in at least 2.5%. Now, I was thinking of doing about 10% (after my company match would end up being like 12.5%), but in terms of the stocks, bonds, etc, I am really confused. Now, based on all the information I got in this meeting, the more risky, the larger your pay out could be. So?after all my options I though of going for the front 500. I guess the front 500 is a mid risk mid reward level that distributes your money into largely known stocks, such at AT&T, Exxon, google, etc. Not only do I want to know if this is a excellent thought, I also wanna know more details about my other options, and reasons behind what you reckon is best. Please, don?t tell me to place all in one group without telling me why. I want as much knowledge on this as doable as we are discussing my future hear. Your help is greatly appreciated.

Answer by Will
The fact that you?re already thinking about this at 18 is a fantastic start. Because you?re so young, you can afford to place your money in more risky investments, because you have more time to get your money back. In the long run, the more risk, the more reward.

The Front 500 Index is a fantastic place to start. It allows you to own bits and pieces of some fantastic stocks without having to reckon too much about it. Without knowing your other investment options, I can?t make a point recommendation, but you can?t go incorrect with the Front fund. At age 18, I don?t urge that you start trading stocks unless you have a lot of time to learn all the nuances of stock trading. Stick with a huge mutual fund like the one you mentioned, keep your contributions regular, and you?ll be very pleased with how quick it accumulates.

The last thing I reckon you should consider is a Roth IRA. In fact, I would probably place 2.5% in your company?s 401k since you get a match ? but after that, I would place the rest of your retirement savings into a Roth IRA. They are very simple to open (I have mine with T. Rowe Price), and very simple to set up automatic drafts so the money comes from your account every month. The main variation is that with a 401k you don?t pay taxes now, but pay them when you withdraw the money. With a Roth IRA, you pay the taxes now, but can withdraw the money tax-free when you reach retirement. The benefit is that your tax rate is likely much lower now than it will be in retirement, so in the long run you?ll do much better with a Roth.

Bottom line: Invest 2.5% into your company?s 401k to get the match ? then place the rest into a Roth IRA. Hope this helps!

Answer by shygrl33
Start while you are young. I had the option when I was in my early 20s and spent my money on stupid stuff. I don?t know a lot about stocks, bonds, etc. I would urge talking to someone at your bank. I went and talked to a financial guy at my bank and I buy mutual funds. He clarified what risk group I could be in, international stock, etc. To me it is very hard, but I know it is vital to save. I do also place money into an IRA account as well. If your employer contributes/matches a certain amount then you should do it. We had a speaker at work and it referred to Dave Ramsey. He is some sort of financial guy. Maybe you could look him up online.

I did a lot of reading online and found that the financial guy at my bank was very helpful. I wasn?t charged for my visit. Not sure if all banks do it that way or not. I meet with the guy once a year to see what I?ve made, review things and make changes. He clarified the different kinds of stock, bonds, 401k plans, mutual funds, etc. Excellent luck. Have money for your 401k taken out as soon as you qualify and it?s money you probably wouldn?t really miss. Excellent to know that you are already thinking of this at 18. Wish I has started much younger than I did.

Answer by Mike
Excellent for you thinking about your future.
For starters you should place the 2.5% that your company will match.
At my company they have a retirement fund that is managed by Merrill Lynch, our 401k administrator.
What the retirement fund is , you place the date of your potential retirement date 2057 and then the managers that handle the fund go different stocks, bonds, mutual funds and cash around, more aggressive right now and come conservative as you near retirement.
Hope this helps a small bit.

Why have a financial adviser?I manage my own personal finances.

My SEP IRA, regular IRA, and now 401K are all in either Front or American fund target retirement funds.

Rest are in CD?s (one right now that?s earning nearly 6% appeal), ?safe? mutual funds that I money cost average, and tax free money market.

Since this economic down-turn, I have taken about 20% loss. My net worth is down to about a million. I am 51 years ancient.

Some of my friends who have financial adviser/managers have taken huge losses in the 50% range on top of what they pay these idiots!

So why have a financial adviser?

Answer by coldrain
You have to look things from a long term view. One year or two years? performance does not mean too much. These financial advisers probably made huge returns in the past years. Of course, if you know what you are doing, you do not need one. Personally, I do my own investment. If it?s a mistake, I want to it to be my mistake. I am not paying for someone else?s mistake.

Answer by doreen k
I guess it all depends on what one considers to be a financial adviser and how skilled the shareholder is.

In your case, you are sophisticated in the areas of finance and investing and you don?t seem to need a financial adviser.

For others, who may not know the variation between a money market deposit account and a money market mutual fund or the variation between a managed and an index fund, some sort of adviser would seem necessary.

In my view, most of the so-called financial advisers who work for the brokerage companies are not certified to be advisers. They are trained to be salespersons and their income is fee-based.

A better choice for financial adviser would be a fee-paid professional who is trained in finance, investing, estate and tax issues. Even then, the ones who really know what they?re doing are few and far between. Consequently, no shareholder should become involved in any type of investment that they don?t painstakingly know. This means that the onus remains on the shareholder, regardless of what advice s/he seeks or receives, to make wise investment decisions.

You seem to have done quite well for yourself. I?m pleased to say that, lately, so have I (I?m also 51 and don?t reckon I have lost even 20% in this downturn ? I had all but 10% of my investments in cash; the remainder was in Front?s Star Fund). But these were lessons hard-learned and I would have a lot more to show for my investing had I learned these lessons at an earlier age!

Congrats!

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