Hello everyone!
I graduated college last summer and began work this fall. My current goals are to save approximately 20% of my gross salary for retirement, which currently ~ $10,000/yr. I've opened a Roth IRA with eTrade and begun participating in my company's 401k program. My current plan is to max out my Roth then contribute 5% to my 401k because my company matches 100% of 5% in company stock with a five year vesting program.
Would it be to my advantage to place the remainder of the money I plan to save each year into my 401k, as pre-tax money, or into a regular mutual fund program where it would be more liquid? The other issue I have with my 401k is the limited investment options. A few options of each category of mutual funds and bonds are offered but no index fund options exist. I currently have an asset allocation of the following in my 401k:
50% - Large Cap
20% - International
20% - Mid Cap
10% - Small Cap
Because of the limited avaliablity of funds in my 401k account, the decision was relatively easy, but for my Roth IRA and other mutual fund accounts the decision is much harder. I know that I want to have a program based around low-cost no-load index funds that uses a buy and hold strategy with semi-aggressive investments. My time horizon is in the area of 30 years. What I don't know much about is what asset allocation would be good for me and what some quality funds are.
I understand most people do not like to divulge specific investment information, but if anyone has any suggestions I would greatly appreciate it.
I graduated college last summer and began work this fall. My current goals are to save approximately 20% of my gross salary for retirement, which currently ~ $10,000/yr. I've opened a Roth IRA with eTrade and begun participating in my company's 401k program. My current plan is to max out my Roth then contribute 5% to my 401k because my company matches 100% of 5% in company stock with a five year vesting program.
Would it be to my advantage to place the remainder of the money I plan to save each year into my 401k, as pre-tax money, or into a regular mutual fund program where it would be more liquid? The other issue I have with my 401k is the limited investment options. A few options of each category of mutual funds and bonds are offered but no index fund options exist. I currently have an asset allocation of the following in my 401k:
50% - Large Cap
20% - International
20% - Mid Cap
10% - Small Cap
Because of the limited avaliablity of funds in my 401k account, the decision was relatively easy, but for my Roth IRA and other mutual fund accounts the decision is much harder. I know that I want to have a program based around low-cost no-load index funds that uses a buy and hold strategy with semi-aggressive investments. My time horizon is in the area of 30 years. What I don't know much about is what asset allocation would be good for me and what some quality funds are.
I understand most people do not like to divulge specific investment information, but if anyone has any suggestions I would greatly appreciate it.