DS starts his first real/career job in a couple of weeks. He will sign up for 401K but is very, very risk adverse (wish I was.....). Anyway, haven't seen the investment options yet, but I believe my question is general enough that the investment options do not matter too much.
He's a bright kid, but at this point, he doesn't seem to be interested in learning about investing. I expect that will come later, but right now he's just concerned with getting fully engaged with the new job.
What would you suggest for a 23 yr old who is very risk adverse for his 401K? Would it be a terrible suggestion to let him accumulate a balance in a Stable Value type fund, and then recommend he start investing into something more like a balanced fund? I am afraid if he goes into equities first thing, and the losses start to stack up, it will spook him away from the market forevermore. At least a Stable Value Fund shouldn't be moving down with the market and give him the feeling that he isn't just throwing money away.
ETA: He has asked for our opinions or I'd stay out of it!
He's a bright kid, but at this point, he doesn't seem to be interested in learning about investing. I expect that will come later, but right now he's just concerned with getting fully engaged with the new job.
What would you suggest for a 23 yr old who is very risk adverse for his 401K? Would it be a terrible suggestion to let him accumulate a balance in a Stable Value type fund, and then recommend he start investing into something more like a balanced fund? I am afraid if he goes into equities first thing, and the losses start to stack up, it will spook him away from the market forevermore. At least a Stable Value Fund shouldn't be moving down with the market and give him the feeling that he isn't just throwing money away.
ETA: He has asked for our opinions or I'd stay out of it!