He will be nowhere near maxing out the 401k. While he has generous benefits at a low cost, he has an entry level salary. So no Roth in the near future. We are so grateful that he was able to find a good job so quickly, even before the old job closed down, that we are not looking a gift horse in the mouth. There are so many out of work here in the greater Cleveland/Akron area. I will have him read your answers to my question. Thanks!
Which would you choose
- Thread starter shoe
- Start date
FinanceDude
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Aug 3, 2006
- Messages
- 12,483
I don't think putting all your money in a Roth IRA and not participating in the 401K if the company doesn't match is such a great idea. It's the subject of a different thread.........
Urchina
Full time employment: Posting here.
Shoe,
Congrats to your son for taking care of business. That's a good thing.
Is he just starting out in investing? Because you can do a lot worse than the low-cost S&P index fund. (Most of us have done a lot worse, and some of us, like me, are only a few years ahead of your son in terms of experience).
I'd put 80% in the S&P index fund and 20% in the Dodge & Cox (which I own in my 457). The expense ratio on the Dodge & Cox isn't the greatest, and it's not an index fund, but it gives him some international exposure and that might be helpful later on.
I'd also recommend he read "The Bogleheads Guide to Investing" if he's just starting out with investments. I've spent the past two and a half years reading personal finance / investing books and it's the one I wish I'd read first -- it would have saved me a ton of trouble.
Also, your son needs to come up with an asset allocation. Vanguard has one on its website -- similar ones exist elsewhere.
Good luck to him!
Congrats to your son for taking care of business. That's a good thing.
Is he just starting out in investing? Because you can do a lot worse than the low-cost S&P index fund. (Most of us have done a lot worse, and some of us, like me, are only a few years ahead of your son in terms of experience).
I'd put 80% in the S&P index fund and 20% in the Dodge & Cox (which I own in my 457). The expense ratio on the Dodge & Cox isn't the greatest, and it's not an index fund, but it gives him some international exposure and that might be helpful later on.
I'd also recommend he read "The Bogleheads Guide to Investing" if he's just starting out with investments. I've spent the past two and a half years reading personal finance / investing books and it's the one I wish I'd read first -- it would have saved me a ton of trouble.
Also, your son needs to come up with an asset allocation. Vanguard has one on its website -- similar ones exist elsewhere.
Good luck to him!
brewer12345
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Mar 6, 2003
- Messages
- 18,085
Guess I will be the odd man out and suggest 1/3 S&P index, 1/3 D&C Intl and 1/3 some sort of fixed income option (preferably bond market index or stable value fund).
Similar threads
