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Anonymous asked in Business & FinanceInvesting · 8 years ago

Fidelity 401k Investment funds for 26 year old?

Hey everyone I need some information on which funds I should contribute to my 401k through fidelity. I know at my age I should be pretty aggressive with my portfolio. Any information would be greatly appreciated as I am new to investing.

I am 26 years old

No debt whatsoever. (I already paid off all my school and auto loans)

No mortgage payment yet, however looking to buy sometime within the next year.

I currently make 22k a year base salary, however with commissions it is anywhere around 37-45k. While this may not seem like alot, I live in a suburban area of Metro Detroit where the cost of living is significantly less then most of the country. More or less, when I do get a mortgage payment, it will be less then rent in alot of areas.

My company matches 25% up to the first $2400. Not much, but better than nothing I suppose.

5 Answers

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  • Anonymous
    8 years ago
    Favorite Answer

    Can you invest in any of the Fidelity Funds or are you limited to just a select few? Usually, the latter.

    The Fidelity Contra Fund is one of their best performing funds with a positive 3,5, and 10 year return. It would certainly be worth an investment in my opinion--maybe 25-35%.

    The Fidelity OTC Funds also has a very similar fine record. This is mostly a technology fund and growth fund. It probably would not be wise to put too much into this one but it IS aggressive. Maybe 10-20% depending on just how aggressive you happen to feel.

    The Select Consumer Staples will add some stability to your holdings. It has a very good 3,5,10 year return. Maybe 20% about.

    Now for a couple of international funds to add a little extra spice. Latin American Fund 5-10%, Canada Fund 5-10%.

    Put the rest in a money market fund as a safety valve in case there is another market crash.

    Those picks are pretty aggressive except for the money market and consumer staples. Don't want to go whole hog aggressive though. This is a marathon, not a sprint.

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  • 8 years ago

    First, be sure that you have a good emergency fund of at least 3 to 6 months of living expenses. Financial and job security here in Michigan is always tenuous.

    Shoot for 15% of your salary to go into your retirement. Fund your 401k to the point that you max. out your company match. Beyond that you can choose the additional to go into that 401k or perhaps into a Roth IRA.

    As to fund selection. Be AGGRESSIVE. Fidelity has a lot of funds in their various families. Since we don't know what choices you have, it is hard to make recommendations. I do know that I like the Latin American sector. At your age consider an allocation of approximately 1/4 into Domestic growth Large Cap, 1/4 into Small Cap, 1/4 into Growth & Inc. and 1/4 into International.

    Because your time horizon is so far in the future, stay away from cash and conservative investments for the next 10 years at least. Because you will be contributing on a regular basis through the 401k, you will be taking advantage of future low spots in the market. It is called Dollar Cost Averaging. During the low spots you will be buying MORE shares for the same price - essentially lowering your average cost per share. History shows us that the small cap and aggressive sectors outperform large cap over a 35 year time period. And all of the equity sectors massively outperform money market and cash type investments.

    Good luck... if you have added questions, happy to answer them.

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  • Anonymous
    6 years ago

    Hi,

    You should try with Penny Stocks Trading (you can find more info here: http://pennystocks.toptips.org )

    Penny stocks, also known as cent stocks in some countries, are common shares of small public companies that trade at low prices per share.

    I've been subscribing to this PennyStock web site for about a year now and have loved the objective advice they give. He really does look for quality stocks and I've made some pretty nice profits on a lot of his suggestions. Being still fairly new to investing I have been dabbling a lot in penny stocks to try and grow my account. I may not have a big account, but it's a lot bigger than it was a year ago. On just one of Nathan's picks this year I managed to make my investment back ten-fold! Be careful! Penny stocks are notoriously risky but if you follow the right method the risk is almost 0. I suggest to invest only little money first and then reinvest the profits. This is the site I'm using: http://pennystocks.toptips.org

    Best

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  • John B
    Lv 6
    8 years ago

    If you are starting out, start with an S&P 500 index fund. They generally have very low expenses and are very well diversified (for a stock fund). As you save more, you will want to diversify into other investments, such as bond funds and international stock funds. Don't invest in anything exotic or complicated, and pay close attention to the expenses.

    Finally, I recommend that you contribute at least as much as the company will match. You won't get a return like that anywhere else.

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  • Anonymous
    4 years ago

    Penny stocks are prone to violent fluctuation (volatility), many people believe that they'll luck out with a stock that will jump from $0.08 to $8 in two weeks. And it's happened. Learn here https://tr.im/Gfvog

    Scour enough investing message boards and you're sure to find success stories from investors who made a mint while "playing the pennies."

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