chris asked in Business & FinanceInvesting · 7 years ago

Im 30, have 100K in my 401K, and a low tolerance for risk. what should i invest in?

just looking for steady gains averaging 5-7% over the long haul. I don't want to invest in the aggressive/risky mutual funds. I don't know too much about investing and there are so many funds to choose from. most of them are vanguard funds. Any advice is much appreciated.

7 Answers

  • 7 years ago
    Favorite Answer

    Without knowing more of your personal information, and current financial status and other data such as risk tolerance, martial status, demographics current income & expenses it would be very inappropriate for me or any other responsible person, especially a professional from the investment industry, to provide specific investment information in this type of media. At the same time it would not be prudent of you to accept any specific investment advice from those you personally know nothing about other than a responder here at Yahoo Answers.

    Those responders here on YA. that did provide specific investing ideas based on the Information you have provided demonstrate a lack any real investment experience and have also proven that they do not know how to communicate properly with new investors and for those that claim they have professional titles and/or licenses one would question their integrity and professionalism.

    Since you know little about investing, it would be in your best interest to speak with professionals either at Vanguard, Fidelity or T.Rowe Price. Call one of these companies (actually you should call all of them) a get a "fee" as to how they treat you. Just be careful with some of the responses you receive from unknowns here on Y.A.

    Regardless, good luck, just please be careful

    Source(s): from the street
  • 7 years ago

    Vanguard Equity Income Fund is a great conservative fund that's good for the "long haul". It's particularly good for investors over age 60, where capital preservation becomes more important. I mention this only to somewhat answer your question....... after all taking a strangers advice is actually worse than being conservative at age 30.

    In investing, ignorance can be very expensive..... and down right dangerous. At 30 years of age you should be moderately aggressive with your retirement money. If you educate yourself on the basics of investing and in particular Stock Mutual Funds at age 40... you will realize how much money you lost by being too conservative (the past 10 years) with 35-65 years more to go in growing your portfolio. Or... you can read 3-4 books now and make sure that the biggest destroyer of your future is not you!

    Source(s): 50% in bonds is just plain ignorant for two reasons; A. Bonds will get killed in the next few years. B. Under age 55 you should have no bonds.
  • 7 years ago

    If you have the option of investing in Target Date funds, invest in the 2050 Target Date fund (the fund closest to your retirement date when you are 65). Target Date funds are professionally managed funds designed to reduce risk (generally by reallocating your money among asset classes) and increase income as the calendar approaches the retirement year. Since you are risk averse and not extremely knowledgeable about investing, this is an excellent approach to retirement saving.

    Source(s): I work for a company that provides 401(k) plan management and independent fiduciary services for a low, flat-rate fee. (You don't pay more - to us, to brokers, or to service providers - simply because your contributions/assets have increased.) Our model is designed to provide better, positive retirement outcomes for future retirees. Currently, most 401(k)s have ridiculous, often hidden, fee structures. Watch your fees! They add up over time and can significantly impact your returns/savings.
  • 7 years ago

    I would begin with an asset allocation model.

    Based on your wants and risk tolerance from your comments, I would diversify your 100K into a steady, short term value approach.

    Try putting, 50% of it in Fixed Income (Bonds). 30% in just regular cash (i.e. money market fund). 15% in Large Cap, in your case, the Dow Jones. Finally 5% in International growth (large cap).

    If it's a 401k however, or if you're a novice, I would recommend a target fund for your 401k.

    Again, based on my recommendations from your comments, I would try a Target Fund aiming for 2020.


    Cuz you don't really have too much control over a 401k, but to choose their offered funds, index ETFs, or company stock.

    Anyways, a Target fund 2020 would be the most cost effective way of diversifying given your wants, in a 401k, if you don't directly diversify yourself.

  • How do you think about the answers? You can sign in to vote the answer.
  • 7 years ago

    if you consider investing in gold i would recommend in gold mining

    Source(s): my experience in gold mining
  • ***Gold***, Buy it fast. soon 401k's will be seized by the government

  • 7 years ago

    government bonds

Still have questions? Get your answers by asking now.