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I have a 401K at work through Fidelity Investments, should I invest elsewhere? |
I deposit 6% of my check every paycheck to my 401k and the company I work for matches it dollar for dollar. The trouble is, I don't have a lot of options to choose from in terms of where I want the money invested. I can choose an agressive, moderate, or conservative risk and they go to the places that Fidelity sees fit. My question is, should I invest in stocks elsewhere on top of my 401k? I'm 25 years old by the way. Yes, and it is a great thing to do. only if you feel knowledgeable enough to research and select other mutual funds. just because you have few options doesnt mean they are bad options. I used to have a 401k with them too. what funds would you invest in otherwise? if there is something better, go for it. Chances are you cannot change your investment - Many companies have agreements with investment companies and perhaps your employer has the same through Fidelity. If the company is matching your contributions, stay with it by contributing enough to get the maximum match. If you can invest more, start a Roth IRA. at the moment I can suggest you to invest in stock market - choose good stocks - presently IBM, Microsoft, etc., Presently avoid stock connected with Bank, Homes, Departmental Stores, etc., as they are likely to fall further. Yes you should, but you should spend some time educating yourself first. If you want to save more money for retirement, then you should open a Roth IRA (google it), if you are looking for short term investments research mutual fund, stocks and ETFs. |
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