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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.

You can open an IRA or a regular brokerage account at Fidelity and you will find that you have tons of choices.

(The options in a 401K are generally much fewer, depending on your company's deal with Fidelity. When you opn an account directly with Fidelity, it's a completely different experience)

If you are starting out, you should start with Fidelity's S&P500 index fund and then do some studying before branching out to other funds or individual stocks. And if you never get around to branching out, you will still do well.

Fidelity is a great place to put your money for funds or stocks. This does not mean that all Fidelity funds are good (though many are), but it is a good, low-cost brokerage.

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.
They should offer the fidelity retirement funds like 2045 and 2050 that are based on your retirement age.

Chances are you cannot change your investment - Many companies have agreements with investment companies and perhaps your employer has the same through Fidelity.

Check your HR Department and find out if you can get a 'self directed' 401(k) - if not you're sort of stuck!

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.

Since, the market is under BEAR grip, even good stock quotes with lower valuation - it is the time for enter into Stock market.

When market is moving towards boom, investors like us to move out (in spite of temptation) and go for fixed rate of return mostly secured CD, etc.,

Please be advised that investment in stock market is risky - be careful. Now you can invest because of recession and bearish phase.

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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