I'm a young 401K investor, What do I do and what should I expect?

I'm in my 20's and I'm investing in 401K, I would like to retire between the ages of 55 & 65. I currently make around 42k and I'm investing 6% as of now because it's the maximum my company will match. I'm not really a follower of the stocks and bonds but I do know to invest aggresively while I'm young. Just wondering how long should I invest aggresive and what are the basic do's and don't that I need to know (what should I watch out for). Also what is a good figure that I can expect to be my annual rate of return throughout my life when calculating on a 401K calculator?
Thanks Ben

Look at the current returns that each of the available funds are producing, then check back periodically for changes. Put your money in the 3 that make the most money right now. That simple strategy will give you safety and maximize your long-term results. When one starts to stink and another shines, then (if permitted, check on how often you can make the changes and then every 3-6 months check again to see if you can or should change your allocation) stop contributing to the poor one and go with another with higher returns that you aren't already in.

Some folks do this kind of thing with Certificates of Deposit. They build a "ladder" with some in a near-term CD (1-3 months), mid-term (6-9 months), and long-term (1-2 years). Then when one matures, they see where the best rates are and roll it over to that length of time, but if there is more than a third of their money on that rung of the ladder, then they put some at the best place for the rung that is less populated. It is a strategy of balance, but still emphasizing the best of what is available.

Patience, you'll do fine.

Invest in what they call "growth" funds. They will be the most aggressive, with the higher potential returns, but also with the highest risk of devaluation.

As you get older and nearer to retirement, you can then begin diversifying your portfolio into "income" funds, which offer lower rates of return, but much higher security.

Look for some "emerging market" funds, I bet Goldman has many funds to offer.

To be truthfully honest, if you are serious about retiring at age 55, then 401K investing is not gonna get you enough cash for you to retire at age 55, even at the rate you are going; at least you'll have some change to last for a few years.

401K was originally designed for high income earners, I'm talking 6 figure income earners. An act of congress created 401K plans because a lot of corps and the government realized that in future, there was never going to be enough money from Social Security for people to retire.

This is because people started living longer and the population started increasing. By the way, I think I read somewhere that Social Security has a debt of about 60 billion dollars. This is going to be aggravated by the fact that within the next 3 years the firt set of baby boomers are going to retire at age 62, expecting Social Security Income payments. The estimated number of baby boomers expected to retire within the next 3 years is 70 million. So, imagine the gravity of this....

Back to my point, echnically, in order for a 401K plan to be effective in accumulating savings for retirement, you must earn at least 100,000.

Earning 6 figures plus and contributing the max. like you do--with company matching, is the only way a 401K plan could succeed in earning you enough savings to retire with a typical lifestyle that is comfortable. There are better investments that return higher percentages than 401K. 401Ks are an efficient form of saving and not an excellent investment vehicle because you have no control of what happens to your money when there is a bearish market. Anyway, you are young, I'd recommend that you educate yourself on better investment vehicles, start by going to an investors exposition or seminar and network with professional investors.

I used the time/value of money calculator listed below to figure your investment's worth at the age of 60 and assumed you are 25 (35 year time span). I took the 6% that you are putting in and the 6% matching for a total of $5040.00/year. Assuming 12% interest a year, your investment will be worth 2,436,654.11 when you reach 60.

It sounds like a lot, but it won't be much money in 35 years. I would suggest that you invest 10% of your income, and use the 6% matching. That will give you 3,442,257.39 during the same time period, using the same assumptions.

Do some reading, don't mess with your investments much, and let time do its thing.

I totally agree in being more agressive in our younger days. Anyway it is smart to invest about 60% of your funds in low risk investments and 40% in high risk investments. That is what I have done my self as an professional fulltime investor. My 40% is doing very well in an offshore hedgefund called Orion Trading Institutions, their website is www.oriontrading.org
Orion have also a portofolio calculator to "play with".