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Old 03-30-2012, 12:32 PM #1
slateman
 
 
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401k time

Got a new job. They offer a 401k through Vanguard.

I make low 50s for salary. I don't own a home, but the wife and I are looking to buy one within a year.

Should I get the Roth 401k or the traditional?
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Old 03-30-2012, 01:55 PM #2
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I'm assuming you are still young.

Fund the 401K up to the company match (if they match the first 3%) since it's free money.

Then your 8 month emergency fund (like Suzy Orman says).

Then your downpayment.

Then increase your emergency fund to cover the costs of the new house (plus all the stuff you will fill it with).

http://www.smartmoney.com/retirement..._optRetirement

http://www.suzeorman.com/

Watch the show: Til Debt Do Us Part on CNBC

How to buy a home:
http://www.slice.ca/Advice/SliceBlog...2&postID=14988

Try not to borrow money or carry a balance to furnish the place.
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Old 03-30-2012, 04:38 PM #3
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Quote:
Originally Posted by SeeK View Post
I'm assuming you are still young.

Fund the 401K up to the company match (if they match the first 3%) since it's free money.

Then your 8 month emergency fund (like Suzy Orman says).

Then your downpayment.

Then increase your emergency fund to cover the costs of the new house (plus all the stuff you will fill it with).

http://www.smartmoney.com/retirement..._optRetirement

http://www.suzeorman.com/

Watch the show: Til Debt Do Us Part on CNBC

How to buy a home:
http://www.slice.ca/Advice/SliceBlog...2&postID=14988

Try not to borrow money or carry a balance to furnish the place.
I turn 30 this year
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Old 04-10-2012, 10:53 AM #4
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I went traditional. Same boat as you, except I started 6 months ago and just turned 29. I get matched at 5%.

PTTRX - 4.84%
PTLDX - 4.8%
CRARX - 20.20%
ACINX - 10.07%
LZEMX - 10.10%
FUSEX - 40.53%
Money Market Savings Account - 9.46%

On track to an easy million by retirement.
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Last edited by barrel roll : 04-10-2012 at 10:58 AM.
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Old 04-11-2012, 09:34 AM #5
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Thanks guys

I'm turning 30 this year so it looks like the traditional may be best for me now. Get as much money as I can in there.
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Old 04-27-2012, 10:59 AM #6
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Quote:
Originally Posted by barrel roll View Post
I went traditional. Same boat as you, except I started 6 months ago and just turned 29. I get matched at 5%.

PTTRX - 4.84%
PTLDX - 4.8%
CRARX - 20.20%
ACINX - 10.07%
LZEMX - 10.10%
FUSEX - 40.53%
Money Market Savings Account - 9.46%

On track to an easy million by retirement.
Dumb question, I guess, but where did you get those?

I use Vanguard and when I called, they'd never heard of any of them. All of the ones on their website start with V
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Old 04-27-2012, 05:14 PM #7
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Those are the symbols for the mutual funds he's invested in. There are thousands of different funds all managed by different companies with different investment strategies.

PTTRX - PIMCO Total Return (Intermediate-Term Bond)
PTLDX - PIMCO Low Duration (Short-Term Bond)
CRARX - ING Real Estate (Real Estate/MBS)
ACINX - Columbia Acorn International (Foreign Small/Mid Growth)
LZEMX - Lazard Emerging Markets Equity (Diversified Emerging Markets)
FUSEX - Fidelity Spartan 500 Index (Large Blend Stocks/Bonds)

Being as your company has their 401k with Vanguard the only mutual funds probably available to you are ones which Vanguard is the management company for. As you'll see from the names none of those funds is a Vanguard fund.

You can most likely find funds to mirror his allocations in the funds offered by Vanguard. Just know that not everyone has the same risk tolerances so you should really consult a financial adviser to find out your risk averseness.
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Old 04-27-2012, 05:57 PM #8
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This is what they suggested for me after my online questionnaire

Vanguard 500 Index Fund Inv (VFINX) - 40%
Vanguard Total Bond Mkt Index Inv (VBMFX) - 30%
Vanguard International Growth Inv (VWIGX) - 15%
Vanguard Mid-Cap Index Fund Inv (VIMSX) - 10%
Vanguard Small-Cap Value Index (VISVX) - 5%
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Old 05-21-2012, 04:38 PM #9
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Quote:
Originally Posted by FiresofSirius View Post
You can most likely find funds to mirror his allocations in the funds offered by Vanguard. Just know that not everyone has the same risk tolerances so you should really consult a financial adviser to find out your risk averseness.
Its a Vanguard 401k, so there is likely no advisor and no real help. Just an 800 number to someone that doesn't really care about you.

As the previous man mentioned just participant enough to get your match. And then save up for your house. Remember you make 50k, which is a reasonable start and pay but by no means are you rich. After tax, 401k and health benefits you won't have many pennies to go around.
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