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What option would be right for me?

I am 20 years old and currently work at company with a 401k plan that includes a 4% match. I would consider myself "underemployed" as I dont work in my feild of study I am licensed in. The match at my company cannnot be kept 100% unless you stay for 6 years. I dont think I am going to stay longer than 2-3 years (worst case scenario)

My point is with my bills right now and my income i have about 35% disposable income and am able to invest comfortably at somewhere between 10-20 percent base salary. (i work a lot of overtime)

what type of funds would be best for a young buck like me who wants the greatest capital growth quickly? Since I dont expect to be able to keep my employer match and will probably have to roll my fund into another retirement account eventually what would be my best course of action? I was thinking maybe the great west s&p 500 index because it has a high yet reliable rate of return. any suggestions?

Oct 11, 2016 in  |  Flag
2 Answers  |  3 Followers
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Johnny Kang Level 1

Since you have a long time horizon until you are of retirement age I would agree that an S&P 500 index fund would be a good choice. You may also want to consider getting exposure to international developed and emerging market exposure as well.

Comment   |  Flag   |  Oct 11, 2016

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You can get a much higher long term return by investing in small and value stocks. I work with a fund company Matson Money that has extremely diversified funds that take advantage of getting bigger returns from small and value, but keeping the risk low with diversification. It is perfect for the young bucks like you (and me).

2 Comments   |  Flag   |  Oct 12, 2016

I dont think I have access to those options in my company 401k

Flag |  Oct 13, 2016
James Thomas Hancock

You probably don't right now. If you want I can talk to your 401k Trustee and see if your company allows for you to self direct your 401k.

Flag |  Oct 17, 2016

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