Retirement Planning Deferred Comp Investment advice needed

Jr32591 · 03-31-2017, 08:59 AM

Hello,

I want to thank you in advance for all willing to help me!

I am a 26 year old , who currently contributes to a pension plan at 6.25 percent of my salary. Being a member of the PA state employment I have been given the opportunity to open and contribute to a 457b deferred comp plan. Some of my older friends and family have been telling me I need to take advantage of it while I'm young.

Here is where I need some guidance as I am too stubborn to let someone else manage my accounts with no input. Below you will find the fund options available as well as the results/returns of them for the past ten years.

I have a buddy who works in the financial sector who is telling me I need to select the stock index fund.

Any other opinions?

https://sers457.gwrs.com/wrFundOverv...8978-01&db=pnp

https://docs.retirementpartner.com/i...78-01_IOAG.pdf

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seabass97166 · 03-31-2017, 09:08 AM

You are young- go very aggressive.
Get in something that can yield around 9% return.
Also, get out of your own way, listen to an expert!
Swallow that pride.

jcardstore · 03-31-2017, 09:49 AM

Quote:

Originally Posted by seabass97166

Also, get out of your own way, listen to an expert!
Swallow that pride.

100% agree with this. Let a professional financial planning expert help you.

chipmaster · 03-31-2017, 09:59 AM

I put all of my $$ into frozen orange juice futures. Duke & Duke were my advisors.

Definitely don't listen to me

bradjames12 · 03-31-2017, 01:05 PM

OP, at your age, I would be 100% in the stock index fund. You have plenty of years ahead of you to ride out any market fluctuations.

As a FYI, I am 11 years older than you and have 95% of my 401k account in a stock index fund.

As far as the "experts" are concerned, I wouldn't give them any money either.

CARDGUY123 · 03-31-2017, 01:33 PM

I am forty and my 401 is 95% stock funds. I am being as aggressive as possible. I do my own research as for the returns and try to figure out what is best for my money. This year so far I have 9% return. Of course I hope the market crashes because then I will increase what I am putting in.

GreatAlbert · 03-31-2017, 01:35 PM

I know a professional you can talk to. Send me a PM.

Jr32591 · 03-31-2017, 01:57 PM

Thank you everyone for your advice. It seems a lot of people are encouraging me to put my money in the stock fund.

snakeeater · 03-31-2017, 04:12 PM

At your age, I would agree with the stock funds. Be careful though. Make sure you look at the fees associated with the management of the funds and the make up of each fund. You may be making 8-9% on the funds but certain funds can take 1-2% for management, which leaves you losing out on money in the long run. If you are like many Americans, you don't have the time to manage your allocations regularly. To hedge your bets, make sure that the funds are diversified within themselves. Lastly, research, research, research. You have to make the time to look at your portfolio and learn the market. The more you know, the better you can invest. Hope this helps.

JMarchand1981 · 03-31-2017, 05:20 PM

Over time, nothing truly bests an index fund. Do not pay a professional. They are just going to put you into a mutual where you also pay an expense ratio. It's like paying taxes twice on the same money. Kind of a bad move if you ask me.

Professional money managers these days are just algorithm kings and most do not beat an S&P index fund.

JMarchand1981 · 03-31-2017, 05:27 PM

Quote:

Originally Posted by JMarchand1981

Over time, nothing truly bests an index fund. Do not pay a professional. They are just going to put you into a mutual where you also pay an expense ratio. It's like paying taxes twice on the same money. Kind of a bad move if you ask me.

Professional money managers these days are just algorithm kings and most do not beat an S&P index fund.

full disclosure on my part: I watch the market and make my own moves for my trading money. My retirement money is set aside in an equity-composed mutual fund (50%), an S&P index fund (20%), a dividend fund (10%) and a FANG portfolio for approximately 20%.

03-31-2017, 08:59 AM	#1
Jr32591 Member Join Date: Oct 2010 Posts: 404	Retirement Planning Deferred Comp Investment advice needed Hello, I want to thank you in advance for all willing to help me! I am a 26 year old , who currently contributes to a pension plan at 6.25 percent of my salary. Being a member of the PA state employment I have been given the opportunity to open and contribute to a 457b deferred comp plan. Some of my older friends and family have been telling me I need to take advantage of it while I'm young. Here is where I need some guidance as I am too stubborn to let someone else manage my accounts with no input. Below you will find the fund options available as well as the results/returns of them for the past ten years. I have a buddy who works in the financial sector who is telling me I need to select the stock index fund. Any other opinions? https://sers457.gwrs.com/wrFundOverv...8978-01&db=pnp https://docs.retirementpartner.com/i...78-01_IOAG.pdf Sent from my iPhone using Tapatalk Last edited by Jr32591; 03-31-2017 at 09:01 AM.

03-31-2017, 09:59 AM	#4
chipmaster Member Join Date: Nov 2007 Location: puppies n kittie cats Posts: 10,049	I put all of my $$ into frozen orange juice futures. Duke & Duke were my advisors. Definitely don't listen to me __________________ rainbows n butterflies

03-31-2017, 01:33 PM	#6
CARDGUY123 Member Join Date: Oct 2010 Location: Iowa Posts: 5,485	I am forty and my 401 is 95% stock funds. I am being as aggressive as possible. I do my own research as for the returns and try to figure out what is best for my money. This year so far I have 9% return. Of course I hope the market crashes because then I will increase what I am putting in. __________________ I DON'T BLOCK PEOPLE BECAUSE I LOVE TO WATCH PEOPLE SAY THE DUMBEST STUFF! WINDOW LICKERS UNITE!!! ASK ME HOW!

03-31-2017, 01:35 PM	#7
GreatAlbert Member Join Date: Nov 2012 Posts: 5,452 greatalbert2013	I know a professional you can talk to. Send me a PM. __________________ IG: md_sportscards Set Collector, Bowman Prospector

03-31-2017, 09:08 AM	#2
seabass97166 Banned Join Date: Feb 2015 Location: Los Angeles Posts: 10,685	You are young- go very aggressive. Get in something that can yield around 9% return. Also, get out of your own way, listen to an expert! Swallow that pride.

03-31-2017, 01:05 PM	#5
bradjames12 Member Join Date: Sep 2009 Location: Zionsville Posts: 1,442 bjbena2006	OP, at your age, I would be 100% in the stock index fund. You have plenty of years ahead of you to ride out any market fluctuations. As a FYI, I am 11 years older than you and have 95% of my 401k account in a stock index fund. As far as the "experts" are concerned, I wouldn't give them any money either.

03-31-2017, 01:57 PM	#8
Jr32591 Member Join Date: Oct 2010 Posts: 404	Thank you everyone for your advice. It seems a lot of people are encouraging me to put my money in the stock fund.

03-31-2017, 04:12 PM	#9
snakeeater Member Join Date: Jul 2010 Posts: 140	At your age, I would agree with the stock funds. Be careful though. Make sure you look at the fees associated with the management of the funds and the make up of each fund. You may be making 8-9% on the funds but certain funds can take 1-2% for management, which leaves you losing out on money in the long run. If you are like many Americans, you don't have the time to manage your allocations regularly. To hedge your bets, make sure that the funds are diversified within themselves. Lastly, research, research, research. You have to make the time to look at your portfolio and learn the market. The more you know, the better you can invest. Hope this helps.

03-31-2017, 05:20 PM	#10
JMarchand1981 Member Join Date: Jul 2013 Posts: 34,438	Over time, nothing truly bests an index fund. Do not pay a professional. They are just going to put you into a mutual where you also pay an expense ratio. It's like paying taxes twice on the same money. Kind of a bad move if you ask me. Professional money managers these days are just algorithm kings and most do not beat an S&P index fund.