Ok, lets focus here a little, shall we?
When I went back to school in '03 I cashed out all my 401K's and savings (as little as we had) just to try to survive. Even then it was rough but with a little help from my
Best Friend we made it through.
It has been one year since I got my job and during that time
We have made lots of sacrifices but are finally getting to the point of seeing the light from under our debt accumulated during that time....What does that mean? Well it means that in April I get to sign up for my 401K for the 1st time in 3 years and I have to start planning on how to allocate my money. See my company will only match 25% of the first 5% that I invest, now I say "only" but in reality where else are you going to get an immediate 25% return on your money let alone accumulate interest on the total amount over time, so it is not such a bad thing now is it? My
Chief Financial Officer would say never turn down free money....Which is paying yourself first, now isn't it?
Now because I am going into this with some vested interest I have been looking at what my options are. This is what I know, first is that because it is a 401k I am going to have to deal with mutual funds. Now I can choose growth mutual funds or value mutual funds.....Hey I can even blend these two together and choose...Get this...Blended mutual funds...Woo hoo
Now once I get past this little fiasco of choose the style of mutual fund to invest in I should really get an idea of what size of fund to invest in. Now we got "small-cap", "mid-cap" and "large-cap"....Confused yet....Yeah me too.
So I finally get to this point and it gets a little murky because now someone is telling me I should watch out for managed funds and go with unmanaged funds and to top this off I have to deal with "A", "B" or no load fund, but the "B" fund is the A-hole of the group because they double dip apparently and also include a "12b-1" fee.....Holy shit.
Actually I have a pretty good hold on what is going on and I have month to figure it out and run some hypothetical's before committing to such big investment, beside I can still call my
CFO for direction.
Posted by P.Large @
8:07 AM |
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