April fools

I don't have any debt except for a low rate mortgage and car loan. Although, I did marry my wife's student loans... : )

@Abge

i know, but the problem with retirement investing is if you get locked in at a lowish rate, then if (and more likely WHEN, given you're talking 40 years) rates rise then you'll be seriously behind.

Beyond a 401K anything with a non-fixed rate is good, as right now rates are very low. However, you must realize that trying to plan for retirement while rates are so low, is not a very good idea. Long term investing is smart, but timing is crucial, and rich now is not a good time.

I'll just ask for people to pay off my debts for me. Might work better than some of the advice here...

@James

I think you are either confused or not expressing your point clearly. A couple things (in general):

1) My employer matches my 401(k) up to 3% (or whatever) of my salary. By not contributing at least this much, I am literally throwing away free money

2) Even if rates are low (Stock Market isn't really affected by this, but w/e) compounding interest still has an enormous impact, so you should start saving as soon as you possibly can.

3) I have no high interest debt, so any money not going into retirement would either be going into a Savings Account (which I already do) or just blown on fun stuff (which I also do)

"i know, but the problem with retirement investing is if you get locked in at a lowish rate, then if (and more likely WHEN, given you're talking 40 years) rates rise then you'll be seriously behind."

Also, to be clear, a 401(k) isn't like a CD that you're locked into for 40 years. Mine is all in stocks now and if I wanted, I could sell all my stocks and buy bonds and then in 5 years buy stock again. I just can't cash out my 401(k) and buy things other than approved 401(k) accounts until I retire.

wait... so are you not asking for alternatives? That's what i thought the thread was about.

because for long term retirement a 401K is fine, and yes compounding interest is great but if you get locked in at a low rate and inflation rises, then it's multiplying effect is lessened. Having a company that matches contributions is also good... i'm getting a bit confused on why this thread is out here.

Also on 2. low rates mean an enlarged money supply in general (further semantics), and right now the FED is having hard time figuring out what to do, because there still is inflation. Clearly expansionist policies in an attempt to stabilize our economy would only exacerbate the inflation, but the threat of rate spikes has many investors disillusioned. Altogether the economy isn't that bad for the working man, but for the typical investor pickings are thin.

also, i wouldn't suggest a 40 year CD rn

Abge, a lot of the decision on what to do comes down to how your current investment plan is working out. If you have a decent return then stick with it, but if not start looking at the other plans offered by your fund's company. Look into the past 5-10 years of growth per plan min and you should find some that seem appealing. If not then I would start digging more into how to pick your own groupings.

Past performance is not indicative of future performance Just saying

But it should be an indicator for urgency in decision making. Decent past performance encourages more time and research, whereas a fund losing money really should be addressed asap.

Yanik. The fed is trying to induce inflation. They have.a 2% target. That's why rates are so lo for so long

I have 85% of my savings in precious metals

@James

"i'm getting a bit confused on why this thread is out here."

My original question was, within a 401(k), how should I divide my funds? Domestic vs foreign, stocks or bonds (already answered based on rates), mostly growth now and then transition to value later? If I'm following the S&P 500 is that good enough? Things of that nature was what I was curious about.

"I have 85% of my savings in precious metals"

That one silver coin you showed me?

...yes

That's funny^^

Low fee index funds are what much of my money is in. As recommended by Jimmy Buffett (or something like that). No one knows what any individual stock or fund will do, and if they did, they wouldn't tell you.

Don't get seduced by some funds past performance. The fund creators make dozens of funds and the losers quietly go away while the winners get advertised.

Read up on the philosophy of Jack Bogle. That's what I will advise my son.

Make your own decision. Don't just do something because some rando on the internet (me) suggested it.

"Make your own decision. Don't just do something because some rando on the internet (me) suggested it."

I can assure you, all advice is being appropriately triaged. : )

abge, as an economist

Invest it in an index fund. You can't reasonably expect to do better than that.

And don't listen to a thing Yanik says, because this:

"Once rates start going back up"

Is a riot act. Rates are going to to be very low for a very long time.

http://www.businessinsider.com.au/the-feds-rate-hike-predictions-and-actual-rate-hikes-2016-9?r=US&IR=T

Yeah, I think I'm mostly in Index Funds atm.

how many of you own your own home (no bank loan), own a rental property, (no bank loan), and all of your cars.

Uhhh, no, no and yes? But I literally started my first job a month ago.

Are you asking out of curiosity or to make a point?

@goldfinger

i was talking about the next 40 years Lol

Yeah, but you can't get a 40 year CD...

true wealth is in ownership of property, especially income property.