What kind of 401k fund is safest, and yields most profit?


By admin ~ August 29th, 2009. Filed under: General.

What kind of 401k fund is safest, and yields most profit?

Fidelity is the investment company my company uses for their 401k plans. The Fidelity website I visited just confused me. I don't understand all that mumbo-jumbo. I really don't know exactly how 401k works. I need to be able to make an informed decision soon, or I have to forfeit starting a 401k account for this fiscal year. I am interrested in investing in something that is going to yield a fair profit steadily over a long period of time. Also, I don't want to risk losing the money I put into this account, or worse, lose more than what I put in! Is there a sweet compromise between risk and profit? I need some answers in layman's terms, as I am in unfamiliar territory.

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2 Responses to What kind of 401k fund is safest, and yields most profit?

  1. admin
    August 29th, 2009 at 4:31 pm
    SMITH BARNEY
  2. admin
    August 29th, 2009 at 4:31 pm
    Definitely get into the company 401K program at work. And start with the same percentage your company is willing to match you up to…. Say the company will match your contribution at 50% up to 4% of your salary. Then put the 4% in. Even though you don't understand investment strategy you will be okay. The company that your employer uses knows how to invest. Your money is going to be pooled in a portfolio which is diversified. After you have been in it a year, and have had that time to look into some of the specific company's on the portfolio, then start making decisions as to whether you would like a higher percentage of what you are putting in each payday to go to higher or lower risk things.

    Don't wait until the next sign up period to get into the company 401K. Once you are vested the money the employer has been matching for you will be yours too. You don't need to know anything about any of that to start up. Go for it!!!

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