Weasel,
Free advice on the net is worth...you know what I mean.

Tweak is correct: Roth vs company 401K vs ind IRA are just
cubbyholes: they can contain the broad span of "investing"
from all cash to cash equiv. to the wildest azz penny stocks
and many variations in between. I would not lose a wink of
sleep over your current port; you have much time on your
side.

Review your 401k, see what % is devoted to what, investment-wise,
pick 2 or 3 or 4 funds, (maybe 2 or 3 equity indices & a bond fund),
have a smallish % in cash/cash equiv. acct., and keep tossing all
you can/ are allowed into it every year. And, as Gresch said, look at
it once in awhile, and readjust if you think necessary. Save the sweat
for working in the yard.

Broad index funds, eg S&P 500, Russell 2000, Dow Composite,
Wilshire 5000, et al, are simply big baskets that mirror a broad
swath of the mkt. Yes, they go up and, down...over time they
tend to go up. Few of us, including the brokers and geniuses on
the St. can pick "better" than the "market", over time. Thus the
reason for low fee funds, especially Indexes, as above. I would
think your 401k offers a few Index Funds to choose from...

As to your best friend about to become a CFA; good for him, but friends
advising on investing, (20 mins after getting their shingle), is like going to
the rookie Doc for brain surgery, imo. You can listen but pick your own
course, imo.

The econ will recover, over time; it's not necessarily a Dem or Rep fix, imo.
Remember, you have time, at your age...
GL,mD from the home of Cash is Currently King

You're 26! You should be investing his hookers and beer.

There ya go :thumbup:

Loook at it from the other side of the fence - you are buying cheaper today than 6 months ago. That's the beauty of dollar cost averaging.

401K's and Roths are no brainers and I would continue with both at a level that you are comfortable with - at least put sufficient money in your 401K to get that employer matched contribution.

At 26, its a long road ahead and it is prudent and commendable that you are on the road and asking the right questions - it is surprising how many people are not and try and play catch up when it is too late.


(BTW - thanks for all of your input on the various threads on here - good to have a tech. on here from the belly of the beast so the speak.)

OT...

:iagree: ... :thumbup:

At 40 I had to take some steps to stop my 401K from evaporating. For the last 17 years the diversification of: 30% US stock market, 30% Global equities, 20% growth ( the riskiest one) and 20% Money market, was not perfect, but worked just fine. When one goes down the others somewhat moved in the opposite direction. That worked until last year, when all the funds started moving down.
Once Bear Stearns failed earlier this year with clear signs that more speculators to follow, I decided to borrow as much as I could from my own and my wife's retirement plans. Put the procedes into our joint savings account. We are paying back, but we are paying back to ourselves, we are paying interest to ourselves and thus we are replenishing our funds by buying securities at lower prices. If we did not do this, since April our retirement funds would have lost 9%. The key is not to spend the money you borrowed from yourself.

I'm under fifty and I can't contribute to a Roth :stickpoke

http://retireplan.about.com/cs/irasa...a/roth_ira.htm

2007

If your income tax filing status is single, your Roth IRA contribution limit is reduced when your adjusted gross income is more than $99,000. Your contribution limit is zero when your adjusted gross income reaches $114,000.

haigha,
I knew the rules & parameters...I was just trying to avoid a very
complex answer. You are simply single and a high earner...quit
your beefing, :D

Hey, us RetiredBums can't contribute a fookin nickel to any IRA,
as it's based on Earned Income, of which I haven't earned any
in 8 1/2 years. :rolleyes: And, to convert my IRAs to aRoth now,
I get banged on some taxes and then can't touch the Roth for several years.

I'm surprised the greedy geniuses in Congress haven't fiddled/diddled
with the Roth, yet.
BR,mD (Some buying oppotunities, for longer term, are here today, imo)

I'm not complaining, just clarifying for the OP :) I max out my IRA SEP contribution each year. The limits are much higher than traditional or Roth IRAs:

http://retireplan.about.com/od/retir...ira_basics.htm

Now quit your bitchin' about not being able to contribute :nanana: Go chase a little white ball or something :p:

Call and check your 401k limits tooo.....
as a highly compensated employee your 401k has lowered levels as well.
I could not believe it.

That is correctomundo; sort of a funny calculation based on "participation"
and "participation $ amounts" by the rank and file, from memory.

Many companies skate around it a bit by letting the higher comp'd
mgrs, et al, contribute their max, sooner in any given year; at least
that gets your max dough in and woikin, sooner in the calendar year.
That's what we did...

Statute of limitations is up, I think. :D