ok, so now that the rock is split open (my skull) and I am making the investment move. The questions are bubbling to the top!!

I am already convinced that I want to purchase stocks, I have a list that I have been watching......HOWEVER, The company I work for offers a 401K to which they match .50 cents on the dollar up to 6% of my salary.

How do you say no to that "free money" if one does not believe that mutual funds are the way to invest? :stirthepot:

You don't.....the free money is a guaranteed 50% returned even if it has to be invested in mutual funds, it's too good to pass up. My 401k is the same way, but I just ensure I diversify my $$ across multiple funds, just like I do with stocks. Just make sure you research the fees the mutual funds in your 401k charge as they can vary drastically.

You must take the free money! 50% gain on your 6% contribution. I never say no to guaranteed free money.

Take the 50% match at minimum to the maximum of the match. Be sure to then select a diversified investment option with the company managing the 401k. For me, Fidelity is the brokerage company that manages my company's 401k. I can't pick individual stocks as an option. So the option I chose was the targeted retirement option. I could have done large cap, small cap, foreign, etc.

Take note that GW DIDN'T say......... so smart. :sieg:

Trey, ours is Fidelity as well.

I think my age would favor large cap funds, and small cap funds tend to have higher fees as well as being more volatile. IMHO

Well I would have to disagree with those that say the 6% match is "FREE" money... because it depends what the investment is in. Pouring money into a POS fund is LOSING money big time... or loss of opportunity. So it's not really free... and in fact could cost you HUGE.

Ordinarily it is a good choice because people that choose it aren't good savers/investors in the first place... and at least this gets them something. And it's taken out of your check PRE tax... which is another good thing....

But don't just take this at face value. Do a bit of work before you make these kinds of choices. You may be able to do FAR better on your own - than the so called "free money".

Many times the choices inside these company plans are watered down so that the "fiduciary responsibility" of the management is protected... they're far more interested in you not losing very much as opposed to you making a killing.

I have no clue what your age is.... but the younger you are the more risk you should be taking because while something might be more volatile -- that means they're usually also highest growth when things are going great... The Russell 2000 Small Cap index was up about 46% this year... do that once or twice and you have a double real quick. If you've doubled and then you go down 20% from the double - who cares... so it all depends on your age.

Closer to your age than you know!! :unibrow:
Truth be told, 55



Reading as much as I have in this thread, I had a hunch you'd take that stance...... I also wonder what their "fees" usually amount to annually?? Which has the effect of taking away from the company's "match" money
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Actually it's = my company kicks in .50 cents for every dollar I invest...up to a max of 6% of my salary.

I have both Vanguard accounts and Fidelity accounts. I think Fidelity's website is laid out better and easier to navigate. You may want to consider them even if you don't go with the 401k through your company. Keep in mind that a Roth IRA is available to you if you are below the income limit.

I'm not sure if I'm limited on my choices because Fidelity says so if because my employer doesn't have it set up that way. I just know in may case that I have a good number of options inside the 401k to choose from. Hopefully that's the case with your company as well.