Quote:
Originally Posted by captainofiron
I also asked about why they suggested mutual funds as a good thing for a younger person
the only thing they could answer was because I didnt have a lot of capital to invest so mutual fund would be better.
Basically my old 401k is 20k, I was looking at GregWelds suggestion ( https://lateral-g.net/forums/show...&postcount=380) |
I'm going to keep my comments limited to a part of your post, but I'm hoping Greg or someone else will comment on the "really pushing" aspect of your experience with Baird.
If your goal/preference is to achieve a high level of diversification with your $20k portfolio, then yes, mutual funds will be good for that.
If your goal/preference is to buy a basket of best-of-breed stocks in various industries to achieve a lower (but still significant) degree of diversification, then stocks will be the better way to go.
This $20k from your prior 401(k)
isn't likely to represent the lion's share of your retirement savings. Meaning, it's not the end of the world if you don't get this one right the first time, particularly if you learn something along the way. If you'd like to use it to get your feet wet with trading stocks or other investments, then that's something to consider. You might find out that form of investing isn't for you, but you will have learned something. If you'd rather stick the money in mutual funds and check your balance once per quarter to see how it's doing, that's ok too. Really up to your personal preferences.
Investing is not a one-size-fits-all game, so when I hear a company pushing you toward an option and saying, "that's the best way to go", I have to wonder if they are really listening to you, your ideas and your interests. Keep in mind that you can roll those dollars over to any custodian, it doesn't have to be the one your company uses. These are your dollars/employees!!....Jeff steps down from soapbox...