Just got invested in the company's 401(k)

[TransitJohn]

putting in 4% which they're matching. I'm 37, with no retirement savings yet, and also a 13 year old daughter who will start college in 5 years. Should I go aggressive now, while prices on the stocks market are relatively cheap? This is my textbook strategy right now, right?

[lapfog_1]

1. buy gold. - n/t

[MNDemNY]

3. Why? it is at all-time highs.

[lapfog_1]

14. It's unlikely to sink.

And IF there is inflation, it's a good hedge.

Not saying you will make a killing buying gold, but you have a better chance of asset preservation (better than stock, bonds, CDs, and cash) if the shit continues to hit the fan.

[we can do it]

5. and Beanie Babies

[TransitJohn]

7. Haha

Right....I'm gonna get a major corporation to double my money in gold, and match my buys. I don't think so.

[lapfog_1]

13. Gold stock. Usually trades same as the companies proven gold reserves (discounted). - n/t

[A HERETIC I AM]

15. Not every 401(K) plan offers a gold fund....

and the 401(K) that allows purchase of individual stocks is a very rare bird indeed. Unfortunately, your suggestion is one the OP'r is likely unable to follow in any case.

[MNDemNY]

2. I am currently putting any excess income into mutual fund.

IMO it is the time to BUY!

[Lochloosa]

4. At your age it's simple. Yes.

[TransitJohn]

9. I thought so.

Thanks for a serious, if brief, reply.

[LuckyTheDog]

6. 4% is not enough

Go to 10% or even 12%. Invest mainly in a stock index fund. The S&P 500 is still cheap (IMHO) but keep some in cash and some in bonds. I am not an investment adviser or professional. But that is what I would do.

[TransitJohn]

8. I couldn't make it day to day

over 4% right now. I haven't been doing any field days and am basically subsisting on my salary. I've only worked 6 weeks all year.

[LuckyTheDog]

12. I can relate

I have been out of work for 9 months. But try boosting the amount over time. The money comes out before tax... to the impact on your take-home check could be less than you think.

[Bolo Boffin]

10. Do 4% to get your company's match

Then set up your own Roth IRA at your bank and put 6% at least into it. Everything in the Roth IRA will be taxfree when you retire. This assumes that your company's 401(k) isn't a Roth vehicle - they usually aren't.

Bottom line: give yourself the raise the company is offering, and then find better terms at your bank.

[nbsmom]

19. Be careful setting up investment accounts at banks

They usually want to sell you CDs or loaded mutual funds - stuff that they can make $$ on when you open the account. Sometimes makes more sense to set up a Roth with E-Trade or Ameritrade or Schwab.

[A HERETIC I AM]

11. Do yourself a favor....

and determine as best you can EXACTLY how you feel about risk. Take a risk tolerance quiz like this one;

http://moneycentral.msn.com/investor/calcs/n_riskq/main.asp

Google "Risk tolerance questionnaire" and you'll get dozens of them. Take the time to do at least 3 or 4.

You would be well advised to ascertain the 5 letter ticker symbols for the various mutual funds offered by your plan provider. They are not always readily available, but a little research can turn them up (might involve a call to the plan provider). The reason I suggest this is because you can do a more thorough job of putting together a mix of funds that suits your risk tolerance.

Once you have found out the tickers (all mutual funds have 5 letter ticker symbols that end with the letter "X") look them up on Morningstar as well as Yahoo and any other finance sites you like. Morningstar rates virtually every single mutual fund out there, (more than 10,000 of them) and you want to pay attention to investment style, allocation, turnover, expense ratios, Alpha, Beta, R-Squared and Standard Deviation. www.investopedia.com is a great resource for definitions of those terms.

If your 401(K) is typical, you will have 30 or fewer different funds to choose from. Some of them may be "Target Date" type funds. Please take the time to learn about those types of funds. They are almost always "Funds of funds", meaning their portfolios are made up of other mutual funds instead of individual stocks and/or bonds and can be expensive to own. You pay for management of an allocation plan you can likely do yourself with just a bit of research.

If you want to be smart about it, the answer is much more complex than "At your age it's simple. Yes."

[OllieLotte]

16. TJ - Follow Heretic's advice. n/t

[Po_d Mainiac]

17. Heretic or Soothsayer? Follow his advice, or be willing to take the hit. n/t

[notesdev]

18. Stocks are not cheap

look at the historical P/E ratios and do the numbers... stocks would be fairly priced at HALF current valuation.

I wouldn't put a damn dime into anything other than a money market fund right now.

[Joanne98]

20. Go very aggressive. .

[Xenotime]

21. Why when the economy is only showing signs of worsening..

This "free" market economy is a proven failure.