I know nothing about stocks. Which T Rowe Price fund should I invest my 401k into?

Submitted by scrumblethebumble t3_1262kxn in personalfinance

I have no fear for speculation, I just want a chance for it to grow. Based on flimsy research, I'm assuming the Vanguard Extended Market is the choice. Where would you invest if your options were the following:

CAPITAL GR NEW PERSPECT TR U3

CAPITAL GRP INT ALL COUNT T

LARGE CAP VALUE PORTFOLIO

MID CAP GROWTH PORTFOLIO

SMALL CAP CORE PORTFOLIO

VANGUARD EXT MARKET INDEX INST

VANGUARD INST INDEX , PLUS

VANGUARD TTL INTL STK IDX INST

WELLINGTON CIF II GROWTH S5

____

T ROWE PRICE RETIRE 2005 TR J

T ROWE PRICE RETIRE 2010 TR J

T ROWE PRICE RETIRE 2015 TR J

T ROWE PRICE RETIRE 2020 TR J

T ROWE PRICE RETIRE 2025 TR J

T ROWE PRICE RETIRE 2030 TR J

T ROWE PRICE RETIRE 2035 TR J

T ROWE PRICE RETIRE 2040 TR J

T ROWE PRICE RETIRE 2045 TR J

T ROWE PRICE RETIRE 2050 TR J

T ROWE PRICE RETIRE 2055 TR J

T ROWE PRICE RETIRE 2060 TR J

T ROWE PRICE RETIRE 2065 TR J

T ROWE PRICE RETIRE BAL TR J

1

Comments

You must log in or register to comment.

lucky_ducker t1_je782bt wrote

70 % VANGUARD EXT MARKET INDEX INST (US broad market stocks)

30% VANGUARD TTL INTL STK IDX INST (international developed market stocks)

- OR -

whichever target retirement fund is nearest your 65th - 67th birthday

2

scrumblethebumble OP t1_je78gdm wrote

Again I don't know much, but that sounds like a solid answer. Thank you!

1

Bad_DNA t1_je7ixpv wrote

Before you do anything, you would do well to start learning. Don't trust internet advice about your money -- understand this stuff, learn what these two recommended and why. Most of the basics you can learn from the wiki here. I'm not sure this forum would steer you wrong or run endless fees like a neighborhood 'financial advisor' office would, but you best get to learning about your money and what you think you want to do with it before you follow us.

2

Cash_Visible t1_je78505 wrote

I would choose one of the retirement funds based

2

scrumblethebumble OP t1_je7919i wrote

Looking at their performance, those have performed better than any of them, roughly 9% in 11 years.

1

Cash_Visible t1_je7awn5 wrote

Well the retirement funds have modest growth and are less volatile. You pick the year based roughly on your retirement date. As that date approaches it will add more bonds. Early on it will be more aggressive but less volatile compared to say a growth fund

2

Grevious47 t1_je7snk9 wrote

You cant really read a chart and get an accurate return for a target date fund...they change their assets regularly. If you try to look at the 30 year return for a 2030 fund it will be a smear of returns going from almost all stocks to a fair amount of bonds. That isnt really a good way to read relative performance.

2

Grevious47 t1_je7sjg9 wrote

Id just use the target date fund with the date being your estimated retirement date. So if you think you will retire in 2060 go with the 2060 fund. Unless the expense ratio for those funds are very high relative to the other funds on offer.

1

scrumblethebumble OP t1_je9nlo0 wrote

I think you’re right, I saw somewhere on the website about the fees being lower for target date funds. That’s what I’m going to do. Keep those fees off my profit.

1

Grevious47 t1_jea3bgx wrote

Check the actual fees, target date funds are managed and usually have higher fees than unmanaged index funds. Though in some cases the fees are still very low so it isnt a big deal.

2