I'm 25 and just signed up for my companies 401k. I'll be putting the company match (5%) in for now, although that is very likely to increase shortly. My question is this: there are about 25 different choices to pick, a) do most people choose like 7-8 different ones to diversify, and if so what percentages are standard? b) isn't the point of some of these choices that they are already "diversified". Right now I'm just looking at putting 50% in large cap fund and 50% in retirement 2050 fund. Is this completely idiotic? I know nothing about investing and figured I would bring it here before I called t. rowe price.

This post was edited on 4/27/11 at 11:46 am

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Posted by Chad504boy

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Member since Feb 2005

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Posted on 4/27/11 at 11:40 am to PillPusher

john hancock?

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Posted by PillPusher

Gulf Coast

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Posted on 4/27/11 at 11:45 am to Chad504boy

i don't follow

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Posted by Chad504boy

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Posted on 4/27/11 at 11:55 am to PillPusher

what financial company are they using?

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Posted by PillPusher

Gulf Coast

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Posted on 4/27/11 at 12:02 pm to Chad504boy

t. rowe price

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Posted by agdoctor

Louisiana

Member since Dec 2004

3142 posts

Posted on 4/27/11 at 1:03 pm to PillPusher

The 2050 fund does the allocation for you based on your age. If you are not going to learn all about investing its probably the best place for your money and there is really no need to use the big cap fund.T.Rowe Price is pretty conservative and I have been very satisfied with the returns.I would park in the 2050 fund now and then learn about mutual funds and asset allocation. Biggest thing I would suggest is save as much as you can now while you are young.

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