Comments on: How Aggressive Should A 22 Year Old Be With Retirement Funds?

By: JT

JT — Fri, 08 Jul 2011 17:24:20 +0000

A 22 year old should be near wreckless, in my opinion.

Fixed income yields are in the toilet, and holding them to maturity will net you a low return. On the other hand, selling out during a period of rising rates means you lock in the negative convexity.

Go for broke!

By: youngandthrifty

youngandthrifty — Mon, 22 Mar 2010 03:26:10 +0000

I didn’t know you were so young!! Awe man, I feel so old now! Under 25 club.. =( I’m turning 27 this year!

Congrats on the raise! =)
.-= youngandthriftyÂ´s last blog ..Weekend Ramblings and Yakezie Link Love =-.

By: FinEngr

FinEngr — Tue, 16 Mar 2010 22:23:50 +0000

Forgot to ask…Can you get preferred Berk?

If so, buy a few gazillion shares…
.-= FinEngrÂ´s last blog ..3-Month Performance Review =-.

By: FinEngr

FinEngr — Tue, 16 Mar 2010 22:00:37 +0000

Dan,

Since Vanguard has such a low turnover rate, you can create your own “target” retirement fund to mimic theirs, but adding a little extra aggression (something I’ve been thinking about as well). Depending on what that model portfolio looks like, the fees should come out close to their fund. Reviewing once every 6 months should keep it aligned with their adjustments.

Plastics my young boy – PLASTICS!
.-= FinEngrÂ´s last blog ..3-Month Performance Review =-.

By: Daniel

Daniel — Tue, 16 Mar 2010 15:24:19 +0000

@Early Retirement Extreme, As much as I'd love to say 28...I doubt anything before 58 is realistic, and even that may be a stretch. As much as I think I'll be able to save a significant amount, I assume that family will come with many more responsibilities than I even realize. .-= DanielÂ´s last blog ..How to Stop Sweating the Small (and Big) Stuff =-.

By: Early Retirement Extreme

Early Retirement Extreme — Tue, 16 Mar 2010 14:57:28 +0000

It depends on what your time horizon is! 28? 38? 48? 58? 68? 78? .-= Early Retirement ExtremeÂ´s last blog ..How to win a sword fight =-.

By: Austin

Austin — Tue, 16 Mar 2010 02:56:39 +0000

I just got my girfriend to pull the trigger on a Roth with the VFIFX. It’s so easy and you can’t deny the low fees. I have my Roth in the Vanguard Total Stock Market Index, which doesn’t change as time goes on, but it doesn’t deal w/ bonds like the VFIFX.

I didn’t know you were so young, Daniel. Under 25 bloggers unite!

Austin @ Foreigner’s Finances
.-= AustinÂ´s last blog ..5 Mind Hacks to Make Yourself Learn to Invest =-.

By: Dr Dean

Dr Dean — Sat, 13 Mar 2010 14:06:21 +0000

Daniel, I think first off-congrats for asking the question. That means you are in the 1% or less for your age group. How do you like being weird????? :)

The great thing about being young is you can make mistakes and get away with it.

That being said, I would recommend your stepping back and developing an overall plan of what do to with your retirement money. Develop a plan of a percentage in stocks, a percentage in bonds, or fixed income, and probably a mixed commodity fund of some sort, to get ready for inflation likely to hit in the next few years.

Once you have a plan, then just have the money moved automaticaly if possible from your savings account.

I think all the options you mentioned are sound. I have had Berkshire shares for years, and it is not always exciting, but tends to go up more than down.

Emerging markets are probably due for a correction, but if you are dollar cost averaging, that doesn’t matter as much, then if you were going to just put a large lump sum.

The other thing I would recommend, is begin to build wealth outside of your retirement plan. I know it means more taxes, but it also gives you freedom. You never know when those tax free plans-IRA’s, etc will have the rules changed by the feds. I am not a conspiracy theorist, but I think saving money in your own accounts along with the retirement options would be wise.

Good luck!
.-= Dr DeanÂ´s last blog ..Homemade Yogurt: Saving Money, and Being Healthy,The Millionaire Nurse Way =-.

By: LeanLifeCoach

LeanLifeCoach — Sat, 13 Mar 2010 06:37:50 +0000

You might want to go a step further and compare each fund with BrightScope. It is a service that PTMoney found. .-= LeanLifeCoachÂ´s last blog ..Combat the Closing Techniques â€“ Fulfill Your Dreams Close =-.

By: myfinancialobjectives

myfinancialobjectives — Sat, 13 Mar 2010 04:55:40 +0000

First of all, CONGRATS ON THE RAISE! I too just started receivingmy new raise payments and it is an amazing feeling (just don't get too generous at happy hour like I did haha)... As far as mutual funds go, I speak directly to my friend of the family on those matters, he has done amazingly well, and knows more than I could ever dream of knowing in that field. So basically sorry, no help there haha:) But congrats on the raise, impressive during these times! .-= myfinancialobjectivesÂ´s last blog ..The Ultimate Motivator: Compounding Interest =-.

By: Budgeting in the Fun Stuff

Budgeting in the Fun Stuff — Fri, 12 Mar 2010 16:20:48 +0000

We’re in our mid-twenties now and have been invested since we were 22. My 401k is in the Vanguard 2035 target date fund and our current Roth IRA is in the Fidelity 2040 target date fund. Both have done well. Our Scottrade account is spread over individual stocks and our next Roth IRA will be invested into individual dividend stocks as well (like Johnson & Johnson and Pepsi).

I’m sorry I can’t point you in the right direction since we’re also figuring it out as we go. I like target date mutual funds since they are so hands off. My husband likes dividend-yielding stocks that have a history of slow and stable growth.

Good luck!
.-= Budgeting in the Fun StuffÂ´s last blog ..Determining Our "Allowances" =-.