Beginner’s Guide to Investing in a 401k | BeatTheBush

by | Dec 9, 2023 | 401k | 33 comments

Beginner’s Guide to Investing in a 401k | BeatTheBush




You landed a new job and got a shiny new 401k. Which fund are you to invest in and what should you do when switching jobs? What if there is a down turn, would you be inclined to pull it out after you see it down 50% for a year and the market seems to be lagging for forever? Let me discuss the strategy behind how you are suppose to invest so you can be prepared in case any of this happens.

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Investing in a 401k for Beginners

When it comes to planning for retirement, investing in a 401k is a smart move. It’s a tax-advantaged retirement savings account offered by many employers, and it allows you to contribute a portion of your salary to your retirement fund before taxes are taken out. This means you’re able to lower your taxable income while saving for the future.

If you’re new to investing in a 401k, it can seem overwhelming at first. But with some basic knowledge and a clear plan, you can set yourself up for a secure and comfortable retirement.

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Here are some tips for beginners looking to start investing in a 401k:

1. Understand Your Employer’s Plan
The first step is to familiarize yourself with the specific details of your employer’s 401k plan. You should know things like the matching contribution policy, investment options, and any fees associated with the plan. Take the time to read through the plan documents and ask questions if there’s anything you don’t understand.

2. Start Early and Contribute Regularly
The earlier you start investing in a 401k, the more time your money has to grow. Even small contributions made regularly can add up significantly over time. Aim to contribute enough to take full advantage of your employer’s matching contribution, if they offer one.

3. Diversify Your Investments
Many 401k plans offer a range of investment options, including stocks, bonds, and mutual funds. Diversifying your investments can help mitigate risk and maximize returns. Consider your risk tolerance and long-term goals when choosing your investment options.

4. Monitor and Rebalance Your Portfolio
It’s important to regularly review and adjust your 401k portfolio to ensure it aligns with your retirement goals. As you get older, you may want to adjust your asset allocation to reduce risk. Rebalancing your portfolio can help keep your investments on track.

5. Avoid Early Withdrawals
While it can be tempting to dip into your 401k for financial emergencies or large expenses, it’s generally not a good idea. Early withdrawals can come with hefty penalties and taxes, and they can significantly derail your retirement savings.

6. Seek Professional Advice
If you’re unsure about how to best invest your 401k or need help creating a retirement plan, consider seeking advice from a financial advisor. They can provide personalized guidance based on your individual financial situation and goals.

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Investing in a 401k is an important step towards securing your financial future. By understanding the basics of 401k investing and making informed decisions, you can set yourself up for a comfortable retirement. Start early, contribute regularly, diversify your investments, and seek professional advice when needed. With careful planning and diligence, you can build a strong retirement fund through your 401k.

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33 Comments

  1. @patiencemartez907

    Initially starting up with $6000 in stocks and ETFs, I can boast of solid 5 figures in my portfolio after 7 months of compounding profits while I and my wife are still on the retirement plan

  2. @henrikraymond5235

    Thanks alot sir I really appreciate your help with this video,I never knew how to make consistent profit in the online trading market till I met Mr Romero pieto who helped me out by Trading on my behalf and also giving me a proper guidance in my trading sectors.

  3. @stanleyfujiwara1394

    I have 40% of my portfolio in TSLA, 30% in AAPL, 20% in AMZN and 10% in NASDAQ.. From March I've been able to make $370,000 from an investment of $180,000… While I'm a huge fan of stock picking, I have made a few rather modest investments in individual companies…I use a financial advisor/broker who handles my portfolio…I'll never stop buying TSLA stocks

  4. @Thetrue70

    Bad teaching techniques

  5. @tquinn63

    Anyone with a 401K, SEPP, IRA, or 403b should watch:@t

  6. @serg.r4860

    Can't you say it in parables or analogies….

  7. @ritaz1870

    This is too much for a beginner…even for me as an Asian…

  8. @scott7495

    I understand completely

  9. @justme890

    I'm so confused. So this is the stock market and you could potentially lose everything? I'm still not sure what a 401k is and why I need it.

  10. @loganross1861

    I don’t understand any of this

  11. @Coco_Love

    I’m lost

  12. @coms1186

    Question for you how do I invest in my 401k?? Also I am not trying to beat the stock market!

  13. @personalfinanceprofessor4554

    Very impressed with your knowledge base and perspective on retirement investing. This is video is probably at a level higher then most beginners can follow, however, I appreciated it!
    -Personal Finance Professor

  14. @absent72

    I understood the concept pretty well as a beginner. Only thing was you used some terminology without defining it. Other than that it was explained well, just make sure to talk to us like we're 5 year olds lol. Beginners aren't going to know what everything is right away

  15. @touxiong519

    Was just wondering what 401k is and so search it up on YouTube, lol the place to go. Anyway my employer offers 401k and match 4% or something like that. There will be a meeting soon about it so I just wanted to know what it is before I get involved in it and now I know. Now that I know what it is I know I don't need it, I don't plan to retire from working. I'm planning to not live beyond the age of 30 don't want to get too old and grumpy. I want to leave in my prime.

  16. @2159745

    You started in chapter 5 man. What is a 401k. That is where you should've started.

  17. @TheDesiguy2011

    So once u choose target date you cannot change it ?? I just picked a target date year 2045 ….

  18. @Team8LA

    I just got a new job which offers 401k. After watched few videos, wait, where is my 401k account and money? I'm just about to open a Roth IRA…TIA.

  19. @amandasmith8327

    OMG!!!! YOU stated this was a 401k video BEGINNERS…
    You started off great & I was going to show my teenage son BUT then you went way into detail that is NO WAY FOR BEGINNERS!!!!! WTH 🙁

  20. @serberuz

    Useless for beginners…. Can't understand anything.

  21. @allyonightmare

    Fucking piece of shit. U suck at explaing

  22. @NiaMSnow

    Please reply back, if I do the 401k will I need to put this on my taxes?!?!?!

  23. @RustyShacklefardd

    I’m trying to figure out wtf the point of a 401k is when you make $9.00/hr and can’t even get full time

  24. @livurlife17

    ….. i wonder if there's another video for extreme beginners?!

  25. @chachee15

    when you take a loan out of your 401k, can we take out the whole amount in the account or do they only let you take out what you put in?

  26. @jenningscunningham642

    my dad lost his ability to retire on 2008. fuck the 401k. make a stable dollar and let us build retirements outside the stock market.

    i did not understand you at all. where am i supposed to put my money. talking with no content.

  27. @lolamento2914

    For beginners?? All this talking confused me more than I was before

  28. @karlaabad5675

    How do you roll it into a RIA?

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