GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you might read more about oureditorial guidelinesand our products and servicesreview methodology.
But how do you choose such investments?
They may offer you anything from company stock to variable annuities to mutual funds.
Next, Ramsey went over the basics of common investment options you might see on your employers plan.
Target date funds are mutual funds that have predetermined investment mixes depending on the date you plan to retire.
Whats wrong with that?
An ESPP allows employees to buy company stock at a discount through a payroll deduction.
Annuities
Not all 401(k) plans have them, but many do: annuities.
Lets turn that question over to Ramsey.
Things get a little more complicated when it comes to variable annuities, another jot down.
Theyre basically mutual funds under the umbrella of an annuity, Ramsey said.
Though Ramsey prefers these to fixed annuities, he does not recommend them, either.
Seriously, Ramsey said.
You could be paying commissions, insurance charges, rider charges,investment management feesand surrender charges with annuities.
Look Into Growth Funds
Growth funds are usually affiliated with big companies that youve likely heard of.
He recommends allocating 25% of your investments to growth funds.
And then there are international funds.
These too can be a strong player in your diversified portfolio of 401(k) investments.
Also calledforeign or overseas funds, international funds are great for a couple of reasons, Ramsey said.
First, they allow you to invest in non-U.S. companies.
Secondly, they help spread out risk and diversify your portfolio.
When choosing your 401(k) investments, its best to get professional guidance.
Other investors worry that working with their own investing pro will be expensive.
Just verify you know what to expect before your appointment so there are no surprises.
More From GOBankingRates
Takeaway
Finding and working with a financial advisor is a great idea.
A financial advisor will help keep track of your finances and assist you in attaining your financial goals.
Get to know your Financial Advisor options today for Free!
Share This Article:
