Additional Information from OP
We found out that the 401k admin costs are .8%. Company does offer automatic deductions for a Roth IRA in addition to the 401K. In 2013 she made $24k which put her in the 15% tax bracket with a 12% effective rate (she had a $14,600 AGI). She paid $2500 taxes, owed $1700 and got a $800 refund. This year (2014) she will make 32,000.
With this information, it seems she should put her money in the Roth since her taxes are low (Our logic is you put money in the 401k to save taxes today). Perhaps later when her taxes are higher, she should go to the 401k.
Since she is only 23, she should be moderately aggressive with her investment options. We are thinking along the lines of 80% stocks and 20% bonds. Her company offers:
Alger midcap growth
DWS Intl fund
Janus Adviser large cap growth
PIMCO total return fund
American beacon large cap value fund
Neuberger Berman Focus fund
SSgA S&P 500 Index Fund
and various conservative mostly bonds, investing vehicles
we like the aggressiveness of the Alger growth fund, the broadness of the S&P 500 for diversification and the bonds for risk reduction through asset allocation. Are we on the right track in your opinion or do we not understand? Please, we are learning and any advice will be greatly appreciated.
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