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How Many 401(K) Funds Should I Invest In? (401K Investing For Beginners)

Well guys here we are once again is this thank you so much for all the support you guys show me on this channel you guys are absolutely wonderful and I really enjoy interacting with all of you now if you want to see more videos like this just let me know by commenting or hitting that like button now the video footage I’m about to show you today is really something I filmed back in 2017 late 2017 before I got my brand-new Canon DSLR camera so if you’re wondering what happened to the quality of the video footage that’s why this is because I filmed it with my old camera as you’re about to see just a couple of things I wanted to mention before we launch this video is that you’re gonna hear what how many funds I prefer to invest in now I’ve looked with him I companies 401 k plan we have around 60 total funds and I spent hours and upon hours researching them before deciding on how many of those funds and which funds I wanted to pick so it might come as a bit of surprise how many funds I suggest you pick in your 401 K but just hopefully you guys will find value in this now at the end of the video I will show you using this strategy and I still use this strategy 100% of how my performance for my 401 K ended as of the end of 2017 and how where I’m at year-to-date in 2018 especially with the market being a little choppy err with all the things going on right now in our economy and with talks of tariffs and things like that so with that being said I hope you guys enjoy the video! I hope you get something out of it and I’m sure you guys might have some questions so feel free to drop questions and comments in that comment section down below all right let’s get that video started thanks so much guys love you all so how many investments should you have in your 401k fund that’s what we’re gonna talk about today in this video what’s up guys it’s Mike also those m’kay at the CPA and this is my sidekick chipper how are you guys doing today I hope you’ve been having a wonderful week my out weeks been pretty good if you’re new to this channel I just want to take a moment to say welcome highly consider subscribing because every single week I produce new videos that are gonna help you with your personal finances your investments taxes and things that are gonna help you not only in your career but your everyday life a lot of questions I’ve been getting from people just in my normal everyday life is like how many I know you make investment videos but how many funds do you our investments do you think I should have in my 401 K so I just wanted to take a moment to speak to you one-on-one about this because I know it’s really confusing I know you’ve gone through school and you’ve now you’re working in a professional position or a position of some kind but nobody ever taught you this stuff so what I would recommend and I’ll just share with you what I do and all of this is just my personal opinion if you find it helpful feel free to use this the rules of thumb I use but if you don’t find it helpful just do your own thing I mean it’s totally up to you so this is just my opinion and I am NOT a professional investor but what I do with my 401 K and what I’ve learned over time is that some I’ve seen people open a 401 K and of course that once they start doing a monthly contribution to that 401 K regardless of the amount let’s say it’s $500 a month or up to $1,000 whatever it is sometimes people will choose 10 or 12 investments and what I got to say to that is I think that’s a little bit of an overkill what I found for me to work the best is actually narrow my focus so I currently in my 401k I only have four investments if you have less than $100,000 in your account I would really only have between one to four investments in your 401k now once you’ve exceeded that amount in that all of these are just rules of thumb guys this something a guideline to follow once you’ve exceeded a hundred thousand then from a hundred thousand to two hundred thousand feel free to add on a couple more investments and you know when you’re at a million dollars if your account grows to that level at that point add you know and maybe have ten to twenty-five investments but when you have less than a hundred thousand dollars in your 401k which is most people in America I would only invest between one or four things and you say Mike well what if I’m not diversified enough well even sometimes people pick a lot of different funds but a lot of those stocks in those funds actually are making them not diversified so when you’re choosing if you’re choosing this one to for investments take them home with the study what those funds are made up of so that each funds you own even though you might only own three or four is not gonna have the same stocks in it and that will give you still diversification even though you only have a few funds so those are some things to consider you don’t have to go crazy with this guys just really what I do is I’m letting my account grow to a hundred thousand dollars and then I will add on more investments from there but just find the best four investments you can for yourself and then proceed from there and just watch it grow that’s what’s been working for me and so far as of November I think my account I looked about a month ago it’s up twenty-two percent this year because I very carefully selected those four funds so take your time and carefully carefully select the four funds the three or four funds that are gonna produce you the highest rate of return in your 401k and of course you have to consider your age and when you’re gonna retire and all that kind of stuff but always consult with this kind of stuff with your company’s financial adviser or with a financial adviser if your company doesn’t have one all right guys that’s really all I have for you today let me know if that made sense if I didn’t explain something or I could explain something better I’m happy to answer any questions you might have I’ll answer them to the best of my ability and you can just leave those questions down in the comment section down below and I will make sure to get back to you alright guys if you liked the video make sure you smash that like button share this information with a friend especially someone who’s looking to invest in their 401k and of course be sure to subscribe if you have not already thank you so much for your support guys I will see you in next week’s video you guys have been a great audience and I really appreciate you taking the time out of your day to watch this video remember on this channel we make new videos every single week that are going to help you improve your financial position your career and your life and so I will see you guys next week you guys are great love you all peace

How Many 401K Funds Should I Invest In? 401K Investing For Beginners. Many people have asked me how many 401K funds they should hold in their 401K. I hope provide some guidance in this particular area.

Video Outline and Time Stamps so you can quickly jump to any topic:

•How many 401K investments is too many? – 2:20
• How many Investments I own in my 401K – 3:29
• Average 401K balance in America for those over age 50 – 4:09
• How to diversify your 401K with only a few investments – 4:40
•The value of choosing your funds wisely – 5:15
• My 2017 401K Performance and 2018 YTD Performance- 6:36

Related Articles to this topic:

https://www.thebalance.com/how-many-mutual-funds-should-you-have-4019503

https://www.cnbc.com/2014/12/11/how-many-401k-investment-choices-are-too-many.html

http://money.cnn.com/2016/03/30/retirement/diversified-retirement-portfolio/index.html

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You should always do your own research before implementing new ideas or strategies. If you are unsure of what to do you should consider consulting with a financial adviser or tax accountant such as an Enrolled Agent, or Certified Public Accountant in the area in which you live.

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