What Are You Invested In?
Updated: Oct 16, 2021
The act of investing begins in defining your goals and determining the time frame for them.
For example - a person starting their career, with 30 or 40 years until retirement, may not have retirement as their end game. Instead, saving for their first home, planning for a first baby or paying for college for their children may be their most immediate goal. So - while they may have investments geared towards a 40 year return, they may also need some geared towards a 5-15 year window. Those are completely different risk calculations, return calculations and therefore, different investments. Whether you are an active investor or not, if you are contributing to any type of investment vehicle (401k, 457b, whatever-whatever your name that employer calls it), then you should be looking at what it is invested in.
So here's an exercise (it won't hurt, I PROMISE). Look up your retirement plan - the paperwork that HR gave you when you took the job. Go figure out how to log in to the account and find out what you are invested in. If you've been taking money out of your check, you owe it to yourself to find out where it is going. And if you don't have a CLUE what you're looking at, go ask. Someone at HR, someone in your department - Google - find out. It's great that you are saving money, but it would be a shame to be saving and never know if it's achieving the your goals.