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You're doing 50% Vanguard Prime Money Market and 50% Vanguard Midcap Index?
The money market fund has been paying .01% for a long time, and will never pay much more than a savings account. The midcap index is fine, but is not a diversified portfolio all by itself. It holds only mid sized US corporations. So, no Fortune 500 companies, no small companies, and no foreign companies.
Choose a vanguard Retirement Fund (pick 2050)-you are young and the chances of you retiring at 65...well slim. Don't put money in a money market...you can do that at a bank and receive the same % rate.
Also, do the 6%-it's free money because your employer is matching it. I would reduce the ING saving.
Also, don't forget that when you invest (6%) your taxable wages will be reduced.
Another way to approach it is choose your asset allocation, ignore the target year, and pick the fund which is closest to your desired asset allocation. If you want to hold no more than 50% in stocks, the 2015 fund is about that (51% right now). You could buy that, but remember that in a few years, you will want to roll to the 2020 fund to stay at about 50% stocks.
I hope I haven't made you feel more confused. It's really not as confusing as it can sound at first, it just takes some time to pick up the lingo.
Another way to approach it is choose your asset allocation, ignore the target year, and pick the fund which is closest to your desired asset allocation. If you want to hold no more than 50% in stocks, the 2015 fund is about that (51% right now). You could buy that, but remember that in a few years, you will want to roll to the 2020 fund to stay at about 50% stocks.
I hope I haven't made you feel more confused. It's really not as confusing as it can sound at first, it just takes some time to pick up the lingo.
Choose a vanguard Retirement Fund (pick 2050)-you are young and the chances of you retiring at 65...well slim. Don't put money in a money market...you can do that at a bank and receive the same % rate.
Also, do the 6%-it's free money because your employer is matching it. I would reduce the ING saving.
Also, don't forget that when you invest (6%) your taxable wages will be reduced.
eeeek not so young any more...many 21 year olds are ahead of me and have more in their 401K, I have A LOT of catching up to do.
You have 50% in stock funds now. Do you prefer to have no stock funds at all?
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It's really not as confusing as it can sound at first, it just takes some time to pick up the lingo.
