Quote:
Originally Posted by SOON2BNSURPRISE
I prefer to put it in my 403B account. A 401K would work as well as some other similar instrument. I would not be too concerned about diversification because most of the time you are in a mutual fund with a retirement program. When you choose where to put the money I prefer the stocks. Money funds although "safe" don't offer the bang for the buck that the market brings over time. In the op's uncle case he should be putting off retirement for the next 20 years and place his money in the highest paying, although possibly risky, investment. Small capps are something that I like.
You can check out a prospectus for any retirment program that will let you know what has paid the most over time. Remember that risk is alleviated over time. In the past couple of years many lost money, but recently things have picked up. In the lean years you would have bought more shares at a lower price. When things get better you would have more shares working for you.
I am no genius in this line, but do know what has worked for me. Also I have many years to go before I am done. Time is a benefit to every down market.
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You don't have to be diversed in your 401K. There are funds to pick from and Asset Allocation makes a big difference on how much you will have at retirement. At his age, I would do 30% Stocks, 70% Bonds. Conservative stocks.
People lost money in the last 2 years because of mismanagement. If you are close to retirement then yourmoney should not be invested heavily in volatile stocks.
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