401(k) Millionaire Beginners Guide (2 of 3) - How to Make Sense of Your 401(k) Funds (Step-by-Step)

Do you need clarification or help knowing where to start, what funds to select from your 401(k) plan? This video breaks down convoluted and complex financial terms into easy-to-understand words to maximize your 401(k) returns by minimizing fees and mitigating risks. Avoid making a $621,000 mistake.

0:00 Intro: 401K fund selections and terminologies can be confusing
0:35 Intro: Picking funds underperforming the market and high fees can cost you $621K
1:09 Intro: Chapter markers if you have some experience
1:20 Fund naming convention
2:16 Expense ratio, fees. Don't make a $621,000 mistake!
3:29 Expense ratio ranges in typical 401(k) funds
4:23 Funds average annual returns
6:39 Asset class
7:06 Stock Investments - Funds within Large Cap, Mid Cap and Small Cap, International Market
7:25 Stock Investments - What is market cap?
8:04 Stock Investments - How market cap is calculated
9:36 Stock Investments - How publicly traded companies are grouped into different market caps
10:54 Bond Investments - Bond funds overview
12:11 Bond Investments - What is bond?
13:17 Blended Investments - Target Date Fund "TDF" falls under blended investments
13:39 Blended Investments - What is a Target Date Fund "TDF"?
14:03 Blended Investments - Target Date Fund "TDF" asset allocations for different target years
15:08 Blended Investments - Not all Target Date Funds are created equal
16:41 Passively managed "index" fund vs. actively managed fund - ongoing debate which one is better...
17:36 What is Index?
19:29 Passively managed funds vs. actively managed funds fees difference
20:08 Other three areas where you can spot passively managed "index" funds
20:56 Actively managed funds historical performance against S&P500
22:08 Sports analogy on predicting and picking the right fund 15+ years out
25:28 Deep Dive into 401(k) Funds Intro
26:19 Deep Dive into 401(k) Funds - Large Cap - VANGUARD INST INDEX (VINIX)
33:00 Deep Dive into 401(k) Funds - Large Cap - TRP BLUE CHIP GRTH (TRBCX)
37:37 Deep Dive into 401(k) Funds - Bond Fund - VANG TOT BD MKT INST (VBTIX)
40:44 Deep Dive into 401(k) Funds - Bond Fund - DODGE & COX INCOME I (DODIX)
42:18 Deep Dive into 401(k) Funds - Bond Fund - PGIM HIGH YIELD Z (PHYZX)
44:16 Deep Dive into 401(k) Funds - Target Date Fund "TDF" Fund - Quick overview of all the "TDF"
45:50 Deep Dive into 401(k) Funds - Target Date Fund "TDF" Fund - FID FDM IDX 2025 IPR (FFEDX)
48:17 Deep Dive into 401(k) Funds - Target Date Fund "TDF" Fund - FID FDM IDX 2045 IPR (FFOPX)
50:24 Deep Dive into 401(k) Funds - Target Date Fund "TDF" Fund - Which one is right or you?
50:32 Quickly go over stable value fund - Not my cup of tea
51:10 Deep Dive into 401(k) Funds - Recap, what to look for
52:06 Homework - Take note of the ticker symbol for your potential top funds
52:54 Summary / Takeaway

Disclaimer
I'm not a financial advisor, a tax specialist, a doctor, or a lawyer. This is not financial, medical, tax, or legal advice. I'm only sharing my failures, learnings, and successes. Never blindly follow a stranger or so called "expert" stock picks, perform your own research.

#401k #investing #retirement #investingforbeginners #investment

[WholeMindsetMastery]

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