I’m 22 years old and setting up my first 401(k). I earn $85,000 annually and plan to retire at age 65. I’m new to researching stocks but keen on maximizing growth potential for my investments. Here are the options available to me:
Stocks:
- AM CENTURY SMALL CAP VALUE R6
- AMERICAN FUNDS EUROPAC GRW R6
- BLUE CHIP GROWTH FUND
- CARILLON EAGLE MD CP GR FD R6
- FIDELITY MID CAP INDEX FUND
- INVESCO DEVELOPING MKTS R6
- J HANCOCK DISC VAL MID CAP R6
- JP MORGAN EQUITY INCOME R6
- PRINCIPAL SMALLCAP GROWTH I R6
- VANGRD FTSE ALLWLD XUS IDX ADM
- VANGUARD 500 INDEX ADMIRAL
- VANGUARD SM CAP GROWTH IDX ADM
- VANGUARD SMALL CAP INDEX, ADM
Bonds:
- JHANCOCK STRAT INCOME OPPS I
- JPMORGAN CORE BOND R6
- VANGUARD INTERM TERM BOND IND
Money Market / Stable Value:
- TRP STABLE VALUE FUND - N
Age-Based Investments:
- T ROWE PRICE RETIRE 2005 TR E
- T ROWE PRICE RETIRE 2010 TR E
- T ROWE PRICE RETIRE 2015 TR E
- T ROWE PRICE RETIRE 2020 TR E
- T ROWE PRICE RETIRE 2025 TR E
- T ROWE PRICE RETIRE 2030 TR E
- T ROWE PRICE RETIRE 2035 TR E
- T ROWE PRICE RETIRE 2040 TR E
- T ROWE PRICE RETIRE 2045 TR E
- T ROWE PRICE RETIRE 2050 TR E
- T ROWE PRICE RETIRE 2055 TR E
- T ROWE PRICE RETIRE 2060 TR E
- T ROWE PRICE RETIRE 2065 TR E
- T ROWE PRICE RETIRE BAL TR E
Given my age and desire for growth, I would focus on equity funds that have historically provided higher returns over the long term. Specifically, I might consider investing in:
- Vanguard 500 Index Admiral - Provides broad exposure to large-cap U.S. stocks with low expenses.
- Vanguard Small Cap Growth Index Admiral - Targets smaller U.S. companies with potential for growth.
- Invesco Developing Markets R6 - Offers exposure to emerging market stocks, which can be higher risk but offer strong growth potential.