401k help-please

I am a management employee with Verizon, 46 years old with approximately $26,000 currently vested in my company's 401k plan. I make approximately $85,000 per year and don't have a mortgage anymore. I am currently investing 6% on a pretax basis.I need some advice on two things:

1) What percentage should I be contributing to my 401k plan in the current environment?

2) How should I allocate my contributions?

here are some of my plans details. Thank you for any advice.

* You may contribute between 1% and 25% of your eligible pay each pay period.

*Your contributions may be made on a before-tax, after-tax or Roth 401(k) basis (or in any
combination of those types of contributions).

*If you are an eligible management employee, you have the opportunity to receive company
matching contributions of up to $1.50 for every $1 you contribute up to 6% of eligible pay (a
maximum of 9% of eligible pay in company matching contributions).
⎯ The company will contribute $1 for each $1 you contribute up to 6% of eligible pay each pay
period.
⎯ The company may contribute an additional discretionary performance-related match of up to
$0.50 for every $1 you contribute up to 6% of eligible pay.

*For both management and non-management participants, 50% of the company matching
contributions, including the performance-related match, are made in cash and allocated to your
account according to investment choices you have made for your regular contributions. The other
50% of company contributions are made in Verizon common stock that is invested in the Verizon
Company Stock Fund or the Verizon Stock Portfolio.

My options:

Target Date Funds Asset Class Investment Options
• Retirement Income & Investment Fund
• Verizon 2010 Fund
• Verizon 2015 Fund
• Verizon 2020 Fund
• Verizon 2025 Fund
• Verizon 2030 Fund
• Verizon 2035 Fund
• Verizon 2040 Fund
• Verizon 2045 Fund
• Verizon 2050 Fund
• Institutional Money Market Portfolio
• Conservative Fixed Income Fund
• PIMCO Real Return Bond Fund – Class I (Inflation-Protected Bond+)
• Global Bond Fund
• Pyramis REIT Commingled Pool
• U.S. Large Company Fund
• U.S. Large Company Index Fund
• U.S. Small Company Fund
• International Company Fund
• International Company Index Fund
• Private Global Real Estate Fund
• Emerging Markets Fund
• Global Opportunity Fund
• Verizon Company Stock Fund

I am currently investing 65% in VZ company stock, 10% International Co Fund & 25% in US Small Co Fund. As I said I am not a investor and appreciate any help in how to best invest in my 401k plan.

1. 19%, plus you should open a Roth IRA if you don't have one, and put $5k in that.

2. 100% Verizon 2030 fund

85k per year suggests (if you are single) that you have a std deduction of 5700 and exemption of 3650. 85k-9350=75650. This is in 25% tax bracket. I would contribute at least 15% of earnings to a retirement plan. You will save 25% in federal taxes on every dollar contributed (if you could contribute 41k you would be saving only 15%- but 41k is well beyond max of 16500 for whole year).

The 19% mentioned by another poster is just short of the 16500 401k max for the year.

The 2030 fund mentioned by another poster suggests retiring at age 68 in year 2030. This is not bad advice.

I like the way your 401k is designed! The PS is distributed based on participation in the plan, meaning people who care about retirement get the contribution.


Great advise from both previous posts.
When you ask "how much should I contribute?", are you also wondering how much should be available at retirement?
If so; the conventional wisdom is to have enough to live off the investment gains. Leave the principal alone. The last thing you want to do is outlive your retirement.

Now that your house is paid off, you can replace that house payment with retirement savings. so 19% of pay might not be difficult for you!

Notice everyone ignored the "in the current environment" caveat in your first question. Just keep investing on a steady basis, whether in good times or bad. That's what dollar-cost-averaging is all about!