Hi,
First let me apologize. I am a newbie to 401K plans and I am just beginning to understand the basics.
If this question has been asked already please direct me to the related thread.
My scenario:
I have a 401K with Wells Fargo through my employer.
Employer matches 100% for the first 3% and 50% for the next 2%.
100% of my account balance is allocated to State Street Target Retirement 2050 P.
Question:
I understand how the contribution part works, but I am confused about the fund (State Street Target Retirement 2050 P SSDLX). Wells Fargo lets me choose which fund to invest in. But I am not sure if I understand the "investing" part. My 401K plan does not give me any dividends so why does it matter which fund I choose? Does my 401K increase or decrease based on the performance of the SSDLX? If yes how and where would I be able to see those earnings or losses in my statement? Is there a minimum balance in my account that is protected no matter how the SSDLX performs?
Help & advise is much appreciated.
