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What do you think??? Here is my current allocation. I am 30-years old and the current balance is $28.6k.
Here is the performance for the last 12 months.
Tuesday, February 12, 2008
Retirement Allocation…
For the last few months, I have been making contributions to my 401k but the balance has not moved from the $27k - $28k level. I am thinking about moving all the funds to the balanced fund which is a mix of 60% equities and 40% fixed income.
What do you think??? Here is my current allocation. I am 30-years old and the current balance is $28.6k.
What do you think??? Here is my current allocation. I am 30-years old and the current balance is $28.6k.
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8 comments:
Wow, 40% fixed income? That seems a bit high to me, but who knows, that might be good if the stock market goes down for the next few years.
In any case, if I were you I'd definitely simplify my holdings somewhat. You only need a handful of investments instead of 17 plus a money market.
NO...NO...NO! Don't do it. If you were going to do that, you should have done it last fall. Now all you will do is get out at the bottom and try to get in at the top. Thus, you will miss any big moves. Only people getting ready to retire need 40% bonds. Don't make this common mistake.
I agree with Jon. You have way too many investments. If you look at the holdings for each fund, I suspect a lot of them are redundant. I suggest you decide on an asset allocation then choose A FEW funds that will accomplish that.
you've been tagged!!
Tagged for what?
Oh gosh...Never Mind...LOL.
I found it!!! This should be fun. =)
I concur. 40% bonds is high. The highest figures I have heard go something like "have 100 minus your age in equities" and, personally, I think that overdoes bonds. Maybe something like 110 or even 120 minus your age?
I agree with everyone else - DON'T DO IT! 40% fixed is way too conservative at your age anyway.
You have plenty of time to make back your losses and for now, the more money you put into this down market the better you'll be long-term. It's like buying on sale!
Have you read that book, "Prince Charming Isn't Coming?" Stanny panicked in a downturn and sold at huge losses, like you're suggesting, and it was a horrible move.
But I agree it's painful to watch the retirement account balances drop every month despite contributions. I contributed more than $2,200 last month and my holdings *still* dropped by more than $2,000. That hurt...
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