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I need a little Foolish advice.
My company 401(k) offers the basic variety of choices...company stock, fixed income, s&p 500 index fund, US government securities, russell 2000 small stock index, an international fund, and a capital fund which invests in equity securities of larger market capitalization quality companies. I invest the maximum amount of $9500 a year with my company contributing $1000 a year. I am 36 years old. My contribution elections are 70% to S&P 500 index fund, and 30% to the international fund. The international fund has returned approximately 11% the previous year. My question is, if I am able to handle the market fluctuations, should I be fully invested in the S&P 500 index fund? I ask this question because after reading "The Motley Fool Investment Guide" it suggests that since most companies do not offer a variety of Dow Jones stocks to invest in, the next best thing is a S&P index fund if it is offered by your company, but the book does not say to what percentage you should be invested. Is 100% in a company S&P the way to go?
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Greeting, 2Points, and welcome.

<<I need a little Foolish advice. My company 401(k) offers the basic variety of choices...company stock, fixed income, s&p 500 index fund, US government securities, russell 2000 small stock index, an international fund, and a capital fund which invests in equity securities of larger market capitalization quality companies. I invest the maximum amount of $9500 a year with my company contributing $1000 a year. I am 36 years old. My contribution elections are 70% to S&P 500 index fund, and 30% to the international fund. The international fund has returned approximately 11% the previous year. My question is, if I am able to handle the market fluctuations, should I be fully invested in the S&P 500 index fund? I ask this question because after reading 'The Motley Fool Investment Guide' it suggests that since most companies do not offer a variety of Dow Jones stocks to invest in, the next best thing is a S&P index fund if it is offered by your company, but the book does not say to what percentage you should be invested. Is 100% in a company S&P the way to go?>>

That really depends on you and what you're comfortable with. You're now 70% in your S&P fund and 30% in the international. To me, that's a reasonable allocation. I like keeping part of my money in the international arena to diversify somewhat out of the domestic market. In theory, they move generally together, but not at the same time. As one is down, the other is higher, and vice versa. By keeping money in both, you help abate the downside risk. At least that's the theory, and it's worked fairly well for me for the past 15 years. However, I also have no grief with anyone who wants to keep 100% of their money in the S&P. Different strokes for different folks, ya know. :-)

Regards.....Pixy
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