UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: rkmacdonald Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 78688  
Subject: Re: 401k Program Date: 12/12/1999 9:11 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Bret9273 wrote:
My question is how much on a percentage basis should I put into the Index fund. I thinking of putting some percentages into 1,2,4,5 in addition to the Vanguard INdex and I have yet to research 6,7, and 8.

I think that your first step should be to determine what portfolio alocation you want for Equities vs. Fixed Income. The answer to this should depend on how soon you will need to start withdrawing from the portfolio and on how well you can handle the volatility of equities.

If you have more than 10 years until you will need to start withdrawing this money, you should be primarily in equities. The Vanguard S&P500 is an excellent fund, and very well diversified. You might consider putting all of your equity alocation in this fund.

Then, I think I would put the fixed income portion in the bond fund. If you have 10 years until you'l need it, you might want something like 90% VFINX and 10% bonds. If the volatility makes you nervous, increase the bond percentage. I would go more than 25% bonds though, because it reduces your overall portfolio appreciation potential.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Berkshire Hathaway

Questioning Amazon's Financials
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.