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Author: JoeWV 10+ Year Anniversary! Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75381  
Subject: Self Directed 401-k options Date: 7/25/1998 10:49 PM
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My 401-k fund allows for transfers of retirement savings into a discount brokerage account.
This in turn allows for purchases of stocks as opposed to mutual funds. The discount brokerage firm has a good reputation, and I have roughly 30 to 35 years to retirement. My question is what percentage of retirement savings would you invest in stocks versus mutual funds? Any advice would be greatly appreciated.
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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 4655 of 75381
Subject: Re: Self Directed 401-k options Date: 7/25/1998 11:36 PM
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Greetings, JoeWV, and welcome.

My 401-k fund allows for transfers of retirement savings into a discount brokerage account.
This in turn allows for purchases of stocks as opposed to mutual funds. The discount brokerage firm has a good reputation, and I have roughly 30 to 35 years to retirement. My question is what percentage of retirement savings would you invest in stocks versus mutual funds? Any advice would be greatly appreciated.


There is no magic number or percentage. Some Fools invest 100% in stocks, others far less. It's all contingent on how you feel about doing your own stock selections and how comfortable you are in managing your own portfolio. In short, it's something you have to decide for yourself.

FWIW, if you're just starting to invest for yourself, keep 75% or so in an index fund and do your own choosing for the other 25%. That way if things go wrong, you won't have your whole stash at risk. You can always increase the amount going to individual stock selection later as you become more comfortable about what you're doing.

Regards....Pixy

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Author: JeanDavid Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 4659 of 75381
Subject: Re: Self Directed 401-k options Date: 7/26/1998 8:51 AM
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My 401-k fund allows for transfers of retirement savings into a discount brokerage account. This in turn allows for purchases of stocks as opposed to mutual funds. The discount brokerage firm has a good reputation, and I have roughly 30 to 35 years to retirement.

Wow! All 401(k) programs should be as liberal!

My question is what percentage of retirement savings would you invest in stocks versus mutual funds? Any advice would be greatly appreciated.

Were I in this position, after a little study, here at The Motley Fool and elsewhere, I would put 100%, or nearly, into common stocks versus mutual funds.

If you were considerably older, you might wish to put just a little (e.g., 5%) into treasury bonds or something if you fear a long-term collapse of the stock market, so you would have a backup with which to start over.


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