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Financial Planning / Foolish 401(k)s


Subject:  Re: Armchair advisors: Review my 401k Date:  11/13/2002  3:24 PM
Author:  Mark0Young Number:  15539 of 26309

Current Allocations:

Fidelity Aggr Growth - 3%
Fidelity Blue Chip - 23%
Spartan US Equity Index - 25%
Fidelity Intl Grth & Inc - 19%
Fidelity Balanced - 31%

If the volatility doesn't bother you, it looks ok to me.

Over the long run, stocks are likely to be the best investment to grow one's money, but over the short run there may be a lot of volatility.

I think a little bond expsure is good, but I think the 11% bond exposure in your portfolio is probably appropriate for a 35-year (or more) investment horizon. (The Fidelity Balanced is 35% bonds.)

Being young I thought I might get more aggressive, especially now.

Yes, if you want, and if inceased volatility (including deeper lows as well as higher highs) doesn't bother you, reducing the bond exposure (less "Balanced") and increasing equity exposure, such as Equity index and International, could be a nice choice.

Risk isn't always rewarded, and different fund managers have different ideas on what is meant by "aggressive growth," so one may want to investigate what "Fidelity Aggressive Growth" is investing in before deciding to make it a substantial portion of your portfolio. This is the Morningstar quicktake:
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