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Financial Planning / Foolish 401(k)s


Subject:  Re: 401K Fund Diversification Date:  1/7/2019  9:15 AM
Author:  TMFMurph Number:  26206 of 26276

Ah, sorry about the misunderstanding, Drew!

Well, with only 10% of your assets in Blast Off, you certainly have room for more aggressive, positions. Historically, small caps have performed the best over long periods of time, so maybe a small cap fund allocation?

In the end, only you know the nature of your risk tolerance. As Buffett says, if you can't sleep/stand the thought of your stocks being down 50% in a year or so (which is about what happened back in 2007-2009), don't put money in the market. Aggressive positions tend to have even higher volatility than the market.

For me, all "aggressive" positions (including Blast Off and other small caps/ higher-risk, super-value positions are less than 10% of assets), but then, I'm 72 and don't really have much in the way of bonds (and won't until interest rates are closer to historical norms).

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