The Motley Fool Discussion Boards

Previous Page

Financial Planning / Foolish 401(k)s

URL:  https://boards.fool.com/ah-sorry-about-the-misunderstanding-drew-well-34101730.aspx

Subject:  Re: 401K Fund Diversification Date:  1/7/2019  9:15 AM
Author:  TMFMurph Number:  26206 of 26270

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).


Cheers!
Murph
BL and MFPP Home Fool
Copyright 1996-2019 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us