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danbobtx, BlastOff 2019 is a new service launched last month by David Gardner which recommended 20 companies up front following the Rule Breakers investment philosophy. The goal is aggressive, to maximize returns over the next 5-10 years by investing in high growth opportunities, some which may not pan out.

In my experience, 401k funds tend to be more conservatively managed than a portfolio like BlastOff, and I would not read too much into the performance of a technology fund or ETF over the last couple months. When the market swoons like it did to close out 2018, that's more a reaction to macro economic conditions than a particular weakness in the tech industry or in any individual companies.

That said, I would encourage diversification. OP will know that the BO19 portfolio has a lot of tech companies that are serving diverse markets. I had this conversation with my investment club last month, making the point that the definition of a tech company has evolved over the decade. Once upon a time, a tech company was any company that relied heavily on tech to operate. Amazon was a tech company, but would you call them that today (AWS)? Or maybe a media company (Prime Video)? Or an online retailer ( Or how about a grocer (Whole Foods)?

The lines have blurred. To me, a tech company today is a company, such as Palo Alto Networks, that exclusively makes technology products or services. Shopify would be a tech company - it provides a cloud-based eCommerce platform. Apple is more a productivity and entertainment services company, focusing on its central iTunes hub and using its devices as outlets and interfaces. Disney is moving to more Direct-To-Consumer OTT products (ESPN+, Disney+) but remains at its heart and entertainment business.

Even at age 50 (congratulations for making the half-way mark!), I would focus on risk tolerance. With about 15-17 years until retirement (age 67 1/2 to receive full Social Security benefits), you can afford to tolerate the risk of an aggressive growth portfolio but start to introduce some more conservative elements. Maybe 10% in cash and bonds, and look for some dividend-paying stable equities. You'll want to adjust the balance as you go along.

By the time you reach retirement, you'll want to have 5-8 years worth of living expenses in cash or cash equivalents so that the next time a market like this one, you won't be worried about having to liquidate investments at price lows in order to pay the next month's bills. That does not mean all your money should be in a savings account, but you'll want to move it in stages each year, from your aggressive pool to your conservative pool to your cash pool.

You should also be thinking in terms of asset allocation. BO19 has a nice mix of Large, Mid and Small Cap companies, though it leans heavily towards the large cap. You may want to have your 401k also mirror that allocation or compliment it by increasing the exposure to small and mid cap companies. You may also want to add some exposure to international if you feel BO19's selection is too small.

Again, OP's options are limited to what is available in their 401k plan as well as any IRA or Retail investments outside of their 401k (it's not too late to invest in a Roth IRA if eligible).

Who thinks now is a great time to begin allocating 401k purchases into new funds and then watch the dollar-cost-averaging flowers bloom down the road when the market recovers...

Ticker Guide for The Walt Disney Company (DIS), Intuit (INTU), Live Nation (LYV), CME Group (CME) and MongoDB (MDB)
Disclaimer: This post is non-professional and should not be construed as direct, individual or accurate advice
Disclosure: May own shares of some, many or all of the companies mentioned in this post (
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