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<<You can't really answer your question until you work out at least an approximate retirement plan. Fooldom and others offer a retirement planning seminar for that purpose. In retirement, fixed income investments to the tune of 5 years gross living expenses are important in the Foolish system. But those fixed incomes cannot be in an IRA or 401K. You have to figure out how to get them out of there.

In my view, bond investments of a few thousand for smaller accounts are probably a waste of time--unless you plan to just get your feet wet as a way to learn about bonds for later investment plans.
>>

My current 401K account value is about 100K of which 30K is from my contributions (and the rest from profit sharing) and I was totally invested in Vanguard Institutional index fund until recently I made a change to the new contributions. I left existing portfolio intact and for new contributions I set 85% to Vanguard Institutional index and 15% to Pimco total return. It is a small amount in the bond at this point.

Based on the above remarks, I am wondering whether I made the right choice with regard to the new allocation.

Here is my situtation:

- I am 44, married with 2 young kids going to elementary.
- I have options with current worth (which has declined over the recent years) about $300K.
- I have a ROTH IRA in Vanguard for about $10K.
- I have invested in Vanguard S&P 500 index fund in a taxable account for about $15000.
- I have a home mortgage loan of $150K.
- I don't have credit card debt and no other loans.

thanks in advance,

- kartha
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