Message Font: Serif | Sans-Serif
No. of Recommendations: 0
What funds do you have a choice of? Do you have an index fund? What is the performance history of the funds you are looking at. Your biggest danger with bond funds right now is that they won't get you where you want to go in 40 years when you are ready to retire, and as the economy picks up, bonds will likely suffer. It is great you are saving at so young an age but it does not do much good if you do not give your investments some room to walk around.

I would recomnend an agressive approach if you think you can tolerate the risk and rollercoaster ride of a long term investments strategy. No more than 10-15% high yield (risk) bonds, 80-85% stocks. Of those equities, consider putting 10-15% in international funds (over time, tends to balance dips in the domestic market), 30-40% in large cap funds, and 30-40% in small and medium cap funds. I am keen on value versus growth these days as I feel small undervalued companies are better positioned to take advantage of an economic recovery.

Most importantly, only make decisions you understand. Do not do anything because somone tells you to, no matter how Foolish they may be. Your investment eduction has already begun - attack it!
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.