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Newbie here introducing himself
Old 05-23-2012, 12:22 PM   #1
Confused about dryer sheets
 
Join Date: May 2012
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Newbie here introducing himself

Hello everybody, I stumbled upon this site about a month ago and found this site to be very resourceful so I decided to join. First I'd like to thank everybody here for their very informational and sometimes comical posts. I apologize in advance if some of my posts does not make sense. I consider myself a newbie with all these financial and investing stuff.

Some info on myself and wife:
-Both are 35 and have about $100k combined in our 401k style plan at current employers.
-Both have a company pension with about $70k combined.
-No children yet but planning in the near future.
-Hope to retire by 55 y/o (I know I've got a long way and lots more to save)
-Currently contributing about 15% of our incomes to 401k.


As of now, both of our 401k allocations are 100% stocks. (mutual funds) 40% large cap, 25% mid cap, 25% small cap, and 10% international. We are both very risk tolerant and have a long way to go. However, recently I stumbled onto an article stating that every portfolio should have some kind of bond fund and if you don't you are not diversified enough.

So my question is, am I diversified enough? Should I reallocate to 80% stocks and 20% bonds or something of that mixed. Like I said, we are both very risk tolerant and would like the best return for our money. Any suggestions would be greatly appreciated!! Thanks again!!

Btw, our options in our 401k is only those funds I mentioned, and a bond fund, and an inflation protection fund.
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Old 05-23-2012, 09:04 PM   #2
Full time employment: Posting here.
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Join Date: Jan 2012
Location: Seattle
Posts: 517
Quote:
Originally Posted by bobecuame
Hello everybody, I stumbled upon this site about a month ago and found this site to be very resourceful so I decided to join. First I'd like to thank everybody here for their very informational and sometimes comical posts. I apologize in advance if some of my posts does not make sense. I consider myself a newbie with all these financial and investing stuff.

Some info on myself and wife:
-Both are 35 and have about $100k combined in our 401k style plan at current employers.
-Both have a company pension with about $70k combined.
-No children yet but planning in the near future.
-Hope to retire by 55 y/o (I know I've got a long way and lots more to save)
-Currently contributing about 15% of our incomes to 401k.

As of now, both of our 401k allocations are 100% stocks. (mutual funds) 40% large cap, 25% mid cap, 25% small cap, and 10% international. We are both very risk tolerant and have a long way to go. However, recently I stumbled onto an article stating that every portfolio should have some kind of bond fund and if you don't you are not diversified enough.

So my question is, am I diversified enough? Should I reallocate to 80% stocks and 20% bonds or something of that mixed. Like I said, we are both very risk tolerant and would like the best return for our money. Any suggestions would be greatly appreciated!! Thanks again!!

Btw, our options in our 401k is only those funds I mentioned, and a bond fund, and an inflation protection fund.
Hi there!

DH and I are 33 and 35 and we have similar goals to yours, minus the kid part. Nice to "meet" you!

I'm not sure if there is a "right diversification" since it comes down to risk tolerance and goals. We have about 20% bonds in our portfolio based upon an asset allocation strategy we developed with the advice of our advisor at Fidelity.

SIS
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Old 05-24-2012, 04:55 AM   #3
Dryer sheet wannabe
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Join Date: May 2012
Location: Nevis, West Indies
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Hi, bobecuame. If I were your age I'd be in all stocks, too. In fact, I was but it was mostly the S&P Index. Worked out very well, as I was able to retire at age 56.
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Old 05-25-2012, 02:21 AM   #4
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Join Date: Sep 2010
Location: midwestern city
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When I was your age, I was zero percent in stocks. Haven't changed my AA allocation since then.
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Originally Posted by bobecuame View Post
So my question is, am I diversified enough? Should I reallocate to 80% stocks and 20% bonds or something of that mixed. Like I said, we are both very risk tolerant and would like the best return for our money. Any suggestions would be greatly appreciated!! Thanks again!!
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