Made a big change to my investment mix this week.
I am 34 years old (turn 35 this summer). I have been 100% in stocks up to now. I have made the following changes to my asset allocation:
401K
38% - S&P 500 Index Fund
13% - Midcap Index Fund
7% - Small Cap Index Fund
7% - International Index Fund (MSCI EAFE)
35% - Guaranteed Fund through Employer (pays 5.3%)
Roth IRA's (Vanguard)
65% - Total Stock Market Index Fund
35% - Short Term Corporate Bond Fund
I have taken these steps to reduce the volatility in my portfolio. I plan on increasing my exposure to bonds by 1% each year (age 40 = 40% in bonds). I would appreciate any thoughts on this asset allocation.
I started investing for FIRE at age 23. I will need an overall return in the 8-9% range to retire early. Thanks..
I am 34 years old (turn 35 this summer). I have been 100% in stocks up to now. I have made the following changes to my asset allocation:
401K
38% - S&P 500 Index Fund
13% - Midcap Index Fund
7% - Small Cap Index Fund
7% - International Index Fund (MSCI EAFE)
35% - Guaranteed Fund through Employer (pays 5.3%)
Roth IRA's (Vanguard)
65% - Total Stock Market Index Fund
35% - Short Term Corporate Bond Fund
I have taken these steps to reduce the volatility in my portfolio. I plan on increasing my exposure to bonds by 1% each year (age 40 = 40% in bonds). I would appreciate any thoughts on this asset allocation.
I started investing for FIRE at age 23. I will need an overall return in the 8-9% range to retire early. Thanks..