I need to rollover a company 401k plan. My total investments counting the 401k plan are 95% equities and 5% bonds. I’m looking at rolling the company 401k 100% into bonds. I would like to go with just one index fund, Fidelity Spartan U.S Bond Index FD. Does that make sense or should I look at more options? After the rollover I will be around 80/20.
Rollover company 401k to Bonds
- Thread starter gbstack
- Start date
ziggy29
Moderator Emeritus
At first I was going to say I thought 100% bonds was a bad idea until I saw this was a small enough part of your portfolio that it only reduces you from 95/5 to 80/20. That would make it a reasonable thing to do, and even more so if some of the equities are in taxable brokerage accounts. If you have a mixture of taxable and tax-deferred investments, and you have a mixture of stocks and bonds, it's better to have the (taxable) bonds in the tax-deferred accounts and the equities in taxable accounts.
