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M
401k allocation recommendations
I'm 35 and started saving into my 401k two yrs ago. My company uses Financial Engines for the 401k and its automatic recommendation tool is telling me to increase and decrease the amount I hold in certain funds. For example it's telling me to increase my bond holding from 5% to 11%, and decrease my large cap stock holding from 45% to 35% and so forth. I think it's taking my age and other factors into the recommendations (no kids, not married btw). Do I follow this automatic suggestion or keep it as it is?
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P
Did it ask you questions to assess your risk? I have Fidelity and they have that to help determine a good allocation. I ask because my opinion is that at your age bonds are kinda pointless.
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M
@Pat906 It only asked me my current age + when I plan to retire (?). That was it. Makes me wonder.
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Finny Dolphin
You may find this lesson relevant and helpful.
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J
It's probably a fine and appropriate allocation but it will come down to how you want to invest it and what you feel comfortable investing in. I agree with Pat that have a higher percentage in bonds isn't a great choice at your age but again it comes down to your risk assessment or how much loss you can take.
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Finny Dolphin
You may find this lesson relevant and helpful.
Click on it below and a new tab will open and take you directly to the lesson.
L
@Jack449 I agree with this!
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