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Posted: 2/18/2017 6:02:48 AM EDT
[#1]
It might depend on how close to retirement you are for how aggressive you want to be. If you can make 11% you should try to do that for as long as possible I'd think.
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Posted: 2/18/2017 6:06:35 AM EDT
[#2]
Quote HistoryQuoted:
It might depend on how close to retirement you are for how aggressive you want to be. If you can make 11% you should try to do that for as long as possible I'd think. I turn 50 this year...I need to try to get at least another decade from this job. Currently Im putting in 12% into some aggressive funds (trying to make up for lost time) and was going to increase that to 15% when this years salary increase comes through. Maybe it's time to pull back and put money into more conservative areas until the market settles down ? |
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Posted: 2/18/2017 6:08:04 AM EDT
[#3]
So the market is doing well and you want to throttle your gains?
This makes no sense. Enjoy the ride. |
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Posted: 2/18/2017 6:10:05 AM EDT
[#4]
Quote HistoryQuoted:
So the market is doing well and you want to throttle your gains? This makes no sense. Enjoy the ride. I never said I was a genius at this.. 
I am just worried that by continuing to put money into funds that are now performing better than they have in years, that I am setting myself up for future losses if this trend reverses. |
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Posted: 2/18/2017 6:20:18 AM EDT
[#5]
You're trying to time the market.
Anyone who says they can time the market is lying to you. You may protect yourself form losses, but you may also miss out on more gains. Your call, no one else's. Asset allocation is another question. I personally wouldn't have all my eggs in the equities basket, and don't. |
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Posted: 2/18/2017 6:29:49 AM EDT
[#6]
If President Trump gets half of what he wants (and Ryan says they will do), the market is just beginning to rally.
Are you still investing (for 5ish years or longer) or are you living off of your investments? If you don't put enough in equities now (especially with real interest rates <0) you aren't going to have enough to put into fixed income when it is time to live off of them. No guts, no glory...nor $. |
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Posted: 2/18/2017 6:32:59 AM EDT
[#7]
Quote HistoryQuoted:
If President Trump gets half of what he wants (and Ryan says they will do), the market is just beginning to rally. Are you still investing (for 5ish years or longer) or are you living off of your investments? If you don't put enough in equities now (especially with real interest rates <0) you aren't going to have enough to put into fixed income when it is time to live off of them. No guts, no glory...nor $. Still investing...as stated previously Im in for another decade at least. Just to be clear, by equities you essentially mean stock funds right? |
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Posted: 2/18/2017 6:38:27 AM EDT
[#8]
My 401k is doing so well it's scary honestly. I'm waiting for the crash where I lose half of it.
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Posted: 2/18/2017 6:42:06 AM EDT
[#9]
Quote HistoryQuoted:
I never said I was a genius at this..
I am just worried that by continuing to put money into funds that are now performing better than they have in years, that I am setting myself up for future losses if this trend reverses. Quote HistoryQuoted:
Quoted:
So the market is doing well and you want to throttle your gains? This makes no sense. Enjoy the ride. I never said I was a genius at this..
I am just worried that by continuing to put money into funds that are now performing better than they have in years, that I am setting myself up for future losses if this trend reverses. Two things to consider: 1. There are those who have been sitting on the sidelines waiting for the proverbial 10% pullback before they jump in...and they've been doing so for years. Think of the gains they've missed. 2. Sooner or later the market is going to go down...consider it a buying opportunity. |
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Posted: 2/18/2017 6:52:01 AM EDT
[#10]
Quote HistoryQuoted:
I never said I was a genius at this..
I am just worried that by continuing to put money into funds that are now performing better than they have in years, that I am setting myself up for future losses if this trend reverses. You are being smart thinking about it. Because nothing lasts forever at some point it will go down, then back up. For someone young it might be enough time to recover, for someone depending on that money for retirement, maybe not. That's the whole risk vs reward thing
I think the smartest thing to do would be to have a goal for retirement. Then what would it take to reach that goal? If you can reach it with less risk that's a good thing. If you can reach it and still have a little "play" money for something with more potential reward but if it goes down you're not depending on it, even better. |
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Posted: 2/18/2017 7:05:01 AM EDT
[#11]
Quote HistoryQuoted:
Still investing...as stated previously Im in for another decade at least. Just to be clear, by equities you essentially mean stock funds right? Quote HistoryQuoted:
Quoted:
If President Trump gets half of what he wants (and Ryan says they will do), the market is just beginning to rally. Are you still investing (for 5ish years or longer) or are you living off of your investments? If you don't put enough in equities now (especially with real interest rates <0) you aren't going to have enough to put into fixed income when it is time to live off of them. No guts, no glory...nor $. Still investing...as stated previously Im in for another decade at least. Just to be clear, by equities you essentially mean stock funds right? My bad: I missed one of your subsequent posts while I was typing. Yes, equities = stock; equity funds = stock funds. Bohr_Adam brings up a good point: asset allocation. Establishing a % of stocks (domestic, foreign (developed), emerging markets, etc.) & bonds in your portfolio and then more or less "blindly" (maybe religiously and/or periodically are better terms) maintaining that %. Asset allocation is also, BTW, essentially what your target retirement date fund is doing: something like more or less your age is the % they put in bonds, the rest in equities. As you get older, they shift more of your $ to bonds which, at least in theory, should be "safer". |
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Posted: 2/18/2017 8:42:52 AM EDT
[#12]
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Posted: 2/18/2017 8:43:24 AM EDT
[#13]
If this was a regular taxable account where you were just investing extra money, maybe it would make sense to sell to lock in some gains if you thought the market was high (buy low, sell high) and you wanted to actually use the money in the near future. As others have said, timing this is really not possible -- after all Trump being elected was supposed to result in a market crash according to the experts, and the exact opposite happened (and who knows what will happen in the future).
But a 401K should be allocated based on how close you are to retirement (i.e. still based on when you will need the money), not based on current market sentiment. If you still have time to weather a downturn and rebound, you should stay invested in the stock market. Frankly, even when retired you should have some money in the market because you still have a decades long investing horizon for some portion of your investments. Like if you have $200,000 and retire at 65 and plan to live on that, you have to plan that you'll live at least 20 years. |
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Posted: 2/18/2017 9:00:15 AM EDT
[#14]
60 here, putting 26% in,plus a 4% match. Maxing it out yearly. $24500. My plan is to go to 67 and call it good, hoping for the best.
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Posted: 2/18/2017 9:08:24 AM EDT
[#15]
You can't time the market. A better option would be to figure out an assett allocation that works for you then keep investing and ignore the noise.
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Posted: 2/18/2017 9:09:26 AM EDT
[#16]
Quote HistoryQuoted:
My 401k is doing so well it's scary honestly. I'm waiting for the crash where I lose half of it. Hey, it just means we live more frugally if it happens just before retirement.
My 401k looks pretty amazing as well. 
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Posted: 2/18/2017 9:10:04 AM EDT
[#17]
I continue to contribute the maximum. It's called dollar cost averaging.
I wouldn't reduce your contribution if I were you. |
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Posted: 2/18/2017 9:11:17 AM EDT
[#18]
Quote HistoryQuoted:
You can't time the market. A better option would be to figure out an assett allocation that works for you then keep investing and ignore the noise. Amen. |
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Posted: 2/18/2017 9:19:20 AM EDT
[#19]
I have half my 401k money in the Fidelity general income fund and the other half in the 2035 target retirement fund. I realize this is a shitty plan, and why I'm only up 2%. At this point I seriously want to say fuck it and pull half my money out and start flipping houses or something. What the hell can I do to make better gains but still stay relatively safe?
38 years old, only been seriously contributing for 5 years, and next week I'll finally hit the $100k mark and also hit my $18k threshhold for 2017. Plan to add another $11k via 2016 and 2017 TIRA limits. Where the fuck should I be spreading this money at on Fidelity? |
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Posted: 2/18/2017 9:19:20 AM EDT
[#20]
The problem I have with the stock market right now is it is all built up on HOPE and DREAMS. Companies aren't making enough to pay real dividends and people just buy on the speculation of capital appreciation. Yes, the corporate leaders have incentives for their stock to increase so they can use their options, but afterwards things right themselves, companies collapse, merge, etc.
I don't expect to retire for 30 years and still put $12k into my 401k just like alot of people my age, but am really starting to wonder how sustainable this path is. That money is only about $4k per year equivalent if I didn't meet my companies match... no way could I park it anywhere else and get 100% returns without unrealistic risk. The game feels rigged and I'm being forced to play by others rules. One day I'm expecting to be told these funds won't be accessible until age 70 without massive tax penalties, just to fuck over my generation and keep retired pensioners afloat. |
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Posted: 2/18/2017 9:22:25 AM EDT
[#21]
Quote HistoryQuoted:
I have half my 401k money in the Fidelity general income fund and the other half in the 2035 target retirement fund. I realize this is a shitty plan, and why I'm only up 2%. At this point I seriously want to say fuck it and pull half my money out and start flipping houses or something. What the hell can I do to make better gains but still stay relatively safe? 38 years old, only been seriously contributing for 5 years, and next week I'll finally hit the $100k mark and also hit my $18k threshhold for 2017. Plan to add another $11k via 2016 and 2017 TIRA limits. Where the fuck should I be spreading this money at on Fidelity? Read Bogleheads and set up a simple 3 fund portfolio consisting of only index funds (total market, total international market, total bond market). Adjust allocation based on age and time to retirement. |
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Posted: 2/18/2017 9:29:22 AM EDT
[#22]
I would aim to keep investing the max 18k per year.
As others have mentioned, if your worried about the risk you might look at bond funds or dividend paying stock funds. |
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Posted: 2/18/2017 9:42:23 AM EDT
[#23]
Quote HistoryQuoted:
I turn 50 this year...I need to try to get at least another decade from this job. Currently Im putting in 12% into some aggressive funds (trying to make up for lost time) and was going to increase that to 15% when this years salary increase comes through. Maybe it's time to pull back and put money into more conservative areas until the market settles down ? Quote HistoryQuoted:
I turn 50 this year...I need to try to get at least another decade from this job. Currently Im putting in 12% into some aggressive funds (trying to make up for lost time) and was going to increase that to 15% when this years salary increase comes through. Maybe it's time to pull back and put money into more conservative areas until the market settles down ? Quoted:
The problem I have with the stock market right now is it is all built up on HOPE and DREAMS. Companies aren't making enough to pay real dividends and people just buy on the speculation of capital appreciation. Yes, the corporate leaders have incentives for their stock to increase so they can use their options, but afterwards things right themselves, companies collapse, merge, etc. I don't expect to retire for 30 years and still put $12k into my 401k just like alot of people my age, but am really starting to wonder how sustainable this path is. That money is only about $4k per year equivalent if I didn't meet my companies match... no way could I park it anywhere else and get 100% returns without unrealistic risk. The game feels rigged and I'm being forced to play by others rules. One day I'm expecting to be told these funds won't be accessible until age 70 without massive tax penalties, just to fuck over my generation and keep retired pensioners afloat. |
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Posted: 2/18/2017 10:05:16 AM EDT
[#24]
Quote HistoryQuoted:
The problem I have with the stock market right now is it is all built up on HOPE and DREAMS. Companies aren't making enough to pay real dividends and people just buy on the speculation of capital appreciation. Yes, the corporate leaders have incentives for their stock to increase so they can use their options, but afterwards things right themselves, companies collapse, merge, etc. I don't expect to retire for 30 years and still put $12k into my 401k just like alot of people my age, but am really starting to wonder how sustainable this path is. That money is only about $4k per year equivalent if I didn't meet my companies match... no way could I park it anywhere else and get 100% returns without unrealistic risk. The game feels rigged and I'm being forced to play by others rules. One day I'm expecting to be told these funds won't be accessible until age 70 without massive tax penalties, just to fuck over my generation and keep retired pensioners afloat. Our system is designed for booms and busts. Don't make decisions based on feelings. We have 100+ years of data. The market always goes up with hiccups along the way. People that try to time this and change their allocations or reduce their contributions usually do significant damage. |
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Posted: 2/18/2017 10:31:15 AM EDT
[#25]
Quote HistoryQuoted:
You're trying to time the market. Anyone who says they can time the market is lying to you. You may protect yourself form losses, but you may also miss out on more gains. Your call, no one else's. Asset allocation is another question. I personally wouldn't have all my eggs in the equities basket, and don't. |
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Posted: 2/18/2017 10:32:19 AM EDT
[#26]
Quote HistoryQuoted:
So the market is doing well and you want to throttle your gains? This makes no sense. Enjoy the ride. |
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Posted: 2/18/2017 10:43:04 AM EDT
[#27]
Quote HistoryQuoted:
Our system is designed for booms and busts. Don't make decisions based on feelings. We have 100+ years of data. The market always goes up with hiccups along the way. People that try to time this and change their allocations or reduce their contributions usually do significant damage. Quote HistoryQuoted:
Quoted:
The problem I have with the stock market right now is it is all built up on HOPE and DREAMS. Companies aren't making enough to pay real dividends and people just buy on the speculation of capital appreciation. Yes, the corporate leaders have incentives for their stock to increase so they can use their options, but afterwards things right themselves, companies collapse, merge, etc. I don't expect to retire for 30 years and still put $12k into my 401k just like alot of people my age, but am really starting to wonder how sustainable this path is. That money is only about $4k per year equivalent if I didn't meet my companies match... no way could I park it anywhere else and get 100% returns without unrealistic risk. The game feels rigged and I'm being forced to play by others rules. One day I'm expecting to be told these funds won't be accessible until age 70 without massive tax penalties, just to fuck over my generation and keep retired pensioners afloat. Our system is designed for booms and busts. Don't make decisions based on feelings. We have 100+ years of data. The market always goes up with hiccups along the way. People that try to time this and change their allocations or reduce their contributions usually do significant damage. |
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Posted: 2/18/2017 10:52:44 AM EDT
[#28]
So the market is reaching peak pricing so you want to buy more?
Sounds kind of irrational when I say it that way huh? This is very common market psychology where people get market fever when it's hitting highs and is in the news so they buy and get fearful when it's low/lowering and sell. Buying high and selling low is a great way to lose money. I buy the same dollar amount of stock month-after-month year-after-year with payroll deduction automatically. That means when stocks are on sale I end up buying more and when they're expensive I buy less dollar/cost averaging. I will supplement those automatic purchases by investing my California paycheck bonus trying to pick a time when stocks are on sale but 50 or 100 points on the Dow or S&P aren't enough to for me to worry about. PS: At age 50 you ought to be wildly diversified buying into the whole market rather than the far riskier picking even a handful of stock. The smallest ETF I own holds 30 different stocks ... and that's got very little of my total portfolio invested in it. If you insist on playing the market stake off the amount you want to lose, I mean the amount you can lose, and play with it. The risk of that one individual stock is reduced when you buy 30, 150, or 500 companies stocks. |
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Posted: 2/18/2017 10:57:43 AM EDT
[#29]
Quote HistoryQuoted:
12% of your pay or 12% of the contribution? I would look at overall asset allocation. You sound about my age. We came of age during 2 bubbles. To me, it looks like another one in the making. I am still contributing to mine but am more conservatively allocated. I will reallocate with the dry powder once the thinning has happened. I'm mid-thirties and make low six-figures. A few guys I work with making more are maxing out their 401ks and then putting in another $10k after tax on the basis they'll be able to pull those contributions first tax free when they retire. Seems like a lot of trust that the greedy politicians won't screw everyone over when times get tough in 20-30 years (debt default, war, who knows?). I'm planning to keep the company match, but putting my extra money into a Share builder account with no strings attached. |
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Posted: 2/18/2017 11:15:33 AM EDT
[#30]
Quote HistoryQuoted:
You're trying to time the market. Anyone who says they can time the market is lying to you. You may protect yourself form losses, but you may also miss out on more gains. Your call, no one else's. Asset allocation is another question. I personally wouldn't have all my eggs in the equities basket, and don't. This. Hire a professional to give you advice based on facts and expertise, without emotional ties to the money. Everyone has emotions about money, which many times leads to bad decisions. There are studies that even say Certified Financial Planners underperform their clients because of emotions they have about their own money. Hire a professional with credentials (CFP, ChFC) and let them help you. |
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Posted: 2/18/2017 11:21:23 AM EDT
[#31]
1) Take all your money out.
2) Fly to Vegas. 3) Put half on Red and half on Black, so you're guaranteed to win either way. 4) Profit!!! |
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Posted: 2/18/2017 11:22:12 AM EDT
[#32]
Op are your fees low? Because that's important
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Posted: 2/18/2017 11:32:41 AM EDT
[#33]
Financial advice threads in GD are right up there with divorce advice threads.
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Posted: 2/18/2017 11:43:30 AM EDT
[#34]
What is rehypothecation?
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Posted: 2/18/2017 11:45:44 AM EDT
[#35]
Quote HistoryQuoted:
I have half my 401k money in the Fidelity general income fund and the other half in the 2035 target retirement fund. I realize this is a shitty plan, and why I'm only up 2%. At this point I seriously want to say fuck it and pull half my money out and start flipping houses or something. What the hell can I do to make better gains but still stay relatively safe? 38 years old, only been seriously contributing for 5 years, and next week I'll finally hit the $100k mark and also hit my $18k threshhold for 2017. Plan to add another $11k via 2016 and 2017 TIRA limits. Where the fuck should I be spreading this money at on Fidelity? I have.Fidelity. Their target funds SUCK. Go look at the 10 year return on that fund..: it is terrible. I do 30% large cap growth, 20% small, 20% bond index, 10% emerging markets, 20% small cap. And keep rebalancing. |
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Posted: 2/18/2017 11:48:47 AM EDT
[#36]
Quote HistoryQuoted:
I'm mid-thirties and make low six-figures. A few guys I work with making more are maxing out their 401ks and then putting in another $10k after tax on the basis they'll be able to pull those contributions first tax free when they retire. Seems like a lot of trust that the greedy politicians won't screw everyone over when times get tough in 20-30 years (debt default, war, who knows?). I'm planning to keep the company match, but putting my extra money into a Share builder account with no strings attached. |
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Posted: 2/18/2017 11:49:53 AM EDT
[#37]
Quote HistoryQuoted:
I have.Fidelity. Their target funds SUCK. Go look at the 10 year return on that fund..: it is terrible. I do 30% large cap growth, 20% small, 20% bond index, 10% emerging markets, 20% small cap. And keep rebalancing. Quote HistoryQuoted:
Quoted:
I have half my 401k money in the Fidelity general income fund and the other half in the 2035 target retirement fund. I realize this is a shitty plan, and why I'm only up 2%. At this point I seriously want to say fuck it and pull half my money out and start flipping houses or something. What the hell can I do to make better gains but still stay relatively safe? 38 years old, only been seriously contributing for 5 years, and next week I'll finally hit the $100k mark and also hit my $18k threshhold for 2017. Plan to add another $11k via 2016 and 2017 TIRA limits. Where the fuck should I be spreading this money at on Fidelity? I have.Fidelity. Their target funds SUCK. Go look at the 10 year return on that fund..: it is terrible. I do 30% large cap growth, 20% small, 20% bond index, 10% emerging markets, 20% small cap. And keep rebalancing. 
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Posted: 2/18/2017 11:52:32 AM EDT
[#38]
Quote HistoryQuoted:
Vanguard Target funds don't, below is the 24 month return rate on my Vanguard Target Roth
http://i.imgur.com/oUUmxqH.png Quote HistoryQuoted:
Quoted:
Quoted:
I have half my 401k money in the Fidelity general income fund and the other half in the 2035 target retirement fund. I realize this is a shitty plan, and why I'm only up 2%. At this point I seriously want to say fuck it and pull half my money out and start flipping houses or something. What the hell can I do to make better gains but still stay relatively safe? 38 years old, only been seriously contributing for 5 years, and next week I'll finally hit the $100k mark and also hit my $18k threshhold for 2017. Plan to add another $11k via 2016 and 2017 TIRA limits. Where the fuck should I be spreading this money at on Fidelity? I have.Fidelity. Their target funds SUCK. Go look at the 10 year return on that fund..: it is terrible. I do 30% large cap growth, 20% small, 20% bond index, 10% emerging markets, 20% small cap. And keep rebalancing.
http://i.imgur.com/oUUmxqH.png What is the ticker of that fund? Or just the name? |
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Posted: 2/18/2017 11:53:07 AM EDT
[#39]
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This. Hire a professional to give you advice based on facts and expertise, without emotional ties to the money. Everyone has emotions about money, which many times leads to bad decisions. There are studies that even say Certified Financial Planners underperform their clients because of emotions they have about their own money. Hire a professional with credentials (CFP, ChFC) and let them help you. I respectfully disagree with hiring a professional. They leech off your gains. Low cost index funds without professional help are an easy way to diversify while keeping costs low and being tax efficient. |
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Posted: 2/18/2017 11:54:53 AM EDT
[#40]
DOw 50,000 guaranteed baby
dont miss the train ride! |
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Posted: 2/18/2017 11:58:30 AM EDT
[#41]
Quote HistoryQuoted:
So the market is doing well and you want to throttle your gains? This makes no sense. Enjoy the ride. Gains are not realized unless you sell..... |
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Posted: 2/18/2017 12:01:05 PM EDT
[#42]
Quote HistoryQuoted:
I respectfully disagree with hiring a professional. They leech off your gains. Low cost index funds without professional help are an easy way to diversify while keeping costs low and being tax efficient. Quote HistoryQuoted:
Quoted:
This. Hire a professional to give you advice based on facts and expertise, without emotional ties to the money. Everyone has emotions about money, which many times leads to bad decisions. There are studies that even say Certified Financial Planners underperform their clients because of emotions they have about their own money. Hire a professional with credentials (CFP, ChFC) and let them help you. I respectfully disagree with hiring a professional. They leech off your gains. Low cost index funds without professional help are an easy way to diversify while keeping costs low and being tax efficient. I respectfully disagree for a few reasons. Number 1 is that a true professional does financial planning....something you do not get with a fund. By that I mean tailored advice to accomplish your goals, and protect against setbacks. There is SO much more than just investment picks in financial planning. You would probably be amazed at the areas true planners can address. Second, fees and taxes are just parts of the equation, with fees being the most overrated by far. A good professional will keep fees low. The people that lead with fees as a reason not to work with a pro are being "penny wise, pound foolish". As an example, look at how Vanguard stacks up to other fund families. I REALLY like Vanguard, but they are not always the best. As far as leeching off of gains....do you feel the same way about paying a CPA for doing your taxes? A lawyer for drafting a will? A doctor for diagnosing an illness? Do you do all of that yourself? Third, look up research on the emotional part I posted above. If you have a mindset that you can outperform the market, or do your own allocation, or want to pinch pennies with fees, you are probably exactly the type of person who needs to take emotions out of the equation. Just my humble opinion. Full disclosure, I'm a CFP and have been in financial services in varying capacities for 9 years. |
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Posted: 2/18/2017 12:07:25 PM EDT
[#43]
Quote HistoryQuoted:
I respectfully disagree for a few reasons. Number 1 is that a true professional does financial planning....something you do not get with a fund. By that I mean tailored advice to accomplish your goals, and protect against setbacks. There is SO much more than just investment picks in financial planning. You would probably be amazed at the areas true planners can address. Second, fees and taxes are just parts of the equation, with fees being the most overrated by far. A good professional will keep fees low. The people that lead with fees as a reason not to work with a pro are being "penny wise, pound foolish". As an example, look at how Vanguard stacks up to other fund families. I REALLY like Vanguard, but they are not always the best. As far as leeching off of gains....do you feel the same way about paying a CPA for doing your taxes? A lawyer for drafting a will? A doctor for diagnosing an illness? Do you do all of that yourself? Third, look up research on the emotional part I posted above. If you have a mindset that you can outperform the market, or do your own allocation, or want to pinch pennies with fees, you are probably exactly the type of person who needs to take emotions out of the equation. Just my humble opinion. Full disclosure, I'm a CFP and have been in financial services in varying capacities for 9 years. Thanks for the clarification and disclosure. I agree in the context you provided. I was disagreeing in the context of people thinking they're going to beat the market with a professional. |
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Posted: 2/18/2017 12:10:42 PM EDT
[#44]
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Where the fuck should I be spreading this money at on Fidelity? |
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Posted: 2/18/2017 12:21:36 PM EDT
[#45]
I've got a likely stupid question...
Why should I not put all of my 401k money into the small cap stock fund or the s&p fund? The 10 year average return rate of these two funds are almost double the return rate of the diversified funds. I won't be retiring for 20 years. |
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Posted: 2/18/2017 12:28:32 PM EDT
[#46]
Quote HistoryQuoted:
I've got a likely stupid question... Why should I not put all of my 401k money into the small cap stock fund or the s&p fund? The 10 year average return rate of these two funds are almost double the return rate of the diversified funds. I won't be retiring for 20 years. |
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Posted: 2/18/2017 12:31:17 PM EDT
[#47]
Quote HistoryQuoted:
I've got a likely stupid question... Why should I not put all of my 401k money into the small cap stock fund or the s&p fund? The 10 year average return rate of these two funds are almost double the return rate of the diversified funds. I won't be retiring for 20 years. Not a stupid question. Two thoughts: 1) You can get more aggressive with a longer a time horizon. 2) Small cap funds might have been a top performer for the past 10 years but they aren't necessarily the top performer over EVERY 10 year period. Different fund styles come and go on the leader board all the time. There is no guarantee that the same small cap fund will outperform the alternatives over the next 10 years. |
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Posted: 2/18/2017 12:39:56 PM EDT
[#48]
This thread is all about asset allocation.
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Posted: 2/18/2017 12:44:35 PM EDT
[#49]
Quote HistoryQuoted:
I've got a likely stupid question... Why should I not put all of my 401k money into the small cap stock fund or the s&p fund? The 10 year average return rate of these two funds are almost double the return rate of the diversified funds. I won't be retiring for 20 years. 
Here is inflation adjusted total return 
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Posted: 2/18/2017 12:51:34 PM EDT
[#50]
Quote HistoryQuote HistoryQuoted:
Quoted:
I've got a likely stupid question... Why should I not put all of my 401k money into the small cap stock fund or the s&p fund? The 10 year average return rate of these two funds are almost double the return rate of the diversified funds. I won't be retiring for 20 years. http://i.imgur.com/N7C6Loo.png if you bought into the sp500 regularly, like $10000 at the end of every year, wouldnt you come out way ahead at the end of that time period? if you only bought once at the beginning, and never invested again, sure you would not make much |
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