I will be turning 50 in June, wondering if I should change how my 401K is split up. I do not owe anything right now, house and car are both paid off,m no credit card bills, and I do not foresee needing to buy a vehicle soon in the future. I do not have much in personal savings only about $2000, but do have 250,000 in my 40K and put in the amount personally that my company will match. My husband had $36,000 in savings, but that is his personally from an insurance settlement. Right now my account is divided as follows: balanced fund 20%, fixed income fund 16%, stock fund 8%, Vangarud extended market index 40% and Vanguard Intermediate Term Bond Index 16%. Can you be of any help to guide me?
I appreciate the opportunity to help!
It's good that your 401k is balanced at this point and that is the right way to go. I really depends on what type of products you have available to invest within your 401k. The Vanguard Extended Market index is has large exposure to small and mid-cap stocks and are much more volatile. Its probably not good to have such a large percentage in that fund at this time. The stock fund could be a bit higher percentage to offset. The Bond fund is also one that I personally would shy away from. There is too much uncertainty with the economy and the falling valuation of the dollar. Also it depends on what the bonds are tied to as well. It's best to be more conservative right now and have more guaranteed income and balanced funds. Also, its not a bad idea to get more into international stock funds as well. Hope this helps...
Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.