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My 401k is 100% Hertz right now
Bold move cotton let's see if it pays off for him
In general, it’s best to have highest expected return in tax advantages accounts. So even if you’re going to do a 50-50 split of stocks and bonds, stocks should be in a (Roth) 401k or IRA to maximize tax savings.
That being said, that’s a very very conservative portfolio for a 27yo. I’m the same age and closer to 90-10 equities vs. bonds.
Pro
I’m leaving mine as 100% equities
If you believe eventually the market/economy will recover, staying the course is the better option unless you can almost perfectly predict the bottom, which most can’t do. Also assuming you have a decade plus until retirement of course
Rising Star
How old are you? Also, I generally wouldn't try to time the market. If my existing allocation of bonds becomes over weight, I would just rebalance so it buy more stocks at cheaper prices
Waaaay too high for 27. It’s a long game.
99%
Pro
Ben graham reccomends 25% bonds min to average investors. If you start at 2000 equity and bonds have performed comparably for total returns.
Pro
75 us stock
25 bond
When stocks fall, which they will. I buy more stock
Get out of short term
Agree that short term isn’t helping.
That seems really conservative to me for a 27yo. I would aim for 30% bonds at a maximum with the rest in equities.
Remember, whatever ups and downs are happening in the market now don’t really matter on a daily basis. Your 401k is for 40 years from now. There will be so many more market fluctuations between now and then. Just invest for the long term horizon and don’t worry about the daily news.
Pro
Over the past 20 years stocks and bonds have returns similar returns you realize this right? Starting at 2000
Rising Star
At 27, I would recommend 85% to 90% stock allocation and the remainder total bond fund.
20 to 25 % allocation to int'l stocks within your stock allocation