I need help determining my correct allocation. I have about 60K in a work 401K plan.
Before last years election I took some gains off the table and invested 20K in cash and fixed income. The rest of my portfolio is split evenly amount smal caps, growth, and Foreign Investments.
I have two questions. Assuming we get a bounce and the Dow holds at 12K is now the time to move money from cash into equities?
My second question is at age 30 what should my target allocation be for 2008. How much in value, growth, and etc..
Any answer will be appreciated.
Well you did well timing it but most investors don’t fare that well…
I would move into stocks 100% at this time if I were you, and I did this for my wife’s 401k an hour ago.
Up until 50-55 most people should stay in stock equities with a mix of US and Int’l IMO. Upto 10% bonds would be about right if you’re more worried or conservative, but over the long haul you’re better in stocks.