401K allocation
Hi Terry, I love listening to you on WGN. I have roughly 250K in my 401K and almost all of it is in bonds. I am turning 56 this year. What would you suggest as the correct asset mix for me? My wife is also the same age as I am and has a little less in her 401K. We are both contribution 15% of our pay in the 401K and also 3% in a Roth IRA. Any advice you can give would be great. Thanks so Much. Do you also do personal consultations
Terry Says
Thanks for your note. I don’t do personal consultations, but I do recommend you get the services of a fee-only FIDUCIARY financial planner — someone who is not trying to sell you something, but will review your entire retirement picture. This is a great time to do that. Find someone you can trust at www.Wealthramp.com.
But I would like to give you a bit of an education on the dangers inherent in bonds.
Please read these two articles to understand what happens to bond prices — either in a recession or when interest rates rise:
https://www.terrysavage.com/beware-of-bonds-3/
https://www.terrysavage.com/beware-of-bonds/
BONDS ARE NOT A SAFE HIDING PLACE! And you missed out on a lot of stock market gains by not being diversified over the past few years.
Any investment allocation decisions should be made in light of the overall plan for your retirement. That’s why I can’t take a stab at a “proper” asset allocation for you.
