Ask Terry Questions Core holding S&P 500?

Core holding S&P 500?

By Terry Savage on April 03, 2015 | Investments

Hi Terry, I’m might have missed your answer, but you had mentioned making the S&P Index Fund a core holding in ones mutual fund portfolio. What percentage are we talking, compared to other funds I might hold. I am 60 years old, and will be retiring in 5 years.

Terry Says:   I mentioned the S&P 500 as a “core” holding because it is a “proxy” for the whole stock market, and easy to reinvest dividends — which have, in the past, accounted for nearly 40% of overall total stock market return.  But the percentages depend on your entire financial situation — your personal goals, total assets, risk tolerance, time horizon.  For that kind of advice go to Fidelity or Vanguard or T. Rowe Price and let them help advise you on the appropriate percentages.



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