[Janna]

For those who manage their own 401ks in Fidelity, what is your recommended allocation for index funds?

I am switching from target date fund to self managing with goal of 90% stocks and 10% bonds

I’m thinking –
FSKAX – 80%
FZILX -10% (or should I do FTIHX)
FXNAX – 7%
FBIIX – 3%

Any feedback?

[Sonja]

Chose an S & P 500 index. No bonds.

[Frank]

Why do you think you need any bonds? Are you at least half way to FI?
The choice of index funds is honestly not that important so long as they are low cost and you are committed to sticking with them and not jumping around in the future.

[Amy]

If you’re adding bonds for protection from volatility, 10% bonds isn’t enough to provide meaningful protection. Think of it like ingredients in a recipe.

If you put too little baking powder in your cake recipe, the cake won’t rise.

If you’re many years away from retiring, you really don’t need bonds. Look at adding bonds when you’re within 10 years of retiring.

[Mark]

The 7% and 3% isn’t enough to really make a difference

[Author]

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