Alrighty, in the spirit of the times, I’ll let “the community” (Did you know you’d stepped into a community? Oops, be sure to wipe your shoes!) participate in a historically closed process.
I have a 401k account. Not a ton of money – so little in fact that it isn’t gauche to talk about it in a blog, believe me.
Currently it’s allocated like this, ordered – at least according to traditional wisdom- from least risky to most risky:
- Bonds 17%
- Large cap growth (which probably really just means “large cap”) 28%
- Small cap / speciality 34%
- Global 20%
New money goes in allocated 20/30/30/20 percent. [Let’s pause here to let various wags say things like “What is this, an old person’s porfolio from 1999?” or “Is this how you play chess?” or whatever. Okay, moving on.]
My current inclination is to take the money out of the stock market ASAP, at least domestically. This is largely because of my doom-and-gloom reading (see previous post on economic blogs – I’m reading bears mostly).
Let’s imagine this is your play money. What would YOU do, and why?