What’s Wrong with this 401k Asset Allocation?
, on November 14, 2007
Recently I spoke to a friend about his retirement savings, and we ended up looking at his 401k portfolio. Although he isn’t able to contribute the maximum amount each year, he contributes enough to take full advantage of the company match. However, when I looked at his investment asset allocation, I was horrified. This was what I saw:
This friend is in his early 30s and this is his current 401k allocation:
- 25% Target Retirement Fund 2020
- 25% Bond Fund
- 25% International Equity Fund
- 25% Company Stock Fund
Can you point out some of things that are wrong? I wonder how many people are religious about contributing to their 401k plans, but make poor choices about investing that money.
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About the AuthorPinyo
is the owner of Moolanomy Personal Finance
and an entrepreneur with over 20 years of business experience. He has a strong appreciation for business management, investing, and wealth building. He has written for many online publications, including American Express and U.S. News.
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