Investment Allocation for 2008 - Need Advice?
I need help out determining my correct allocation. I have in the region of 60K in a work 401K plan.Before closing years election I took some gain off the table and invested 20K contained by cash and fixed income. The rest of my portfolio is split evenly amount smal cap, growth, and Foreign Investments.
I have two question. Assuming we get a bounce and the Dow holds at 12K is immediately the time to move money from cash into equities?
My second press is at age 30 what should my target allocation be for 2008. How much in importance, growth, and etc..
Any answer will be appreciated.
Answers: Well you did well timing it but most investors don't fare that resourcefully...
I would move into stocks 100% at this time if I were you, and I did this for my wife's 401k an hour ago.
Up until 50-55 most family should stay in stock equities beside a mix of US and Int'l IMO. Upto 10% bonds would be about right if you're more worried or conservative, but over the long tow you're better in stocks.
Even if Dow holds at 12K its look close to after 5 years of unbelivable rise in the market.
I would build very shielding portfolio
40% Gov bonds
40% Corp bonds
5% Stocks
5% commodities
5% Fx
5% free assets
maybe 2009 will be better but stay out within 2008 its a real take on market and lots people dont know what is it !
For the adjectives dont invest in dow one and only diversified to many countries.
Hi HotSauce,
You really should post on a couple of sites that are staunch to investment questions similar to yours.
One I recommend is www.moneyrec.com, serious site for investors, good proposal and free to users. Spam free.
Also, morningstar.com. free board, but pay for other info.
Just be specific- explain your financial situation and what you currently hold within your portfolio (moneyrec has a space for that) the more info you contribute, the more tailored your answer will be to your specific needs.
Best of Luck to You!
Bunny
I enjoy always be a proponent of a rather conservative investment strategy for 401k accounts. You are conversation a very long possession horizon even for the ripe age of 30. You still have 35 years to budge. You already have a pretty nice chunk contained by your 401k. 20k in fixed income is not too discouraging expecially with the feed whacking interest rates making fixed income more expensive. But over the long term equities will pulsation that. Growth funds can be a real problem during times as presently. They tend to get hammer. Small caps also. A more conservative strategy would be to progress for core funds and some foreign funds. You did not mention whether your foreign was developed or developing.
A modest allocation in my feelings would be 30% large hat core, 20% developed markets foreign, 20% fixed income, 15% foreign developing or smaller amount but certainly some, 15% small sou`wester. Something along those lines.
Instead of reading some good books or fully elucidation what a "good" asset allocation is. you're asking strangers what to do with your retirement money.
Take the answers that you receive & remember.. you don't know the qualifications or motives of those that answer you examine.
Besides, they know nothing give or take a few you.
Good luck with this!
Share deal to sell checked price twice settlement date agreed etc phoned 25 mists later said could not do deal
Answers: Can't really understand the question but if this was over the 'phone then ask them to check their tapes. If you are in uk and this is an authorised broker, make a formal comp[laint. It will soon be sorted out!
This looks like it could be an interesting question. If you have time could you contact http://www.shareworld.co.uk with this question.
haha your sad, get a life!
Will I know how to borrow partially a million dollars contained by 0% interest credit card change advance?
If I can borrow that much for a year, I can more or less live on the 5% interest I can get hold of in some elevated interest savings accounts.I know that's one and only $25,000 in interest, but I'm a frugal guy and can produce it on that.
Answers: Yes.
Do it like the big boys and borrow from Japan !
Best fragment is you'll never have to wage it back rationale Japan is an export economy and they will never angle their "Fed" BOJ rates.
Unfortunately, you need to read the fine print. The brass advantage charge is generally 3% so you are looking at $15,000 within fees at the start. Also, the interest free period is typically 3 months. If you can't remuneration back the entire half-million currency advance, after you are at about 20% interest rate.
Good luck.