4 Responses to “What’s a good 401K allocation mix for these current times for a 45 year old person?”

  1. jeff410 says:

    You should not take the current economic situation into consideration. A 401k is a long term investment. You still have about 20 years until retirement. Dont invest for the long term, with a short term view. You should have about the same percentage as your age invested in bonds, and the rest in equities, with about 20 percent or so in international equities. But the percentages depend on your other assets, other income you will have at retirement and your risk tolerance.
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  2. engineer50 says:

    I would put about 40% into domestic, 30% foreign and 30% investment-grade bonds.
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  3. Colin says:

    I agree with jeff with one caveat … adjusted your bond allocation your personal situation and risk tolerance. If you’re not very risk tolerant you may want to allocate slightly more to bonds/stable value… If you’re on track for retirement and you’re comfortable with 60-65% stock, go with that. If you’re not or you’re comfortable allocating more aggressively adjust upward or downward slightly (maybe +/- 5-10%)..
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  4. Andy says:

    I’ll agree with the long view sentiment but I’d say you shouldn’t go over 10% in bond funds or you’re leaving money on the table for when you retire.

    People who reach retirement have a 50/50 chance of hitting 90… so even at 65 you’ll still want to be at least half in stock funds.
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