invest4 provided some very good information, but I wouldn’t recommend you be 100% in stocks.
Being in your late 20s, I would recommend 100% stocks in your retirement accounts. Once you are 15-20 years away from retirement, you can start moving to your fixed income retirement asset allocation.
You need to have some fixed income allocation at any age for your emergency fund, major house repair, saving for a new car, putting money away for vacations, etc. You could sell some stock mutual fund holdings to get needed cash, but if needed during a bear market or market correction, having to do so could be financially & emotionally unsettling.
I recommend to my kids, that are in their early/mid 30s (yes they asked for my opinion), that they have at least 5%-10% of their financial assets in fixed income (MM fund, savings, short term bond funds, etc) located in their taxable accounts (brokerage, credit union, etc) to cover some of the immediate/short term spending situations mentioned above.
BTW, VTI (Vanguard Total Stock Market ETF) was up about 50% from 2 September 2022 through 25 October 2024 according to testfol.io, the investment return testing website. This is compared the 19.8% your activity managed investment returned.
A portfolio of 60% Vanguard Total Stock Market ETF, 20% Vanguard Total International Stock Market ETF, & 20% Total Bond Market ETF had a 37% return over the same period.
bill
Being in your late 20s, I would recommend 100% stocks in your retirement accounts. Once you are 15-20 years away from retirement, you can start moving to your fixed income retirement asset allocation.
You need to have some fixed income allocation at any age for your emergency fund, major house repair, saving for a new car, putting money away for vacations, etc. You could sell some stock mutual fund holdings to get needed cash, but if needed during a bear market or market correction, having to do so could be financially & emotionally unsettling.
I recommend to my kids, that are in their early/mid 30s (yes they asked for my opinion), that they have at least 5%-10% of their financial assets in fixed income (MM fund, savings, short term bond funds, etc) located in their taxable accounts (brokerage, credit union, etc) to cover some of the immediate/short term spending situations mentioned above.
BTW, VTI (Vanguard Total Stock Market ETF) was up about 50% from 2 September 2022 through 25 October 2024 according to testfol.io, the investment return testing website. This is compared the 19.8% your activity managed investment returned.
A portfolio of 60% Vanguard Total Stock Market ETF, 20% Vanguard Total International Stock Market ETF, & 20% Total Bond Market ETF had a 37% return over the same period.
bill
Statistics: Posted by billfromct — Mon Oct 28, 2024 3:29 am