Junk Bond Funds How Should I Divy Up My 401K?
How should I divy up my 401K? - junk bond funds
How do I distribute my 401K at these 3 options?
I am 31 years old and above to be $ 216, 700 saved for retirement. The bulk of this money is savings and CDs, and now I participate in my company 401K. I have no tolerance for risk and can not handle the volatility or downturns in equity funds. I have 3 options are to invest in stocks is no longer something is going to invest. My options are a money market fund the acquisition of 0.04%, PTTAX, the pension fund is PIMCO Total Return, and sghsx, a High-Yield Bond Fund junk. I like going to pension funds for performance, but they are safe? Will I be able to manage the volatility of a bond fund? What risks are these 2 funds? If you write about the investment in an equity fund to save your time and your fingers --- I will not do. How is my 401K Divy these 3 options? Bond funds are here a bit risky when interest rates start to rise? Should I continue with the Money Market Fund? $ 216.700 is a good place to age 31 or must begin to invest more?
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2 comments:
Matthew
Firstly, the excellent work on your savings. At the age of 31 years of his colleagues as a pension. However, if you can invest more than just help your cause, but it looks like you did a good job today.
If you do not like the volatility of the stock, it is imperative to remain in high-performance funds. DWS High Income Fund, that you have declined over 24% last year mentioned. Since the S & P 500 dropped 38%, although it suffered a big loss last year. Junk bonds are nearly as risky as a rule, such as equities. The standard deviation or measure of risk to the drinking water network is 12.89%. The standard deviation of the stock market to 19%. So do not hesitate to rule out that option.
I think you should be able to manage the PIMCO Total Return Fund. This is a well-diversified portfolio of bonds in most high quality companies and government agencies (Ginnie Mae, Fannie Mae and Freddie Mac). There is some volatility, but you should be able to maintain, too. The worst year was in 1999 when the fund lost 0.75%.
You have some investments of more than one capital market, such as money market or even offer a return above inflation. So you want to save 50% on the money market and 50% in the fund Pimco. However, stay away from high-performance fund.
Best,
Kirk
www.swimupstreamtowealth.com
Great work, reaching $ 216,700 at a young age.
Back PTTAX in my view to have decent housing, but not much in the long run, but you will have moments when you lose money. Now we are in a very low interest rate. If / when interest rates rise, bonds fall most in value. I am not a prediction, but are likely to happen at some point. If you zero-tolerance for loss and then on foot.
The High-Yield Bond Fund require good management. When the economy suffers, businesses go bankrupt and default on their obligations, and that will suffer. If you zero-tolerance for loss and then on foot.
Perhaps you could help in studying the history of long-term contracts and their impact on interest rates.
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