401k investment portfolio

Better.com / Eng
notVG

Go to company page Better.com Eng

notVG
Sep 15, 2021 8 Comments

Does it make sense to allocate 10% of 401k Vanguard portfolio to bonds?
I am 25 and don’t know if investing in bonds makes any sense at all for my age.

TC 170k
YOE 3



#investments #personalfinance

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TOP 8 Comments
  • 0% bonds until you literally retire at the VERY EARLIEST
    Sep 15, 2021 0
  • Don’t do it, put all in stocks. You have so much time ahead of you….
    Sep 15, 2021 0
  • New
    dumbicract

    New

    dumbicract
    Diversifying in bonds was a good idea at one point. Not any more.
    Sep 15, 2021 0
  • Amazon
    NjNO20

    Go to company page Amazon

    NjNO20
    There are many videos on this topic. The only reason it can make sense to have 10-20% bonds is if you have the stomach to sell them and rebalance to buy more stocks when there is a down turn. This has been proven time and again to give some stability to a portfolio.

    Having said this, it is super hard to sell your bonds and buy stock as it is falling, and if you don't, as others have said it, it is a total waste.
    Sep 15, 2021 2
  • You shouldn't care about volatility unless you are actually using it, which is why you'd have bonds in a portfolio. This becomes really important in late retirement, but your not close to that
    Sep 15, 2021 0