The answer depends on a number of different factors including but not limited to: your age, the size of your portfolio, your personal goals and objectives, and your tolerance for risk. Many investors have been told that if you are young, you should be heavily invested in stocks and if you are old you should be heavily invested in bonds. Unfortunately, it isn’t that easy.
An old rule of thumb that some investors use is that the percentage of bonds in your IRA Rollover should be equal to your age. While using such an allocation is better than not having one at all, one could make the argument that a 49 year old with enough assets saved for retirement already and that loses sleep at night when his IRA Rollover loses money, should have well in excess of 50% invested in bonds or other low risk investments.
401k Rollover / Investing Frequently Asked Questions
Here are some answer to your frequently asked questions regarding 401k rollovers.
- What will the stock market do tomorrow, next month, or next year?
- How do I know what my investment return is?
- Why is my 401k such an important benefit?
- How important are taxes when investing?
- What is a 401K Rollover?
- Is there such a thing as a “free lunch” in investing?
- What is an IRA Rollover?
- What is an investment policy statement?
- What do I do after I inherit an IRA?
- What are Treasury Inflation Protected Securities (TIPS)?
- How much risk should I be taking in my IRA rollover and other retirement assets?
401k Rollover Section Menu:
- 401k Rollovers
- Sample Fee Disclosure – Detailed Fee Disclosure
- Investor Resources – Investment Management Process – 401k Rollover Errors
- Common Investing Mistakes – No Guarantees of Continuance – Not All Investors are Experts – Nobody is Perfect – It’s All About Discipline
- 401k Rollover Options – Direct Rollover IRA – Direct Rollover to Your Current Employer’s Retirement Plan – Lump Sum Distribution
- Glossary of Investment Terminology
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