Quote:
Originally Posted by eDave
Hey guys. I've got a friend who is new to the 401K thing, though he has around $25K so far. He is same age as me, 50. His company matches up to 4%. He is contributing 10%.
What would be the the best 401K portfolio for a guy like that? He'll assume more risk as he'd like to maximize over the next 15 years. Don't know his salary, but in the 28% bracket.
I recommended small/midcap fund but would like to hear other's thoughts. And those went to shit today. Down 2.75%.
Thank you Gentlemen,
eDavid
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He should allocate to index funds to mimic the global market economy which is about 45% US equities and 55% international. If he wants a home town bias he can flip those and do 55% US. Then diversify over small, medium, large cap.