My 401(k) allocation summary
Hi everyone,
I recently re-distributed my firm's 401(k) plan. They're not matching anything yet, so it's totally my dollars for now. I'm 24 years old, and paid off my college loans just now so I'm investing a lot for my retirement. Here are the summary:
Investing 12% on pre-tax 401(k). Total of 9 different options, 6 being equity/stock, a bond, money market/stable, and allocation fund (T. Rowe 2050).
Of 6 equity/stock, 1 large cap, 2 mid caps, 2 foreign/EM, and 1 small cap. And they eat up total of 65%. My T.Rowe is the biggest contribution with 25% of every deposit I make.
Bond & Money Market makes up the rest at 10%.
Do you think I have diversified correctly? I have heard that T.Rowe retirement fund is great and I am vesting the most on that one since it's got great reputation.
Your advice/comments will be very much appreciated. I'm also going to open up a Roth IRA soon too. Hopefully I'm on the right track to retire rich.
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