I am 26 and I have a Roth IRA I max out every year that is S&P 500

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  • #84152 Reply

      I was offered a 401k with my employer and could also choose S&P 500, but if both of my retirement accounts are in the same boat and that boat sinks, I just worry.

      Should I do a way far out target date fund (2065 – not necessarily when I plan to retire but I don’t want it to increase bonds anytime soon) for 401k to diversify into international a bit?

      It’s a more conservative route and it has 10% bonds until 2045, but I don’t know if it’s best to put all my eggs in one basket with the S&P.

      #84153 Reply

        Like previous posters mention and getting even more specific about it including international exposure. Google is part of the S&P 500 and half of their revenue is from overseas. So if the dollar goes down and/or emerging markets increase, Google and thus the S&P will benefit. At 26 stay fully vested into the market and continue buying at all times.

        #84154 Reply
        B Katherine

          ince there are so many international companies in the s&p 500, it is considered diversified internationally. If you look at the weighted dollar average about 40% of the s&p 500 is international. As the US dollar goes down, revenue from other countries increases compared to the dollar increasing company value.

          Don’t miss: I have FBIOX in my Roth IRA – SO..

          #84155 Reply

            In fairness it’s putting all of your eggs into 500 baskets.

            But if you have the option to add international that’s totally reasonable.

            #84156 Reply

              The S&P is as diversified as it gets!

              If you are young, I would not bother with bonds. In fact, even when I get to be 65 I won’t invest in bonds. That’s just my preference.

              I think you are worried for no reason. The S&P 500 is pretty much the entire domestic market.

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