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Today Money financial expert Lynnette Khalfani-Cox joined us for a live Web chat Wednesday to answer your questions.
Here’s one of her answers to questions from the live chat. (See below for the full Q&A.)
Tony asked:
“Do you think it is prudent to reallocate 100 percent of 401 k into fixed income funds? To take advantage of the recent run up in the market while protecting [my money] from the uncertainty of the global and US economies?”
Lynnette replied:
“It's NEVER a good idea to put 100% of your 401(k) money into a single type of investment, not even so-called "safe" fixed income funds. You simply must have far broader diversification. It's estimated that 90% of your portfolio's performance is based on the MIX of investments you own. So it's way better to hold a range of securities especially as you save for retirement.”
Leave a Comment:
Absolute bull crap!!! Mine is 100% in fixed income and I don't worry about it, get plenty of sleep, and it goes up 3.5% every year like clockwork on top of my employer's match. Her true colors of shilling for Wall Street came through loud and clear in this article.
Not all of us are greedy.........