I have my 401k maxed. The 401k uses Fidelity 2060 Target Date Fund.
My HSA is not invested in anything yet and plan not to until I reach $7500 as it currently is around $1500 (so I can visit the doctor in case of emergencies while saving some tax unless this is a bad idea and should also be invested from the start?)
My rest of money I might need is more short term on CDs and us treasuries of 3 month (rolling every month as I realized the APY is higher from US treasuries over putting the savings in a bank), 6 month, 2 years, 4 years, 5 years, 6 years.
I already have 6+ month worth of emergency savings on my savings.
My FICO score puts me at around 800 and I have no loans or debt.
I have also maxed out my roth IRA.
What I wonder about is should my roth IRA also be on the Fidelity 2060 Target Date Fund?
If the 2060 Target Date Fund does not do well, would that not be risky for me as both my investments (401k and roth IRA) gets impacted?
I also feel like I'm comfortable enough in investing right now that I want money to compound interest. Is it safe to put 100% of my roth IRA into index funds (which is all more or less stock market) or is there advantage in bonds?
Wouldn't bonds over time lower the potential compound interest of the stock market or are there cases and reasons in which bonds are useful over purely stocks themselves.
I'm considering treating my roth IRA similar to my 401k. I'm just wondering if I should be putting roth IRA also in the same target date fund (put everything in 1 basket?) or just go 100% market following indexes (US market + international) or some type of lazy portfolio like the Core-Four Portfolio with 20% bonds.
Could anyone explain to me what the benefit of having bonds are having long term considering inflation in the market over say 45 years should make stocks increase irregardless?
Submitted October 28, 2018 at 09:19AM by Fwellimort https://ift.tt/2z8r5IV
