I've been reading The Truth About Money by Ric Edelman, and one thing he recommends is to put 100% of your 401K into stock mutual funds, as opposed to the usual recommendation of a more diversified portfolio of stock and bond mutual funds. His argument is that especially if you are far from retirement, there is little risk from investing all in stocks. He says that stocks generate the biggest return over the long term, and even if the stock market crashes, you'll continue to invest money from each paycheck moving forward, so you will not lose everything. The one caveat is that if you are just a few years from retirement, you should NOT do this and should include some bond mutual funds as well. What do you think about this idea? I am generally very tolerant of stock market risk, and I have at least 30 years to go before retirement. I have been investing in an index target-date lifestyle mutual fund but I would certainly be willing to invest more heavily in stock mutual funds to further maximize my returns. What would you do?
Submitted May 12, 2021 at 01:08AM by cden4 https://ift.tt/2SExwkh
