Should I Change @ 40y/o

[amack]

I have my retirement in a Roth @ 12% via Fidelity w/ 90/10 split. 90% JPM US Equity R6 (closest offering to S&P 500) & 10% Loomis Core PL BD N (Bond fund).

I’m about to turn 41. I have under $100K under management as of today. Should I make any adjustments?

Thank you in advance!

 

[optimisticbeliever]

@amack Huh? 401k or IRA?

The Fidelity S&P 500 fund is FXAIX. You can buy that through Fidelity in an IRA, but you only get the choices you get in a 401k or 403b.

I'm almost 20 years older than you and I think 10% bonds is too much for me.

who's managing this?

 

[amack]

@optimisticbeliever Roth 401k. Fidelity through my work. I’m a novice investor so just trying to read & learn. Did I answer your questions?

Why is 10% bonds too much for you?

 

[optimisticbeliever]

@amack Because I believe that the stock market will continue to provide superior results and I'm willing to take the risk. And I know I'm willing to take the risk because when the Great Recession caused my 401k to lose 40% of its value, I wasn't worried, and I just stuck with my plan. It took 4 years, but my 401k bounced back. But my employer has a very good 401k plan with extremely low-cost index fund options.

The two funds you have in your 401k sound high cost...at least relative to the equivalent-ish index funds.

 

[amack]

@optimisticbeliever Thank you so much for the insights

 

[longing4truth]

@optimisticbeliever We are about the same age. I’ve historically been of the same opinion of bonds as you. I’m just now letting them creep up to nearing that 10% level. It’s by design to create a bit of income (I’m retired) and not a hedge.

I seem to have a lot of risk tolerance compared to most of my peer group. Thankfully, I also have the risk capacity to go along with it. Cheers!