Welcome to the forum.
A higher percentage allocated to equities can be expected to have a higher return over time but have higher value volatility along the way.
For those in the accumulation phase of life, an 80% equity allocation is reasonable.
Investing in a target date fund is also fine. I believe the 2050 fund is about 85% equity. These funds generally have higher fees (expense ratio) which can be a drag on your portfolio value over time compared to individual fund selections.
However, what matters most is your investment asset allocation across your entire retirement portfolio (taxable, IRA, and 401k accounts). Are you investing in these other accounts?
To get the best feedback from the forum, I suggest you start a post using the Asking Portfolio Questions format. https://www.bogleheads.org/wiki/Asking_ ... _questions
These two allocations have different overall asset allocations. The advisor's choice is about 60% equity and covers more of the world stock market. Your selection is 80% equity and focuses on larger companies in the developed worldThe 401(k) portfolio I inherited from my previous financial advisor at Fidelity is currently allocated as follows:
Vanguard 500 Index – 39%
Vanguard Small Cap Index – 8%
Vanguard Developed Markets – 10%
Vanguard Emerging Markets – 4%
Vanguard Total Bond Market – 13%
Vanguard Short-Term Federal – 26%
...I’m considering an allocation along these lines:
Vanguard 500 Index – 50%
BlackRock EAFE Equity Index – 30%
Vanguard Total Bond Market – 20%
Does this seem like a reasonable strategy?
The main difference is percentage invested in equities.I understand that market timing is generally a bad idea, but I’m trying to better assess the overall risk level of this approach. I’m also thinking about how to gradually reduce risk over time. I’m currently 40, and my tentative plan is to move progressively toward a 60/40 stock-to-bond allocation by my expected retirement around 2050.
That said, I’m wondering if I may be overcomplicating things and whether it would make more sense to simply stick with the BTC LifePath 2050 F target-date fund instead.
A higher percentage allocated to equities can be expected to have a higher return over time but have higher value volatility along the way.
For those in the accumulation phase of life, an 80% equity allocation is reasonable.
Investing in a target date fund is also fine. I believe the 2050 fund is about 85% equity. These funds generally have higher fees (expense ratio) which can be a drag on your portfolio value over time compared to individual fund selections.
However, what matters most is your investment asset allocation across your entire retirement portfolio (taxable, IRA, and 401k accounts). Are you investing in these other accounts?
To get the best feedback from the forum, I suggest you start a post using the Asking Portfolio Questions format. https://www.bogleheads.org/wiki/Asking_ ... _questions
Statistics: Posted by dogagility — Mon Dec 15, 2025 4:29 am — Replies 1 — Views 97