Beginner needs advice here.....

Question

....I have just under 20k wrapped up in a Roth and an employer matched 401K. I'm heavy in Bond funds(about half the money) and have the rest spread around a mix of different funds, some foreign, some domestic blue chip, some dividend producers, some small cap growth, etc.

Anyways, I am not really big on the global economy as a whole over the next few years, maybe even decade. I have done some reading and I am seeing, imo, America headed towards what Japan went thru during it's "Lost Decade". I'm wondering what I should do with my investment? Should I stay as is and just keep buying if the stock funds keep falling to buy them cheaper? Should I move everything into the bond fund since it produces a small monthly dividend? Should I try and find something that invests in Gold/Silver?

I'm 28 years old and any advice would be greatly appreciated.

Thank You.

Ktrain · Answer

....I have just under 20k wrapped up in a Roth and an employer matched 401K. I'm heavy in Bond funds(about half the money) and have the rest spread around a mix of different funds, some foreign, some domestic blue chip, some dividend producers, some small cap growth, etc.

Anyways, I am not really big on the global economy as a whole over the next few years, maybe even decade. I have done some reading and I am seeing, imo, America headed towards what Japan went thru during it's "Lost Decade". I'm wondering what I should do with my investment? Should I stay as is and just keep buying if the stock funds keep falling to buy them cheaper? Should I move everything into the bond fund since it produces a small monthly dividend? Should I try and find something that invests in Gold/Silver?

I'm 28 years old and any advice would be greatly appreciated.

Thank You.

Rush51 · Answer

Look at this way. You are 28 y/o and have time on your side for your retirement money . Why are you worried about the next 10 years ?
Stocks are the only thing in the world people are afraid to buy when they go on sale and get cheaper.

I am 38 y/o and put a bigger allocation in big-cap dividend payers... because even if the economy does nothing (as it's done for the last 10 years, quite literally), then let the dividends reinvest themselves and buy shares on the cheap.

Remember, it's a marathon.... not a sprint, when it comes to retirement money at your age.

BTW, you have way too much IMO in bond funds, particulary for your age. I would suggest 0% for your age... but 25% max if it makes you sleep better.

Ktrain · Answer

Rush,&#xD;&#xA;I appreciate the advice. I do realize that I have a lot more invested in bond funds than I should, but as I said it is my safety net. I will start looking into big cap dividend payers as you suggested. &#xD;&#xA;Thanks.

Beginner needs advice here.....

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