Changed my distro to C-65, S-20, and I-15...did it last week but forgot to update it on the automated tracker...we shall see how things go this month...
DAF307,
You sure took BirchTree to heart
It is a very, VERY good distribution. I do 40/30/30 on my distributions.
Oftentimes, there is a difference between a chosen account allocation and a chosen paycheck distibution. You dollar-cost-average (DCA) using your paycheck distribution (contribution). My opinion is to NEVER buy bonds or cash with paycheck contributions. Birch made that clear as well.
After you build a little nest egg than trying to set your existing assets to an allocation becomes important. The 'G Fund' can be treated as cash - and as you near retirement (say 3 years out) you want more cash in hand to avoid the October 2008, November 2008, and early March 2009 issues. The 'F Fund' should be a stabalizer - and normally it should go up if C/S/I dump. Skittish folks (professionals and individuals) move to bonds when equities scare them. The 'C Fund' should offer stable growth at average of 9% a year, the 'S Fund' a far less predictable 10%, and the 'I Fund' can be thought of as an international 'C Fund'.
Back to allocation of existing holdings - I strongly recommend Edelman's and Lucia's books. 'The Lies About Money' is awesome. At your age I would tend to allocate almost everything into C/S/I - maybe even the same as your contribution percentage. You can lose (like BT with a -47%) in the short term, but over a 40 year
time horizon you will win big time. Investing 'safe' may not even cover inflation - and you will be dining on Alpo at 65.
Enjoy
Do the vehicles have GPS's in them now or do you still depend on the map books?
