30 Day Financial Cleanse Day 22: Choose Your Allocation

As a reminder this post series is all about getting a handle on your finances!  I heard about Personal Capital, a personal finance software company, and their 30 Day Cleanse and decided to take the pledge and encourage my readers to do the same!

Are you 30 and plan to work to 60? If so, invest in stock index funds (70-90% your money in 2/3 US and 1/3 foreign funds). The remaining should be a blend of bond and alternative ETFs. 

Essentially when you are young, invest in stocks where there is more risk. The younger you are the more risk you can take because you have time to build it up. As you age though, gradually move over more money into bonds so you can secure it. Your advisor should tell you this so if you are not hearing that from them, ask! 

Stay turned for Day 23: Rollover old 401ks! 


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