Maybe not layoff related directly but how do you diversify your 401k? Say you are risk tolerant, have one or two more decades in this grind, you take advantage of the matching, avoid the Cigna stock (someone mentioned to avoid putting money into it since we already get paid, etc.), which indexes or indices do you concentrated on? What proportions? Less bonds, and more stocks? Total stock market index or just S&P 500 indexes? Mix of everything? Do you care about average returns or the minimal fund expenses?
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S&P and small caps. Let it ride the ups and downs. You’ll be buying more shares on the lows with every contribution and match, then it will shoot up considerably. If you sell in lows you would only be locking in losses so not recommended. When closer to retirement…secure on a high in some of the lower risk options.
Use this as a baseline https://www.bogleheads.org/wiki/Three-fund_portfolio
Use the Empower tools to arrive at the right mix (you describe an aggressive strategy).
Your specific questions:
- yes, less bonds and more stocks is in line with risk tolerant.
- less total stock market index and more S&P 500 index is in line with risk tolerant.
- yes, care about long-term average returns. Long-term, proven averages. Not flashes in the pan.
- yes, care about fees and expense ratios of funds. Big fees are a thing of the past, all the major players (e.g. Fidelity, Vanguard) offer ZERO fee funds. If you're paying any significant fees/expense ratios, shop around.
The 401k administrator has an options on how to diversify. If you login to your account it will be an option there.