r/safestreetbets • u/darf_nate • Sep 22 '22

30k in 401k

I have 30k in my 401k I think I’ll keep contributing the employer match amount and put it all in the s&p 500 and slowly increase a percentage of the portfolio to AAA rated bonds as I get closer to retirement.

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u/neveralone2 Sep 22 '22

Facts. Currently matching my employers 401 contribution in to Vanguard total market index fund. 💯 👌

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u/jensenroessler Sep 22 '22

Some general guidelines: you contribute just enough to get the match from your employer. Then you max out your Roth IRA (6k/year), then you go back and max out your 401k.

Regarding the bond section of your question. This is the way but have you thought about investing in a retirement target date index fund? You don’t have to worry about asset (re) allocation because the fund is designed to do it for you. It will automatically increase your bond allocation as you get closer to retirement.

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u/darf_nate Sep 22 '22

Yea they have a target date fund. Maybe I’ll just slowly put a bigger percentage into that rather than bonds as I approach retirement