My brother and I will retire in about 16 years. He's always been a big proponent of 401Ks, and generally knows what he's talking about. I question his advice about one thing though: Says to put most of my current contributions into stocks now while the prices are cheap, then back off and diversify future contributions when the market is up.
Is this a reasonable plan? I do have a good mix from past contributions, and I didn't start saving until I was 40, so I need to be aggressive.
Risk and return go together.
How much do you want to earn? How much can you afford to lose?
If this were easy, everyone would be rich.
16 years is a good spell of time with which to work.
I believe buying stocks with half of your 401(k) contributions and the other half in bonds is prudent.
If you can do that with your plan, that might be a good thing to look into.
Naturally, you should consult an adviser before making any changes. It’s important for you to understand what you’re doing, and why you’re doing it.
Good luck to you, and don’t worry - think instead. It’s more profitable!