General guideline of asset allocation based on ages. This is a very general guideline, you can adjust the percentage based on your risk appetite.
· 120 – (your age) = equity %
For the equity part, I would allocate 90% to total stock market index fund (VTI) or S&P 500 index fund (SPY) and 10% Nasdaq 100 (QQQ). If you don't have the choice of a total stock market index fund or S&P 500 index fund, you can use 70% large cap / 20% mid cap / 10% small cap funds allocation to make up for that.
People will ask why I have only allocated 10% to QQQ. Actually, 30% of S&P 500 index are in high technology companies. As of Junuary 1st, 2024, high technology companies had a weighting of 37% in S&P 500 Index.
For the bond part, I have another post to explain why you need to diversify your investment with bond, especially, near or at or after your retirement.
http://blog.wenxuecity.com/myblog/72332/201707/3070.html
If you don't want to manage these allocations yourself, you can use target-date funds if you have this choice in your retirement account or your company's 401(k) plan.
