Where to move money in 401k to reduce risk?

2018-01-16 22:18:07

I have a 401k where about 75% consists of stock based mutual funds. I want to use the remaining 25% to help protect what I've earned, especially in case the stock market goes down significantly. To do so, would I be correct in moving some money into bonds, like PIMCO Total Return?

Bonds are typically less volatile than equities (rising slower, crashing less and rebounding quicker). However, the value of PTTRX has dropped 9% in the past 5 years, while only yielding about 2.6%.

A good answer would really depend on what your 401(k) offers, and it's expenses.

  • Bonds are typically less volatile than equities (rising slower, crashing less and rebounding quicker). However, the value of PTTRX has dropped 9% in the past 5 years, while only yielding about 2.6%.

    A good answer would really depend on what your 401(k) offers, and it's expenses.

    2018-01-17 00:28:26