Saturday, February 21, 2009

Are you thinking about Retirement?

By: Li Bin Chen

NEW YORK (Money) -- Question: My wife and I are 27 years old and have contributed to a Roth IRA the past two years. Our money is in a 2040 target-date retirement fund that has about 90% of its assets invested in stocks and the rest in bonds and money-market funds. Should we continue to contribute the maximum to our Roth IRA if this is our only retirement vehicle? And is a portfolio mix of 90% stocks and 10% bonds and cash right for this volatile market? ?Joe, Lancaster, Ohio

Answer: Let's start with the more straightforward of the questions you ask: Is a portfolio mix of 90% stocks-10% bonds and cash appropriate given today's yo-yoing financial markets?

The short answer is yes.

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