how to allocate 401k funds
You might have 80% stocks and 20% bonds in your 401k, the same ratio in your Roth IRA, and 50% bonds and 50% stocks in your taxable account (a more conservative allocation because you may use the money much sooner than retirement).his is because bonds are less volatile and less likely to lose large amounts of money in a year or two. Theyâre also less likely to deliver huge returns. The old rule was to subtract your age from 100 to get the target allocation of stocks. So if youâre 25, 100-25 is 75 and you would have 75% stocks in your portfolio.