In my portfolio models shown in this blog, I use six Exchange-Traded Funds (ETF’s). Essentially, these ETF’s are index funds that can be bought and sold during market hours on the stock exchange.
For your 401k, you may have investment selections that closely correspond to the asset classes represented by the ETF’s I have chosen. If so, then you can simply match your choices to the ETF’s I use, and follow the percentage allocations in the model portfolio most suitable to your situation. If your 401k choices lack one of these asset classes, please let me know what all of your choices are. It may take me a week, but I may be able make a couple of suggestions.
Also, if there is a large group of readers who have the same plan, let me know who you are and what your plan offers.
On to Step 3