Help my mom pick out her retirement funds
 

My mom works for a company that allows her to save between 2-20% of her pay to be put into retirement funds, and the company will match the first 6%. So she decided to put 10% of her monthly salary into it. She has no clue how to pick funds, and I have a small idea, but I figured it would be better to ask the experts. Her monthly salary is only around 2000 a year, so she's only putting in about 200 a month if that changes anythings. Keep in mind that she's a 50 year old woman, so safety is just as important as equity.

1) Becton Dickinson Common stock, or BDX. It's a biotech company. http://finance.yahoo.com/q/bc?t=2y&s...amp;q=l&c=

2) Fixed Income Fund. This is the one I wasn't sure about. Is this like a bond? I'm assuming she wants this if safety is a big concern, right? The APR over the past 5 years was 4.82%.

3) S&P 500 Index.

4) S&P Midcap Index

5) International Equity Fund. Emphasizes in Europe, Canada, Australia, and Far Easy. 14.45 APR over past 5 years.

6) Small Cap Index Fund.

My first thought was 40$ Fixed income fund, 20% international, 20% small cap, and 20% S&P. Would you guys recommend anything else?

Re: Help my mom pick out her retirement funds
 

How much longer is she looking to work? till 60? 65? etc...

Re: Help my mom pick out her retirement funds
 

65

Re: Help my mom pick out her retirement funds
 

I like these:
http://www.vanguard.com/VGApp/hnw/co...verviewJSP.jsp

Re: Help my mom pick out her retirement funds
 

The bond fund shouldn't be a part of the equation with 15 years to go. With 15 years to play, you want well diversified growth for the next 10 years or so, then you become more cautious and start to shift focus to fixed income and blue chips but 15 years is a long time horizon so you should absolutely be growing your money. And as far as company stock goes... thats a crapshoot because its next to impossible to predict where a biotech company (non blue chip) is going to be in 15 years...... if you do any common stock, please make it a small portion, like 10%. (10% is a large holding % wise in any type of fund) Also, its hard to make specific recommendations without fund names, but the international fund sounds terrible 14.5% 5 year average is terrible for a fund thats got large europe exposure (which has had insane 5 year returns) which makes me think thats no t gosu...so i'd go mid cap and s&p 500 index

Re: Help my mom pick out her retirement funds
 

My first thought was 40$ Fixed income fund, 20% international, 20% small cap, and 20% S&P. Would you guys recommend anything else?

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You should DEF not be looking at 40% fixed income allocation with 15 years to go... that is not the way to go. I know it can be scary thinking about losing your retirement, but if the majority of your retirement savings is in fixed income funds, she won't be retiring on that money. Thats almost guaranteed. I'm presuming shes not retiring until 65 because she can't... and if thats the case, then the answer is to grow the $, not watch the grass grow from the office chair