Age              Retirement Age          Current Income
      35                     67                    $70,000
      
      Employee contributes 6% of his income to 401(k) and has so far amassed $15,000; 
      $10,000 in a bond fund and $5,000 in a large-company stock fund. It's a 
      low-risk strategy with an expected annual return of 8.4%.
      
      SUGGESTED ALLOCATION
      
      LARGE COMPANY STOCKS                               Risk level
            67%                                              High
      
           BONDS                                       Expected return
            33%                                               11%
      
                                                      Value at retirement
                                                          $2.2 million
      
                                       0R
      
      INTERNATIONAL STOCKS                                Risk level
            25%                                               High
      
      SMALL-COMPANY STOCKS                              Expected return
            20%                                                13.3%
      
      LARGE-COMPANY STOCKS                             Value at retirement
            23%                                            $3.5 million
      
           BONDS
            27%
      
      
Before it's here, it's on the Bloomberg Terminal. LEARN MORE