Buy Bonds Instead?

[quelinda]

My DH's 401K is currently 100% in VINIX, which has been doing INCREDIBLY well (26.49% 1-year return). Just this year we started putting the max into his 401K, and I'm wondering if we should be putting new contributions into a total bond market index fund instead (Vanguard's is not an option, but Fidelity's version is).

I'm not good about buying low or diversifying, so I'm wondering if we should stop buying VINIX & start buying the bonds. What do you think?

(BTW, we're pretty much following JLCollins' advice by not diversifying, but maybe we should be?)

[ysette9]

Don't look at a 1-year performance of a fund; it is meaningless. That said, what is your target asset allocation? What does your Investment Policy Statement tell you to do? https://www.bogleheads.org/wiki/Investment_policy_statemen

You are starting down the right path of realizing that you need to consider all of the funds in all of your accounts and make sure that the sum total is well balanced. With all of one 401(k) in large-cap stocks this sounds like it is potentially not well balanced. Some good reading and possible target portfolios for you to consider are some very simple "lazy portfolios" or "three-fund portfolios" that Bogleheads wiki recommends.
https://www.bogleheads.org/wiki/Three-fund_portfolio
https://www.bogleheads.org/wiki/Lazy_portfolios

Don't worry about "buying low" since that is market timing and a fool's errand. Continue maxing out the 401(k) as you have been doing (awesome) and just spend some time figuring out what you want your overall portfolio to look like. Feel free to bounce your draft ideas against this community as there are plenty of smart people here.