Hey, I'v been enrolled in a 457 for about 7 years, I dollar cost average 1200$ a month into various funds, this is my proposed asset allocation that will get re-balanced annually. I am 28 years old, and have 18 more years till retirement, firefighter. Account value is 126,000. I got here by dumb luck and passive index investing into 100% stocks, but I would like to add bonds to my mix, here is what I have in mind below.
Nationwide Bond Index Fund 10% (0.69%)
Nationwide International Index Fund 20% ( lowest expense ratio international index fund 0.75%)
Nationwide Mid Cap Market Index Fund 20% (lowest expense ratio mid cap index fund 0.71%)
Nationwide Small Cap Index Fund 20% ( lowest expense ratio small cap index fund 0.71%)
SEI Institutional Managed Trusts S & P 500 Index Fund 20% ( the lowest expense ratio S&P index fund 0.25%)
Waddell & Reed Advisors High Income Bond Fund 10% (corporate bonds, junk bonds slightly expense ratio 0.75%)
Split summary 20% bonds, 20% international, and 60% domestic.
Would you change the allocations? One idea that comes to mind is just combining all domestic stocks into S&P500 with the lowest expense ratio. Would you change the bond allocations?