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5 portfolio time bombs

These common mistakes could send your retirement savings up in smoke. Find a better way to divvy up your investment pie.

Target-Date Retirement Money 70 Funds
Vanguard Stocks Bonds Cash
Vanguard 2015 (VTXVX) 65% 34% 1%
Vanguard 2045 (VTXVX) 88% 10% 2%
T. Rowe Price      
T. Rowe Price 2015 (TRRGX) 71% 21% 8%
T. Rowe Price 2045 (TRRKX) 89% 6% 5%
Being too conservative - solution
Make use of an easy bomb shelter: a target-date retirement fund. The fund's manager will decide the appropriate balance of stock and bond funds for your age (chances are it'll be far more aggressive than you'd pick) and gradually lower the risk in your portfolio as you near retirement, which will keep disaster at bay.
Hot performers Solution Too little diversification Solution Ignoring your portfolio Solution Being too conservative Solution Company stock Solution
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