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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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.