Khalfani-Cox: Please keep your 401(k) diversified!

Sep. 26, 2012 at 11:39 AM ET

Today Money financial expert Lynnette Khalfani-Cox joined us for a live Web chat Wednesday to answer your questions.

Here’s one of her answers to questions from the live chat. (See below for the full Q&A.)

Tony asked:

“Do you think it is prudent to reallocate 100 percent of 401 k into fixed income funds? To take advantage of the recent run up in the market while protecting [my money] from the uncertainty of the global and US economies?”

Lynnette replied:

“It's NEVER a good idea to put 100% of your 401(k) money into a single type of investment, not even so-called "safe" fixed income funds. You simply must have far broader diversification. It's estimated that 90% of your portfolio's performance is based on the MIX of investments you own. So it's way better to hold a range of securities especially as you save for retirement.”