Do you recommend the Nasdaq 100, S&P 500, or a 50/50 allocation?

My job is now offering two large-cap stocks. The S&P 500 Index and Nasdaq 100 Index. I've read a bit about the debate on which is the wise choice, but would it be wise to invest in both evenly as opposed to choosing one over the other? Is there a recommended favorite?

Investing, Stocks
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January 2016
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The S&P 500 Index is more similar to the assets that the typical 401k account and retirement account would generally contain. An investor could do quite well in investing alone in the S&P 500 Index, provided he or she knows when to be on defense when the market takes a downturn into a bear market like 2000-2002 and 2007-2008.  The Nasdaq 100 is made up of the largest non-financial stocks on the Nasdaq and is heavily weighted in Technology stocks. The stocks underlying the Nasdaq 100 would make this index more concentrated with much higher risk. Unless you have an advisor who uses a tactical approach and is a craftsman in technical analysis it would be challenging to say the least. I would recommend that a typical allocation for someone who has 20 years or more for retirement would look like this. 80% S&P 500 Index and 20% Nasdaq 100 Index. If you have at least 10 years before you retire, I would lower the Nasdaq 100 Index to 10% and the S&P 500 Index to 90%. I believe it would be good to have both Indexes in your portfolio. My main concern would be if you have less than 5 years before you retire, then I would stay away from the Nasdaq 100. Have a good retirement!

February 2016
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