I greatly appreciate the dialogue from members on MFO as I learn from each of you on a daily basis. I was hoping to get your advice. With the market turmoil, I reduced my stock fund holdings % in my 401K account down to about 50%. I did this two weeks ago. While I was able to avoid some of the carnage, I am now faced with needing to develop a strategy for increasing my stock holdings back up to their target allocation. I am 10-15 years away from retirement and my target allocation is 75% stocks and 25% bonds(38% S&P index, 16% small cap index, 21% international fund index, 20% short-term U.S. Treasury security index, 5% Barclays Capital U.S. Aggregate Bond Index).
I wanted to ask your advice on a strategy for gradually increasing my stock holdings back to their target allocation. I am thinking about increasing this gradually -- perhaps from 50% to 60% and then 60%-70% and finally 70-75%. I could make these moves on a weekly or monthly basis. Would value your advice on whether this makes sense or if you would suggest a different approach. Also, please let me know if you have any thoughts on my asset allocation. I am a member of the governments thrift savings plan so I can only choose their index funds.