Young people don’t take enough financial risk

NY Times, Youth Is Wasted on the Generation Y Investor:

But what’s unsettling is that even though most young workers realize that they’re on their own when it comes to saving for retirement, many of those investing in 401(k)’s haven’t a clue how to allocate their funds. The average Gen Y worker puts about 35 cents of every investment dollar into fixed-income options like bond funds and so-called stable-value funds, which are bond-like vehicles. This means the youngest workers are investing even more conservatively than their parents, who on average keep only 31.4 percent of their 401(k) money in bonds, according to Hewitt.

My 401k contributions are diversified as follows (notice no fixed income):

% Type Fund
10 Company stock MSFT
25 Large Cap Fidelity Contrafund
20 Mid Cap Artisan Mid Cap
25 Small Cap Royce Low Price Stock
20 International ING International Value
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