Bite the Bullet: Get Independent Advice
You're not a financial expert, O.K.? Don't feel bad about that. Your expertise lies elsewhere, so let someone who knows this stuff take a peek at your personal balance sheet. What you're looking for is a cold-blooded assessment of your income, expenses, savings rate, expectations and, perhaps most of all, your asset mix. This isn't a job for your accountant nephew or banker neighbor. Friends and family won't give it to you straight. Thankfully, there is a whole world of financial planners and wealth advisers who will do the job for a reasonable fee, possibly even for free if they are trying to win your future business. The best way to find a good adviser is through a recommendation by someone you know and trust. This could be a friend or relative, or possibly your accountant, lawyer or business associate. Otherwise, search for a financial planner near you via the website of the National Association of Personal Financial Advisors or the Financial Planning Association. There are also a bunch of online services that can help you assess your financial state; two of the best are Morningstar and Portfolio Monkey. Finally, don't overlook any financial-adviser services that your employer may offer. As companies have cut their defined-benefit plans and shifted to defined-contribution plans, many have added services to help you choose the right allocation in your 401(k). So check with your human resources department.