That's a lot of eggs in a few stocks, but you can't handle tracking more than 5 stocks.
First, our recommendation is the first $10,000 be invested into a low-cost S & P 500 index fund.
Keep in mind: A $1 million portfolio with only $10,000 in an S & P 500 index fund translates to a mere 1% weighting for that fund.
That means, in theory, you could boost your S & P 500 index fund allocation to 40%.
One final thought: Don't forget to factor cash into your portfolio weighting, which should be based on your near-to-medium-term outlook for the market.
Persons:
Jim Cramer, Jim, — Ramon, Let's, Jim Cramer's, Peter Kramer
Organizations:
Club, Jim Cramer's Charitable, CNBC, Tech, Nasdaq
Locations:
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