Answer

My wife and I, both in our early 30s, and one eight-year-old daughter, have a portfolio of the following:

$87,000.00: Fam Value Fund

$81,000.00: Cash (bank savings account)

$76,000.00: Stock Options in TWMC (my wife's, who is now unemployed)

$15,000.00: My 401(k) contributing in 3 aggressive growth funds

$6,400.00: My wife's 401(k) noncontributing in a balanced fund

Here is some general feedback, based on the information that you provided.

- I have no idea what Fam and TWMC stand for. However, there seems to be a large percentage of your portfolio in each (e.g., 33% in Fam Value). I personally would put some money in a "total stock market fund" that indexes the Wilshire 5000 index as a core holding. That way, you know that at least some of your money will get the same yield as the market itself.
- Your investments should match your goals...e.g., college? retirement? No mention was made of this. Spend some time thinking about the cost and time deadline for each financial goal.
- You have way too much money in cash assets. With your wife unemployed, keep up to six months expenses (maybe nine if you think it will take her a long while to get reemployed) and invest the rest according to your financial goals.
- Consider that the stock options represent almost 30% of your portfolio. This is very high. Consider selling shares as employer policies permit to reduce this concentration in your portfolio.
- Given your ages, investing aggressively in 401(k)s seems appropriate (assuming you can tolerate the volatility). Be sure the funds that you select have a low expense ratio and good historical performance.